SK Enmove is teaming up with U.S. oil giant HF Sinclair to expand its distribution in the North American lubricant market.
On August 19, SK Enmove held a signing ceremony at the SK Serin Building in Jongno-gu, Seoul, to establish a supply and distribution partnership for Group III lubricants in North America. The two companies had previously signed a long-term supply agreement on August 3.
Under this agreement, SK Enmove will supply HF Sinclair with high-quality Group III base oils for its lubricants and specialty products. HF Sinclair plans to produce its own lubricants using SK Enmove's YUBASE products and will also exclusively distribute YUBASE in certain regions of North America.
HF Sinclair, headquartered in Dallas, Texas, operates refineries in Kansas, Oklahoma, and New Mexico.
The partnership aims to enhance market competitiveness by combining SK Enmove's stable production capabilities of high-quality base oils with HF Sinclair's extensive sales network in North America.
Lubricants are essential materials in industries and automotive applications, reducing friction between parts and dissipating heat, with engine oil being a prime example. Base oils are the key raw materials for lubricant production.
Base oils are categorized into groups based on their raw materials and refining methods. Group III is classified as a high-quality base oil made from highly refined crude oil. Compared to Group I and II base oils, Group III has fewer impurities and a higher viscosity index, resulting in stable performance across a wide temperature range.
Recently, geopolitical risks in the Middle East have disrupted refinery operations, leading to supply shortages, particularly in the Group III base oil market.
SK Enmove exports and sells Group III base oils in over 40 countries worldwide, including the Americas, Europe, and Asia. The company has established production bases for Group III base oils in Ulsan, Spain, and Indonesia.
This agreement is expected to significantly expand SK Enmove's market access for Group III base oils in North America and strengthen its influence in the global market.
Kim Won-ki, President of SK Enmove, stated, "This agreement will secure a stable distribution channel in North America, further strengthening SK Enmove's business foundation in the region. By combining SK Enmove's reliable supply capabilities with HF Sinclair's extensive distribution network, we will provide a more stable product supply base to our North American customers."
SK Enmove is known for its premium base oils (YUBASE) and engine oil brand (ZIC) and currently operates as a corporate independent company (CIC) and a merged entity under SK On.
* This article has been translated by AI.
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