PT Federal Karyatama is Indonesia’s largest manufacturers and marketers of motorcycle lubricants
With the goal to enable expansion in an important international market, ExxonMobil has decided to purchase PT Federal Karyatama (FKT), one of Indonesia’s largest manufacturers and marketers of motorcycle lubricants.
The Federal Oil brand and a 700,000 barrel per year blending plant in Cilegon, Indonesia include the acquisition. ExxonMobil will acquire 100 percent interest in the company from PT Mitra Pinasthika Mustika Tbk. and its affiliate, pending shareholder, government and regulatory approvals. The transaction is anticipated to close in the third quarter of 2018 or even earlier.
Bryan Milton, president of ExxonMobil Fuels & Lubricants Company, said “Asia Pacific is one of the fastest growing lubricants markets in the world. This acquisition, combined with our existing premium Mobil lubricant brand, will help us continue to grow and better serve customers in Indonesia. The knowledge and experience of FKT employees and distributors will play a key role in achieving that objective.”
“Driven by strong economic development and an expanding middle class, Asia is expected to represent 70 percent of global lubricant demand growth over the next decade. We continue to make strategic investments across our lubricant value chain to ensure ExxonMobil is well positioned to meet increasing global lubricant demand,” said Nigel Searle, senior vice president of ExxonMobil Lubricants. PWKD03052018