GEA, L&T to build Malaysia plant

The plant, to be completed by the middle of 2008, would produce 6,500 barrels per day of mostly Group III base oil, a component used in automotive and industrial lubricants.

German's GEA Group and India's largest engineering and construction firm, Larsen & Toubro Ltd, will build a base oil plant for lubricants in Malaysia, the firm that awarded the contract said on Tuesday.

HT Image

The plant, to be completed by the middle of 2008, would produce 6,500 barrels per day of mostly Group III base oil, a component used in automotive and industrial lubricants, Malaysian state oil firm Petronas said.

"The products will be marketed to the domestic as well as international markets," Petronas said in a statement.

Petronas said the construction job was awarded through open bidding exercise to a group made up of GEA-owned Lurgi AG of Germany and Lurgi (Malaysia) Sdn Bhd, Larsen & Toubro Ltd and L&T-ECC Construction (Malaysia) Sdn Bhd and Malaysia's Kejuruteraan QKS Sdn Bhd. It gave no value for the contract.

Petronas said the plant would be Malaysia's first and would be located within its refinery complex in the southwestern state of Malacca.