SK Lubricants Co., an affiliate of refiner SK Innovation Co., said Sunday it has made a stake investment in a Vietnamese lubricants company for an expansion into Asian markets.
SK Lubricants signed a deal to acquire a 49 percent stake in Mekong, Vietnam’s biggest lubricants company, on Friday to strengthen its presence in Vietnam and the Association of Southeast Asian Nations (ASEAN) markets, the company said in a statement. Yonhap News reports.
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“Through the partnership, Mekong will sell SK Lubricants’ Korean-made products in Vietnam and manufacture lubricant products based on base oil shipped from SK Lubricants’ plants in South Korea, Indonesia and Spain for local sales in the Southeast Asian market,” a company spokesman said over the phone.
The company didn’t provide the value of the contract, citing a confidentiality agreement.
Also read: Ken Research released its research report of Vietnam lubricants market outlook to 2023
In this photo taken Feb. 7, 2020, and provided by SK Lubricants, the company’s CEO & President Cha Gyu-tak (3rd from R) shakes hands with his Mekong counterpart Hoang Le in Vietnam after signing an agreement for a stake investment in Mekong. (PHOTO NOT FOR SALE) (Yonhap)
According to the information provided, Mekong Trading and Manufacture Company Limited was established in 1996 to satisfy needs of lubricant oils of Mekong Delta area, Vietnam and SouthEast Asia. Presently, Mekong Petrochemical and Joint Stock Company is recognized as one of top petrochemical companies in Vietnam and SouthEast Asia
Lubricant is capable of reducing friction, heat and wear when introduced as a film between solid surfaces.
Vietnam’s lubricant market is dominated by three global major companies — BP Castrol, Shell and Chevron Corp.
SK Lubricants is wholly owned by SK Innovation, the country’s biggest refiner by sales.
By Yonhap/ Vietnam Insider
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