WUHAN, China — Castrol, the lubricant brand of the BP group, and Dong Feng Group, the world’s third largest truck manufacturer and also one of China’s top three automotive companies, announced they are forming a joint venture company to supply lubricants to the growing Chinese market.
The new company, called Dong Feng-Castrol Lubricant Co., Ltd, will be based in Wuhan, in Hubei Province, the largest city in central China. This will be 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 Corp. and Dong Feng Automobile Co Ltd. will have equity stakes of 50, 20 and 30 percent, respectively, in the joint venture, which will run for an initial 30 year period.
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.
_______________________________________
Click here to view the rest of today’s headlines.
