Castrol and Dong Feng Join Hands To Manufacture Lubricants In China
Castrol, the lubricant brand of the BP group, and Dong Feng Group announced that they are to form a joint venture company to supply lubricants to the growing Chinese market. The new company, Dong Feng-Castrol Lubricant Co., Ltd, will be based in Wuhan, in Hubei Province, the largest city in central China, and is the first Chinese-based lubricant equity joint venture between a global lubricant major and a leading Chinese automobile manufacturer. Under the joint venture contract, BP, Dong Feng Motor Corporation and Dong Feng Automobile Co Ltd. will have equity stakes of 50:20:30 per cent respectively in the joint venture, which will run for an initial 30 year period.
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, ensuring all Dong Feng customers benefit from high quality products and service.
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