ExxonMobil to nearly triple network

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Updated: 2007-04-17 17:03

ExxonMobil Corp plans to nearly triple its Car Care service network in China to cash in on the future growth in the country's lubricant market.

The US energy giant will have 600 Car Care outlets in China by the end of this year, versus more than 200 now, Lou Dajiang, deputy general manager for marketing at ExxonMobil China.

"Exxon will open the new outlets mainly in big and mid-size cities," Liu told a media briefing in Shanghai yesterday. He declined to say how much Exxon would spend on the expansion.

Daniel McDermott, general manager of ExxonMobil China, said sales of its flagship lubricant product Mobil 1 surged more than 40 percent in China last year, outpacing the growth in the auto market. But he did not give detailed figures.

Rival Royal Dutch Shell last year took control of Being Tongyi Petroleum Chemical Co and Xiangyang Tongyi Petroleum Co, which together produce and market China's leading independent lube brand.

The acquisition made Shell the No 3 player in China's lube market after State-owned PetroChina Co and Sinopec Corp, which together account for 65 percent of the domestic market, said Kline & Co, an industry consultancy.

In 2005, Shell held the No 5 spot in China behind PetroChina, Sinopec, Being Tongyi and Exxon. Shell is now the third-largest marketer of finished lubricants in China, with around 10 percent of market share, Kline said.

Sidestepping questions whether Exxon has any acquisition plans, Mcdermott would only say the firm is focusing on the high-end market with products of "high performance and high technology."

Mcdermott said 90 percent of Exxon's lubricant products sold in China are domestically made. The country's lubes market will continue to grow by seven to 10 percent over the next five years, Kline said.


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