Chinese lubricants

Castrol, the lubricant brand of the BP group, and Dong Feng Group are to form a joint venture company to supply lubricants to the growing Chinese market.

Under the joint venture contract, BP, Dong Feng Motor Corporation and Dong Feng Automobile will have equity stakes of 50:20:30 per cent respectively in the joint venture, which will run for an initial 30 year period.

The new company, Dong Feng-Castrol Lubricant, will be based in Wuhan, in Hubei Province, the largest city in central China.

With a total investment of RMB120 million and total production capacity of 50,000 tons per year, the joint venture will carry out product research and development, manufacturing and the marketing of a range of dual-branded Dong Feng-Castrol automotive lubricant and antifreeze products.

In addition, the joint venture’s products will be used for both the first-fill and service fills for the full range of Dong Feng automobiles.