Exxon Mobil Corp. has agreed to purchase PT. Federal Karyatama, or FKT, an Indonesian firm that manufactures and markets motorcycle lubricants, the company said April 29.
The acquisition includes the Federal Oil brand and a 700,000 barrel per year blending plant in Cilegon, Indonesia. Exxon will acquire a 100% stake in FKT from PT Mitra Pinasthika Mustika Tbk and its affiliate. The company expects the transaction to close in the third quarter.
Founded in 1988, FKT has a distribution network supported by approximately 40 dealers, 3,200 Federal Oil Centers and more than 10,000 retailers around Indonesia.
Nigel Searle, senior vice president of ExxonMobil Lubricants, said the company will continue making strategic investments in its lubricant value chain to ensure that it is well positioned to meet increasing global lubricant demand. Searle said that Asia is expected to represent 70% of global lubricant demand growth over the next decade due to strong economic development and an expanding middle class.
