A Shandong firm is targeting the industrial lubes sector with a 12,000tn storage facility.
Qingdao Jiadeli Chemicals is set to increase its capacity to accommodate the fast-growing industrial sector. Upon completion, the six new storage tanks, each containing 2,000 tons of lubricating oil, will comprise the largest lubes storage facility in Shandong province.
The Qingdao-based company hopes the new facility will allow it to reduce supply-side overheads and increase competitiveness in the industrial lubes sector. “Currently, a lot of lubes companies are investing in the auto lubes sector, but there is still a fairly large shortfall in supply of industrial lubes,” claimed a company spokesperson.
The tanks will be mainly used to store high-quality HF-O hydraulic oils, low-zinc anti-wear hydraulic oils, high temperature chain oils, bearings grease, marine lubes and other industrial oils.
While the passenger car sector has been rapidly improving emissions standards, the construction sector is still catching up. Jiadeli are focusing on storing higher quality lubes on the back of new government initiatives to clean up the nation’s polluting industrial sector.
The new 150m yuan ($25m) facility will primarily serve the heavily-industrialised province of Shandong, but will also cater to growing international demand from nearby Asian economies.