Petronas Dagangan to supply lubricants to Port of Tg Pelepas

Kuala Lumpur: Petronas Dagangan Bhd's (PDB) unit Lub Dagangan Sdn Bhd will supply lubricants worth RM51mil to Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) following the signing of an eight-year contract with the latter.

Petronas Dagangan said in a statement that it would supply its line of industrial and marine lubricants to PTP, which operates one of South-East Asia's fastest growing ports and container terminals.

Speaking at the signing ceremony, Lub Dagangan chief executive officer Zubair Abdul Razak said the signing marked the beginning of a long-term partnership between two industry leaders.

"Importantly, this new partnership has certainly strengthened the commercial segment of our lubricants business. This RM51mil contract is also a clear testimony of PTP's confidence in the quality of our products and trust in our level of service," he added.

Lub Dagangan, which is 100% owned by PDB, is the sales and marketing arm for Petronas lubricants in Malaysia. The lubricants business is one of PDB's four core businesses, contributing more than RM589mil to PDB's revenue of RM32.34bil for the financial year ended Dec 31, 2014.

Over the years, the lubricants business has grown from strength to strength, supported by a strong portfolio of lubricant products including the Petronas Syntium range of passenger car motor oil, the Petronas Syntium Moto range of motorcycle oil, Petronas Urania lubricants for heavy-duty diesel engines, as well as a full range of industrial and marine lubricants (IML).

Zubair said Petronas aimed to become the number one player in the market. "By leveraging on the group's vast experience and expertise in the area of fuel and lubricants development, we are confident that Petronas is the preferred total fluid solutions provider across business-to-business and business-to-consumers segments."

Meanwhile, PTP chief executive officer Glen Hilton said the inking of this agreement would further support PTP's operational growth and complement its improvement initiatives, especially in areas of efficiency, safe lubricating methods, better stock management and understanding engines' wear and tear from lubricant analysis.

"We are pleased to secure the deal with Lub Dagangan as we can now move from the traditional client-supplier arrangement to a partnership model that goes beyond just supplying products to listening and understanding the client's needs and making provision of value add services and support equipment," he said.