(HD Hyundai Oilbank)
South Korean oil refinery and petrochemical firm HD Hyundai Oilbank said Wednesday it is making significant inroads into the North American lubricants market by supplying its XTeer products for HD Hyundai XiteSolution's industrial vehicles.
The strategic push by the two subsidiaries of HD Hyundai aims to secure a foothold in the lubricants market traditionally dominated by major industry players, where Korean manufacturers currently hold less than a 0.1 percent share.
The refinery company's XTeer product line includes a range of lubricants designed to optimize the performance of industrial vehicles, including hydraulic and mission oils. The two companies have committed to an annual supply volume of 25 Twenty-foot Equivalent Units, a standard measure for cargo capacity. In terms of car lubricants, the amount is roughly sufficient to service about 130,000 vehicles annually.
This joint venture builds upon the existing synergy between HD Hyundai affiliates, which began expanding their global operations in 2022, launching supply cooperation projects across seven countries, including Qatar and Honduras.
In 2020, Hyundai Oil Bank launched the Hyundai XTeer Ultra series, a collection of advanced lubricants complying with the rigorous standards of the American Petroleum Institute and the International Lubricant Standardization and Approval Committee.
In January 2023, HD Hyundai Oilbank also launched the Hyundai XTeer EVF, a lubricant specifically formulated for electric vehicles, in order to carve out a position in the international market, including Europe, and to capitalize on the growing electric vehicle lubricant sector.
As the global automotive landscape shifts towards electric vehicles, traditional refiners are compelled to diversify their business portfolios. Despite lubricants contributing a modest 5 to 10 percent to the total sales of Korean refinery companies, their significance in terms of operating profit is still substantial, accounting for up to 50 percent.
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