28 June 2012 03:57 [Source: ICIS news]
SINGAPORE (ICIS)--Global demand for Group III base oils is expected to rise over the next few years as new engine specifications are announced, according to a northeast Asian supplier on Thursday.
The constantly shifting requirements for automotive engine oil specifications will lead to higher demand for lubricants that allow passenger car engines to have longer drain intervals, better fuel efficiency and tougher emission control, said Steve Kim, business development manager with South Korean producer SK Lubricants.
"This comes as the global economy grows, which will subsequently lead to higher vehicle numbers," Kim added.
Around 85% of Group III base oils are used in the manufacture of automotive oils or lubricants.
"The global Group III base oil market will be the fastest-growing sector among base oil groups as these newer specifications are introduced," Kim said.
SK Lubricants, a major Group III base oil producer, is expected to start up a 13,300 bbl/day plant in ?xml:namespace>
"SK Lubricants foresees the Group III base oils market as optimistic and will continue expanding its base oil capacity to keep our commitment to customers," Kim said.
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