This article first appeared in The Edge Financial Daily, on April 7, 2016.

KUALA LUMPUR: Petronas Lubricants International Sdn Bhd (PLI), the marketing arm of Petroliam Nasional Bhd (Petronas), has completed the acquisition of an additional 12% share in Yuchai Petronas Lubricants Co Ltd (YCPL), bringing its total stake to 50%.

“[This] makes it an equal partnership between PLI and China-based Yuchai Lube Co Ltd, a subsidiary of Yuchai Group,” said PLI in a statement yesterday.

It added that the increase of share ownership will allow PLI to achieve sustainable growth and profitability in China’s lubricants market by 2020 and introduce new technologies, diversify its product portfolio and strengthen regional teams.

“China is Petronas’ fastest-growing lubricants market where in 2015 alone, PLI sold more than 100 million litres of motor oil,” said PLI managing director and group chief executive officer Giuseppe D’Arrigo in the statement.

“We believe China has great potential and opportunities to be the worldwide leader in automotive engineering, manufacturing and technology in the future,” he added.

PLI entered into a joint venture (JV) agreement with Yuchai Group to form YCPL in 2013, with an initial share of 38%.

PLI said YCPL recorded steady growth at an average rate of 10% within two years. It currently ranks among the world’s top 15 lubricants companies.

Last year, the JV entity set up the Guangxi Nanning Yuchai Petronas Lube Co Ltd research and development (R&D) centre in Guangxi, China.

“The JV firm’s focus for 2016 is to further expand its product offerings with a robust portfolio that caters to the unique demands of China’s industrial oil sector. Our efforts in R&D will also be ramped up to deliver better-quality diesel engine oil (level CJ4 and above),” said PLI chief of commercial Giuseppe Pedretti.