PETRONAS Lubricants International Market Research Report

Background

Overview

PETRONAS Lubricants International (PLI) is the global lubricants manufacturing and marketing arm of PETRONAS, Malaysia's national oil corporation. Established in 2008, PLI offers a comprehensive range of high-quality automotive and industrial lubricants across more than 100 markets worldwide. Headquartered in Kuala Lumpur, Malaysia, PLI operates over 30 marketing offices in 28 countries, with regional offices in Kuala Lumpur, Beijing, Turin, Belo Horizonte, Chicago, and Durban.

Mission and Vision

PLI is committed to being a progressive energy and solutions partner, enriching lives for a sustainable future. The company focuses on conducting and growing its business in ways that positively contribute to society and the environment.

Primary Area of Focus

PLI specializes in the development, manufacturing, and marketing of automotive and industrial lubricants, including engine oils, functional fluids, and cooling liquids for various applications. The company also offers a range of car care products.

Industry Significance

As a subsidiary of PETRONAS, PLI leverages the corporation's extensive resources and expertise to establish a strong presence in the global lubricants market. The company's partnership with the Mercedes-AMG PETRONAS Formula One Team underscores its commitment to innovation and high-performance standards.

Key Strategic Focus

Core Objectives

Global Expansion: Increase the international portfolio to 60% of total business over the next decade, up from the current 40-50%.

Sustainability: Develop and market sustainable and environmentally friendly lubricant products, including bio-based hydraulic and UTTO fluids.

Specific Areas of Specialization

Automotive Lubricants: Engine oils for passenger vehicles, motorcycles, and commercial vehicles.

Industrial Lubricants: Functional fluids, cooling liquids, and car care products.

Key Technologies Utilized

Fluid Technology Solutions™: Advanced lubricants and functional fluids developed through PETRONAS' involvement in motorsports, particularly Formula One.

Primary Markets Targeted

Automotive Industry: Passenger vehicles, motorcycles, and commercial vehicles.

Industrial Sector: Various industries requiring high-performance lubricants and functional fluids.

Financials and Funding

Funding History

As a wholly owned subsidiary of PETRONAS, PLI's funding is integrated within the parent company's financial structure. Specific details regarding PLI's individual funding history are not publicly disclosed.

Recent Financial Performance

In 2024, PETRONAS reported a profit after tax of 55.1 billion ringgit ($12.47 billion), a decline from 80.7 billion ringgit in 2023. Revenue also decreased to 320 billion ringgit from 343.6 billion ringgit in 2023.

Intended Utilization of Capital

While specific allocations for PLI are not detailed, PETRONAS has indicated plans to invest strategically in upstream projects and international ventures, including a liquefied natural gas plant in Canada and upstream projects in Angola and Indonesia.

Pipeline Development

Key Pipeline Candidates

PLI is actively developing bio-based hydraulic and UTTO fluids through strategic partnerships, aiming to introduce sustainable and environmentally friendly lubricant products to the market.

Stages of Development

These bio-based lubricants are in the development phase, with ongoing research and testing to meet industry standards and customer requirements.

Target Conditions

The bio-based lubricants are designed to perform under various industrial conditions, offering high efficiency and reduced environmental impact.

Anticipated Milestones

Specific timelines for product launches are not publicly disclosed, but PLI is committed to advancing these products to market as part of its sustainability initiatives.

Technological Platform and Innovation

Proprietary Technologies

Fluid Technology Solutions™: Advanced lubricants and functional fluids developed through PETRONAS' involvement in motorsports, particularly Formula One.

Significant Scientific Methods

Research and Technology Centers: PLI operates research and technology centers in Italy, China, Brazil, the USA, and Malaysia, focusing on refining and enhancing Fluid Technology Solutions™.

Leadership Team

Key Executives

Giuseppe D’Arrigo: Group Chief Executive Officer

Lisa Chan: Head of Software Engineering and DevOps

Professional Backgrounds and Contributions

Giuseppe D’Arrigo: As CEO, D’Arrigo leads PLI's global operations, driving strategic initiatives and overseeing the company's growth and innovation efforts.

Lisa Chan: Chan heads the software engineering and DevOps teams, focusing on technological advancements and digital transformation within PLI.

Competitor Profile

Market Insights and Dynamics

The global lubricants market is experiencing steady growth, with a projected market size of $27.00 billion in 2025 and an expected compound annual growth rate (CAGR) of 4.54% from 2024 to 2031.

Competitor Analysis

Exxon Mobil (Mobil 1): Leading the market with a 9.20% share, focusing on e-fluids and advanced synthetics.

Shell (Rotella & Helix): Holding an 8.53% market share, expanding EV aftertreatment fluids.

BP (Castrol): With a 6.31% share, investing in digital service platforms.

Chevron (Havoline): Holding a 5.93% market share, emphasizing premium PCMO growth in Asia.

TotalEnergies (Quartz): With a 5.23% share, focusing on bio-based esters.

Petronas (Syntium): Holding a 4.57% market share, leveraging motorsport co-branding.

Strategic Collaborations and Partnerships

Mercedes-AMG PETRONAS Formula One Team: PLI serves as the technical resource, providing customized lubricants, fuels, and transmission fluids.

Quaker Houghton: In May 2025, PLI and Quaker Houghton formed a strategic partnership to provide industrial metalworking solutions in Malaysia and India.

Operational Insights

Strategic Considerations

PLI's strategic focus includes expanding its international presence, developing sustainable products, and leveraging technological innovations to enhance market competitiveness.

Competitive Advantages

Global Distribution Network: With operations in over 100 markets and more than 30 marketing offices worldwide, PLI has a robust distribution network.

Research and Technology Centers: PLI operates research and technology centers in Italy, China, Brazil, the USA, and Malaysia, focusing on refining and enhancing Fluid Technology Solutions™.

Strategic Opportunities and Future Directions

Strategic Roadmap

International Expansion: Increase the international portfolio to 60% of total business over the next decade.

Sustainability Initiatives: Develop and market sustainable and environmentally friendly lubricant products.

Technological Advancements: Leverage research and technology centers to innovate and enhance product offerings.

Future Business Directions

PLI aims to strengthen its position as a leading global lubricants company by focusing on international growth, sustainability, and technological innovation.