UMW expansion into the premium Asian lubricant market is driven by its strategic partnership with Repsol YPF Lubricantes Y Especialidades, S.A. (Repsol). Under a principal agreement signed with Repsol, UMW Lubricant International Sdn Bhd (ULI), a wholly-owned subsidiary in the UMW Group, will have exclusive rights to blend and distribute the premium range of Repsol lubricants for the automotive industry in Asia.
UMW’s strong presence and knowledge of regional markets coupled with our expertise in lubricant manufacturing technology will help promote and open new markets, launching REPSOL’s established brand of premium lubricant products into the Asian market. Repsol, a well established name in Europe has a strong foundation in the motorcycle lubricants sector via its long standing association with MotoGP. For the automotive and industrial sector, it carries a wide range of lubricant products for passenger, commercial vehicles, and industrial use.
Direct imports of Repsol products are being marketed in Malaysia with promotions in Singapore, Brunei, Papua New Guinea, and Myanmar being done in planned stages to build a new premium platform. For Malaysia the planned target is to build a nationwide distributor network of 200 outlets by the end of 2011. Manufacture of Repsol in Malaysia is scheduled to commence early next year to support the target sales in 2012 covering Singapore, Brunei, Papua New Guinea, and Myanmar.
China’s lubricant market is the second largest in the world offers a huge potential for expansion for UMW and Repsol. To exploit this opportunity, Lubritech Limited, China, a subsidiary of UMW, commenced importing and selling of Repsol lubricants in March 2011. Repsol products are currently sold by more than 30 distributors in China Central and China South with the distribution network expanding to 120 distributors in 2012. The new blending plant in China commenced blending of Repsol formulations in April of this year, providing a direct supply line to the provinces. Locally blended products are currently being sold in China in 4, 18, and 200 litre packages.
Background - Repsol
Repsol is Spain’s largest integrated oil and gas company with principal operations in Latin America, the Middle East, and North Africa as well as and other operations in over 30 countries in upstream, downstream, and LNG businesses.
Racing technology has become part of the image of its range of auto lubricants with international prominence in racing events like the MotoGP. Over the years, Repsol has developed and established itself as a premium brand in the global arena with an aggressive R&D arm that is continually providing cutting-edge technology solutions.
Respsol’s range of lubricants is in direct competition with major global premium brands and it continues to strive for greater market share with a strategic initiative for global expansion.