OREANDA-NEWS. Cosmo Oil Co., Ltd., along with TonenGeneral Sekiyu K.K. and its subsidiary, EMG Marketing Godo Kaisha, concluded a contract today for the consignment of the manufacture of lubricant products at the Cosmo Lubricants Chiba Plant to the EMG Marketing Tsurumi Lube Oil Blending Plant.

Although economic recovery has slowed the downturn in domestic demand for lubricants, the downward trend is likely to continue in the medium term, necessitating measures to ensure greater competitiveness. Due to these circumstances, the Cosmo Oil Group is promoting rationalization and further efficiency in all of its businesses and in all of the regions where it operates.

As part of these efforts, in its lubricants business in the Chiba area, the group has been discussing the structure of the Cosmo Lubricants Chiba Plant. As the TonenGeneral Group's Tsurumi Lube Oil Blending Plant is able to increase its operating rate, it was deemed advantageous to pursue this opportunity to achieve greater efficiency.

With the conclusion of this contract, the Cosmo Oil Group will close the Cosmo Lubricants Chiba Plant and restructure its supply system with the consignment of lubricant product manufacture. In addition, the TonenGeneral Group will expand the facilities at the Tsurumi Lube Oil Blending Plant to realize greater efficiency with the acceptance of the consignment of lubricant product manufacture.