United Kingdom-based additive company Infineum will open an additive blending plant in India next year. The announcement last week points to the lubricant industry’s growing interest in the country as the world’s fastest-growing automotive oil market.
The European Union has mandated no new internal combustion engine cars can be sold in the bloc after 2035. Given an average lifespan of an ICE car is about 12 years, 2050 could be the end of the road for sustainable income from automotive lubricant additives in Europe. Other parts of the West are likely to follow.
Lubricant and additive companies such as Infineum are looking East to countries such as India, Vietnam and Indonesia zwhere there is room for growth as car ownership increases. Competition will also likely be stiff, as other companies eager to “tap into the rising demand for high-quality lubricants and additives.”
The new facility, set for completion by March, will start trial production mid-year and expects to be at full tilt by the third quarter. The main product will be sulfonate and salicylate packages for automotive lubricants.
The company is yet to disclose the location of the new plant, but it already has a presence in Mumbai. The facility will include chemical testing and supply chain management, tailored to local needs, the company said.
Infineum is a joint venture between the U.S. company ExxonMobil and the U.K.’s Shell.