Russian oil producer Gazprom Neft has begun construction on new mixing, packaging and storage facilities to help drive lubes market expansion.
The 2bn rouble ($65m) plant will be attached to the Omsk Lubricant Plant at the company's Omsk Oil Refinery and is set to help Gazprom increase its share in Eastern Russia and Kasakhstan.
Total annual plant production will rise from 65,000 to 120,000 tons, allowing increased manufacture of the SibiMotor 'economy-class' auto engine oil and Gazprom-branded industrial lubricants.
The area of the plant which will include expanded raw and finished product storage and new packaging lines is due for completion towards the end of 2011. A new blending facility, capable of handling 70,000 tons annually will be completed in 2012.
The company aims to capture 20% of the Russian Asian market and 30% of Kazakhstan's demand by 2015, having already accounted for 15% of Russian lubricants in 2009, selling 425,000 tons of product.