Petron to build $2.5-M plant in Subic

Petron Corp., the country’s largest oil refiner, on Thursday said it would build and operate a $2.5 million-worth fuel blending plant in Subic , Zambales by the end of this year, as part of its expanded partnership with international firm Innospec Inc. Innospec is an international specialty chemicals company which currently supplies Petron and other oil firms with fuel additives. “The blending plant will serve as Innospec’s supply hub in the Asia-Pacific region, as it positions itself to tap the fast growing regional market and bring its products and services closer to Asian customers," Petron said. The contract, which will last for ten years, guarantees that Petron will be Innospec’s only fuel blender within the region. “Having an Asian supply hub will further strengthen our fuel additives business in the region by accelerating our response time and enhancing our supply capability," Innospec president and chief executive officer Paul W. Jennings said. “The market for fuel additives in Southeast Asia is already huge, and this strategic partnership with Petron could help us jointly open significant new markets such as China and India ," he added. Aside from constructing and operating the blending plant, Petron said it would also provide Innospec help with technical services. “Petron will be providing technology support services to Innospec and its customers in the region, including customer technical programs," it said. Petron said the technical services will also include laboratory services, product development, field tests and consultancy services. In exchange for helping Innospec, the local company said it would be able to take advantage of Innospec’s existing regional customer base. “Petron will also be able to tap the customer base of Innospec in the region to broaden the market for Petron’s own lubricant brands. Innospec already serves a wide variety of power plants, refiners and manufacturers throughout the region, many of which are also users of lubricants," Petron said. Petron markets its lubricant brands locally, and in Cambodia and Indonesia. -GMANews.TV