HONG KONG-BASED Feoso group, which has over 40 years' experience in the petroleum and energy-related industry, has expanded its presence in Malaysia with the setting up of a second plant.

Managing director Brandon Liu said the group had great confidence in the country, particularly its port development, which would augur well for its continued growth and expansion in the region.

Feoso's second plant, a RM25mil lubricant blending facility known as Far East Oil Terminal Two (M) Sdn Bhd, is located in Westport near Klang.The new plant is touted as the largest independent lubricant blending plant in the country.

"I'm very confident in our investment here and hope to make our fortune here," Liu said at the plant launch by Transport Minister Datuk Seri Chan Kong Choy yesterday.

"We view Malaysia as an ideal location for a regional manufacturing, outsourcing and customer service hub."It (Malaysia) is a cost effective base," he said.

The latest plant has an annual blending capacity of 60,000 tonnes and produces four major types of lubricants - automotive, industrial, marine lubricants and transformer oil.

The new plant also provides a range of services like repacking of synthetic oil, brake fluids, gases and cutting oil and a comprehensive range of shipping services including oil trading and warehousing.

The Feoso group set up its first plant in Malaysia under Far East Oil Terminal One (M) Sdn Bhd some 10 years ago in Pasir Gudang, Johor.

The first plant had a 210,000 cu m capacity storage terminal.

Liu said the Malaysian plants, together with Feoso group's offices and other plants in Hong Kong, China and Singapore, would enable the group to serve its clients more effectively.

He said the group was working out details for plans to expand its investment here. Feoso also planned to relinquish some stakes in the second terminal to local parties, he added.