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Eneos, a Japanese company, will cease lubricants manufacturing at Yokohama in March 2028

Eneos Japan, the largest oil refiner in Japan, announced on Tuesday it would gradually stop production of lubricants, and certain petroleum products, at its Yokohama facility near Tokyo, by March 2028. However, they will look into moving lubricants to other facilities.

In a press release, the company stated that the decision was made after a thorough review of the refining landscape and the marketing landscape. This included a structural decline in the domestic demand for petroleum and the intensifying competition in Asia.

Eneos Holdings' Eneos unit said: "We have determined that it is urgent to restructure our production and supply systems in our manufacturing facilities."

Japanese refiners are consolidating their production facilities in order to meet the falling demand due to a shrinking population and an aging society.

The Yokohama factory, which started operations in 1922 has a production capacity of 126,000 kilolitres lubricants per year and 3,900 metric tonnes of grease. In January 2026, the company will begin reducing its output of lubricants as well as some petroleum products with added value.

Eneos, however, will consider relocating lubricants from Yokohama into its existing facilities. The company has no plans to reduce its lubricant production, a spokesperson for the company said.

A spokesperson for the company said that the restructuring was designed to boost the overall efficiency of production.

A spokesperson for the refiner said that the company has not yet decided whether it will continue to produce other products at its Yokohama facility, such as grease. (Reporting and editing by Tomaszjanowski)

(source: Reuters)