Repsol and the Korean company SKL laid the first stone of SKSOL's next generation lubricants plant, a joint venture in which both firms have holdings. The plant, located in Cartagena, will entail investment of over 250 million euros and will be operational in 2014.

Repsol’s Executive Director of Business Units, Nemesio Fernández-Cuesta, and Executive Director of the Industrial Area and New Energy, Josu Jon Imaz, attended the event on behalf of Repsol. Representing SKL were Chairman and Chief Executive Officer, Kwan Ho Choi, and Vice Chairman, Yea Sun Youn, accompanied by SKSOL's Executive Director, José Sancho. Also present were the Korean Ambassador in Spain, Dae-sung Ho, the President of the Murcia Region, Ramón Luis Valcárcel, the President of the Regional Assembly, Francisco Celdrán, and the Mayor of Cartagena, Pilar Barreiro.

The plant, located next to the Repsol refinery in Cartagena, will use products from the Repsol industrial complexes in Tarragona and Cartagena.

The project will occupy 35,000 square metres, with an additional 55,000 square metres for the port storage area. These new installations will be built according to best international engineering practices and following the most exacting environmental and safety principles.

Next generation lubricants for Europe

SKSOL will focus production on next generation lubricants which fulfil Euro VI standards on environmental requirements. This type of lubricant reduces fuel consumption and environmental impact.

Production at the new plant will be primarily aimed at the European market, resulting in reduced dependence on imports of Group 3 Lubricant Base Oils used for the production of next generation lubricants. It will have the capacity to meet 20% of worldwide demand and 40% of European demand.

During the construction period, an average of 350 people will be employed; this figure will rise to 900 during peak work periods. Once in operation, the new plant will generate a combined total of 160 direct and indirect jobs.

The construction phase will favour the rating of regional and local businesses. To date, some 260 companies from the area have been rated for the Cartagena refinery expansion project, launched last April. Over the course of the works, 60 contracts will be generated allowing around 100 companies to get involved.

Strategic project for the regional government

The new plant is classed a strategic project for the regional government due to its significant effects on the region’s economic output. The plant is expected to represent 1.9% of the region’s gross domestic product.