SK and Repsol lubricants plant begins production in Cartegena.
SK Lubricants, the world’s third-largest lubricant oil producer behind Exxon Mobil and Shell, is celebrating first output from the plant in which it holds a 70% stake, having invested 470bn won ($439m).
The South Korean lubes giant will be responsible for providing the technology for lubricant production, along with a global marketing network. Repsol, which owns the remaining 30%, will supply the materials and infrastructure for production.
SK, which runs lubricant oil plants in South Korea and Indonesia, has been struggling with slowing profit margins and global oversupply. The auto industry's rising demand for lubricants has been in sharp contrast with the refinery business. Thus, while SK Lubricants' boosted Q2 operating profits to nearly 80bn Won, parent company, SK Innovation, revealed Q2 losses as a result of poor refining margins.