On January 21, 2011, the launching ceremony of the Malaysian National Petroleum Corporation (hereinafter referred to as "Ma Petroleum") China Market, one of the world's top 500 companies, was held in Weifang, Shandong Province. Since 2004, PetroChina’s lubricant business first entered China. However, the market performance has remained stagnant for the next seven years. In 2011, PetroChina began to adjust its global strategy and the Chinese market was used as a new performance pillar. In order to change the long-term sales predicament, PetroChina took advantage of its raw materials to acquire a private factory in Weifang, Shandong, and sought a curve. With the large investment in capital, technology and equipment, PetroChina intends to create a model base integrating R&D, production and sales as a bridgehead to the Chinese market. Shandong is the country with the most concentrated oil refining and chemical production capacity. It used to be the country's largest oil company, and foreign capital mergers and acquisitions is still the first time. Curve entry “In 2011, the global focus of the petroleum oil business will be shifted from Europe and the United States to China.†On January 21, 2011, at the launching ceremony of China operations, Hou Junfu, deputy general manager of Shandong Petroleum Co., Ltd., told reporters that “the future Chinese market will become The main growth point of the horse oil lubricants business." Hou Junfu explained that Ma Petroleum has been focusing its global strategy on Europe and the United States. The Chinese market has not invested too much. However, PetroChina set the top 5 target for the lubricants business in 2015. This will require borrowing from the high growth of Asian markets such as China and India. Coupled with the increasingly saturated market in Europe and the United States, Ma Petroleum decided to fully transition to China in 2011. In recent years, the sales of lubricants in China have grown rapidly with the rapid development of the auto market. National Bureau of Statistics data show that from January to September 2010, China's lubricant production reached 6.3 million tons, once again set a new record. In fact, as early as 2004, PetroChina first introduced lubricants to the Chinese market, and set up PetroChina Trading (China) Co., Ltd. in Shenzhen. Lubricants were directly distributed to the Chinese market through the company's imports. However, within 7 years after that, the sales revenue of PetroChina in China was always less than RMB 100 million, which also affected the investment of other businesses in China. An industry insider revealed that Ma Petroleum is in the same level as Mobil and Shell in the US and Europe, and has a higher market share and higher product profits. The resistance to exploiting the Chinese market is due to the resistance of local oil giants. On December 22, 2010, PetroChina invested 198 million yuan in the formal acquisition of Shandong Weifang Shengmali Lubricating Oil Co., Ltd., and established Mayou Lubricants (Shandong) Co., Ltd. This is the first M&A project of PetroChina in China. It is also the first time that foreign companies have acquired petrochemical companies in Shandong. With an annual production capacity of up to 100,000 tons and a sales income of 300 million yuan in 2010, San Ma Li is the second largest manufacturer of private lubricants in the country. Previously, Ma Petroleum established a global headquarters for lubricants with the acquisition of a lubricants plant in Turin, Italy. Today, PetroChina seeks to enter the Chinese market through M&A curves. Hou Junfu introduced that PetroChina has invested an additional US$100 million to introduce a full set of technology and production equipment. The Shandong plant is expected to start production in June this year. In the next three years, PetroChina will invest US$1 billion in Weifang, Shandong, and upgrade its production capacity to 200,000 tons, creating a world-class lubricant model factory. It is reported that PetroChina will also invest 200 million yuan in Weifang Port to build 100,000 tons of lube oil logistics park. Channel sinking At present, the high-end lubricants market is occupied by 60% of the market share of multinational giants such as Mobil and Shell, while the low-end market is controlled by local companies such as Kunlun and Great Wall. Liu Xianglu, the director of China Petroleum Marketing, knew that Ma Petroleum could not compete with these rivals in the short-term, regardless of the high-end or mid-market. However, according to China's market plan, within the next three years, PetroChina will squeeze into the top three. In 2011, the sales revenue of lubricants will be 280 million yuan, which is 2.8 times that of 2010. As a latecomer, how to enter the most competitive mid-to-high-end market has become the biggest test of the current oil and gas of Malaysia. Liu Xianglu believes that at present, whether it is a multinational company or a local rival, the market is only laid to prefecture-level cities. As a latecomer, Ma Petroleum will sink its market channels into the county-level market. Today, the number of high-end cars in the country is increasing rapidly, and the market space at the county level is growing. However, he also admitted that there are a large number of county-level markets, and the manpower and capital costs for channel investment will be two or three times higher. However, he believes that such investment is very valuable in the long run. In 2011, PetroChina plans to invest more than 20 million yuan in sales channels in China, and the dealership team will increase from 400 to 1,400. Rapidly expanding sales network will pose severe challenges to the newly formed team management. As for how to achieve multiplied task indicators and digest rapid expansion of production capacity, Hou Junfu, deputy general manager of PetroChina, pointed out that with decades of development, Ma Petroleum has matured in various fields such as technology, market, and R&D. At the same time, Ma Petro has the advantage of choosing a factory in Shandong, where there are three major automakers: China National Heavy Duty Truck, Weichai, and Futian, especially the latter two are with Wei Ma and Weifang. PetroChina can directly connect with corporate customers bypassing the end market. Prior to this, when meeting with Shandong Province Governor Jiang Daming, Petroleol's President Belezini made it clear that the company's main high-end products are just suitable for its support. He very much hopes to reach cooperation with the above three auto factories. Only the Weichai household may bring several hundred million yuan of sales revenue to the company. Hou Junfu said that the establishment of a factory in Shandong is only the first stop of the entry of Ma Petroleum into China. The Ma Petroleum business involves all aspects of the entire oil industry chain. Investment in other businesses in China is also brewing. Galvanized Barrel Drum,Metal Spinning Iron Products,Custom Steel Cone,Trumpet Brushed Table Leg Shaoxing Hui Da Metal Products Factory , https://www.syhdmetal.com