HD Hyundai Oilbank Expands Global Business by Pioneering Lubricant Market

HD Hyundai Oilbank announced on the 31st that it will continuously develop the lubricants market and actively expand its global business scope.

Industrial vehicle lubricants sold by HD Hyundai Oilbank in the North American lubricants market (Photo by HD Hyundai Oilbank)

Earlier this year, HD Hyundai Oilbank entered the North American lubricants market by supplying industrial vehicle lubricants under the 'Xteer' brand to HD Hyundai Site Solutions. Although North America is the world's largest demand region for lubricants, domestic manufacturers have a very low market share, making this entry a foothold for expanding the global automotive lubricants market.

Last year, the company signed a petroleum product supply contract for 2024 with the US-based SUNOCO, expanding its petroleum product exports from Hawaii to the US mainland. Since last year, it has also been exporting more than 7 million barrels annually to New Zealand.

HD Hyundai Oilbank is actively pursuing eco-friendly new businesses based on the know-how and facilities accumulated in refining and petrochemical businesses. The white bio business is a representative example. They have established a three-stage bio business roadmap that includes building a biodiesel manufacturing plant, producing next-generation bio jet fuel, and entering the bio-chemical business. The biodiesel plant is scheduled to begin commercial operation this year.

For bio jet fuel, production using Hydrotreated Vegetable Oil (HVO) is planned targeting after 2026. At the end of last year, they secured a stable supply chain of bio raw materials by signing a purchase contract for PFAD (Palm Fatty Acid Distillate) with the Korindo Group and LX International. PFAD is a byproduct generated during palm oil production, characterized by high acidity, and can only be used as raw material in a few biodiesel plants worldwide.

An HD Hyundai Oilbank official stated, "Since 2022, the proportion of exports to the US in the lubricants market has been gradually increasing, and we are expanding our export territory beyond traditional Asian markets such as Singapore and Indonesia." He added, "Along with entering the bio business, we will expand our global business scope."