KUALA LUMPUR (March 20): Hextar Oiltech Sdn Bhd, a 60%-owned subsidiary of Hextar Global Bhd (KL:HEXTAR), has been appointed as an exclusive distributor of Petromin’s premium lubricant in Malaysia.

In a filing with Bursa Malaysia on Thursday, Hextar Oiltech said it has entered into a legally binding distribution agreement with Technolube LLC, a subsidiary of Saudi-based Petrolube Group for the distributorship.

Under the terms of the agreement, Hextar Oiltech will be responsible for stocking, trading, distributing, and selling Technolube's products in Malaysia.

The company is required to maintain sufficient stock for at least 60 days and adhere to Technolube’s policies and safety standards, as well as achieve a minimum of 90% of its annual sales target to avoid the risk of termination.

According to its bourse filing, the agreement will be effective for three years, running from March 19, 2025 to March 19, 2028.  

The agreement is not automatically renewable and any renewal will require a new agreement between the parties.

Technolube, incorporated in the United Arab Emirates, is an exporter of lubricant oils. 

Hextar Oiltech, established in Malaysia on Feb 18, 2022, specialises in the manufacturing and trading of lubrication oils, oil-related products, and liquid solutions for both construction and household applications.

Hextar Global sees Malaysia's lubricant oil market experiencing dynamic growth in 2025, fuelled by technological advancements, strategic industry partnerships and shifting consumer demand for high-performance lubricants.

“As of 2025, Malaysia's lubricant oil market continues to experience growth, influenced by developments in both automotive and industrial sectors, with vehicle sales volume anticipated to increase due to factors such as lower interest rates for car loans and the introduction of new vehicle models, including Electric Vehicles (“EVs”),” it added.

At Thursday’s closing bell, Hextar Global closed half a sen or 0.6% lower at 88 sen, valuing the group at RM3.47 billion.