HD Hyundai Oilbank, the oil refining arm of South Korea’s HD Hyundai Co., is set to make its foray into the North American lubricants market. This move represents a strategic expansion for the company, in collaboration with its construction machinery affiliate, HD Hyundai XiteSolution Co.
The company announced its plan to supply 25 twenty-foot equivalent units (TEUs) of Hyundai XTeer brand lubricants annually to HD Hyundai XiteSolution, targeting the commercial vehicle market in North America. This venture positions HD Hyundai Oilbank to penetrate the world’s largest lubricants market, where Korean makers currently hold a minimal 0.1% share.
HD Hyundai XiteSolution, a key player in construction machinery, manages subsidiaries like HD Hyundai Construction Equipment Co. and HD Hyundai Infracore Co. This partnership is anticipated to significantly amplify HD Hyundai Oilbank’s global lubricants footprint.
The company’s international aspirations in the lubricants sector have been evident, with successful ventures into Qatar and Honduras in 2022, among other countries. The collaboration with HD Hyundai affiliates aims to further extend its lubricant supply to more overseas construction machinery companies.
Additionally, HD Hyundai Oilbank recently introduced Hyundai XTeer EVF, an electric vehicle-dedicated lubricant brand, joining the competitive EV lubricants market. This launch is part of a broader strategy to transition from a traditional petroleum and oil refining company into an eco-friendly energy enterprise. The company is diversifying into sectors such as blue hydrogen, white biotechnology, eco-friendly chemicals and materials, resource recycling, and lubricants.
Backed by a 17% stake from Saudi Aramco, HD Hyundai Oilbank had initially planned an IPO in 2022 but postponed it due to unfavorable conditions in the global IPO market. This strategic shift towards the North American market and sustainable energy reflects HD Hyundai Oilbank’s adaptive approach in a rapidly evolving industry.
