Unioil inks deal with Yokohama Tire

MANILA, Philippines - Unioil Petroleum Philippines Inc. has inked a P20-million supply contract for industrial and marine oil to Yokohama Tire Philippines Inc., one of the world’s biggest tire manufacturing firms.

Yokohama’s Philippine plant is located at the Clark Freeport Zone in Pampanga.

Unioil general manager Chito Medina-Cue Jr. said the P20-million contract is only an initial arrangement as he expects the amount to increase as production and export volumes rise.

Unioil and Yokohama have a long history of partnership that started in 1997 with the supply of industrial oil and lubricants.

Last year, Unioil also inked a contract with Silver Tire Traders Inc., a local lube distributor based in Gen. Santos City, as the company’s distributor of automotive lubricants in North and South Cotabato.

The lubricants distribution contract with Silver Tire would boost Unioil’s revenues by P24 million a year.

The company is also targeting 10 new lubricant distributors in Southern Tagalog, Bicol, Northern Luzon, Western Visayas and Mindanao areas this year.

The latest contract is part of Unioil’s ambitious expansion program that would involve not only the construction of additional retail and service stations but also its heightened participation in the lubricant and industrial oil market.

The independent oil player carries a wide range of automotive and industrial lubricants that cater to retailers and resellers as well as industrial and commercial clients.

As a major supplier of base oil in the local market, Unioil is currently capitalizing on its lead in the market by increasing its product lines for base stock and process oils. These are sold in bulk volume to other lubricant blenders and manufacturers.

The planned expansion of the company’s lubricants business is on top of the construction of six service stations it is targeting to put up within the year, mostly in Metro Manila and neighboring provinces. This expansion would cost over P90 million.

Unioil presently operates 40 retail and service stations, located mainly in Luzon.   – Ted Torres