Jebsen is partnering with CleanOil Investment to manufacture recycled base oil and lubrication oil for industrial and automotive use in China.
An initiative to support the government’s clean energy drive, the two firms will jointly build an advanced oil refinery in Gaolan Port Economic Zone, Zhuhai.
The new plant will recycle used lube oil to produce Group II base oil and high-quality lube oil for vehicles and industrial machinery, with the help of CleanOil’s operational expertise and re-refining technology.
Production will begin by the second half of 2015 and the plant is scheduled to produce 20,000 tons of oil per year.
Jebsen Group will support the new business by implementing knowledge of China’s automotive aftermarket and its China-wide sales and distribution network of industrial products in the region.
At present, around 60-70 percent of China’s annual lube oil consumption of around 8 million tons is collected for re-processing, but less than 10 percent of this is re-refined as lube base oil.
The capacity is expected to rise in coming years. Private car use in China is contributing to a rise in demand for lube base oil of around 10 percent per year, which also increases the volume of used oil available for recycling.
The new plant will adapt closed loop recycling process, which will produce high-quality base oil of an industry-accepted standard without causing secondary pollution.
Besides, this will help in reducing reliance on imported base oil. It will also prevent dumping of used oil, avoiding environmental pollution.
In 2009 Jebsen established a carbon emissions objective and reduced the carbon intensity by 22 percent by 2013. It has also invested in carbon-offsetting projects and purchased carbon credits to achieve carbon neutrality for a second consecutive year.
Products from Jebsen Group and its joint-venture companies also contribute to environmental conservation.
Sabeena Wahid
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