HD Hyundai Oilbank to advance into N.American lubricants market

HD Hyundai Oilbank Co., South Korean shipbuilding and machinery conglomerate HD Hyundai Co.'s oil refining unit, will venture into the North American lubricants market, the world’s largest of its kind, with its construction machinery sibling HD Hyundai XiteSolution Co.

HD Hyundai Oilbank announced on Wednesday that it will supply 25 TEUs, or twenty-foot equivalent units, worth of Hyundai XTeer brand lubricants to HD Hyundai XiteSolution for the commercial vehicle market in North America every year.

HD Hyundai XiteSolution is the intermediate construction machine and equipment holding company of HD Hyundai and mainly produces hydraulic, power transmission and electric functional parts of construction machines and equipment.

It controls global construction machinery manufacturers HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co. as subsidiaries.

HD Hyundai Oilbank’s venture into North America with HD Hyundai XiteSolution is expected to pave the way for the expansion of its presence in the world’s No. 1 lubricants market.

Korean makers make up a mere 0.1% share of the lubricants market, which is already dominated by big global players.

The Korean oil refiner is actively seeking to go global in the lubricants sector with its construction machinery sibling company. Starting with Qatar and Honduras in 2022, they have so far teamed up to foray into seven countries.

BUSINESS DIVERSIFICATION

HD Hyundai Oilbank plans to supply more lubricants to overseas construction machinery companies through partnerships with HD Hyundai affiliates.

The company last month also launched an electric vehicle-dedicated lubricant brand Hyundai XTeer EVF, finally joining its three bigger crosstown rivals in the EV lubricants race.

Its mainstay businesses are refining, petrochemicals and lube base oil.

But it is also pursuing to transform from a petroleum and oil refining company into an eco-friendly energy company by expanding its blue hydrogen, white biotechnology, eco-friendly chemicals and materials, resource recycling and lubricants businesses.

The Korean oil refiner is backed by Saudi Aramco with a 17% stake.

It originally planned to go public in 2022 but withdrew its initial public offering plan due to souring investor sentiment across the global IPO market.

Write to Jin-Won Kim at jin1@hankyung.com

Sookyung Seo edited this article.