Japan’s largest oil refiner, ENEOS Corporation, has announced a big change in its operations, closing Yokohama lubricant production to drive innovation — the company will stop producing lubricants at its Yokohama plant by March 2028.

This decision is part of ENEOS’s plan to streamline its supply chain, cut costs, and stay competitive in today’s fast-changing market. The Yokohama facility has been a key part of ENEOS’s business for more than 100 years, producing engine oils, greases, and industrial lubricants for domestic and global customers.

So, why is ENEOS shutting down such an important plant? And what does this mean for the lubricant industry in Japan and worldwide? Let’s break it down in simple terms.

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A Century-Old Plant Nearing Its Last Chapter

The Yokohama plant, established in 1922, has been one of Japan’s leading lubricant production facilities. It produces over 120,000 kilolitres of lubricants every year and thousands of tons of grease, supplying everything from automotive engine oil to industrial cutting fluids.

But times are changing. Running a massive plant like this has become expensive, and Japan’s demand for lubricants is slowly going down. Rather than keep an old facility running at high cost, ENEOS is shifting production to other, more efficient plants.

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Why ENEOS is Halting Production

1. Declining Domestic Demand

Japan’s population is aging, car ownership is dropping, and industries are becoming more efficient. Modern engines and machines need less lubricant and have longer oil change intervals, which means lower demand overall.

2. Stronger Global Competition

ENEOS faces heavy competition from other Asian manufacturers who produce lubricants at lower costs. To stay competitive, ENEOS is focusing on making operations leaner and more efficient.

3. Strategic Restructuring

Under its Medium-Term Management Plan, ENEOS is reorganizing its supply network to cut costs and improve profitability. Shutting down Yokohama’s lubricant production is part of that plan.

4. Sustainability Goals

ENEOS is investing in eco-friendly lubricants and new technologies like its GX Series, made from 100% biomass-based base oils. Closing older facilities helps the company focus on modern, greener production elsewhere.

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Timeline of the Shutdown

ENEOS will not shut down overnight ( read ). The plan is gradual:

• 2026: Start reducing lubricant production at Yokohama.
• 2027: Slowly relocate production to other ENEOS facilities.
• March 2028: Complete shutdown of lubricant production at Yokohama.

This phased approach will help ENEOS keep its supply chain running smoothly while preparing its other plants to handle production.

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What About Grease Production?

ENEOS also makes grease at the Yokohama plant — used in industrial machinery, automotive parts, and construction equipment. The company has not yet confirmed whether grease production will also stop, but it is under review.

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Impact on People and Businesses

For employees, ENEOS is expected to offer relocation opportunities or reassignments to other plants. This will help avoid major job losses.

For local businesses in Yokohama, the closure might bring some economic slowdown, but because it is a gradual process, the impact may be easier to manage.

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Will Customers Be Affected?

According to ENEOS, customers should not face supply issues. The company will simply move production to other facilities and keep providing the same high-quality engine oils, industrial lubricants, and specialty fluids.

This move might even improve efficiency, helping ENEOS deliver better prices, faster supply, and more innovation in the future.

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Bigger Picture: The Global Lubricant Market

ENEOS’s decision is not an isolated case. The entire global lubricants industry is going through change:

• EV Growth: Electric vehicles require less engine oil, reducing demand for traditional lubricants.
• Eco-Friendly Products: Companies are investing in bio-based lubricants to meet environmental regulations.
• Efficiency: Production is being consolidated into fewer but more advanced facilities worldwide.

ENEOS is ahead of the curve with its focus on green lubricants, recycling technologies, and low-carbon production.

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RBM Oil Corporation’s Perspective

At RBM Oil Corporation, we closely follow such developments in the global lubricants industry because they directly impact customer demand and innovation trends. Our mission has always been to deliver high-performance lubricants, greases, and cutting oils that meet the latest industry standards.

ENEOS’s decision shows that the market is moving toward sustainability, efficiency, and innovation — values we also prioritize at RBM. We are investing in advanced formulations, building strong partnerships with suppliers, and offering eco-friendly solutions that help our customers reduce maintenance costs and achieve better performance.

As global players like ENEOS restructure, we remain committed to supporting industries across automotive, manufacturing, and heavy machinery with consistent quality and reliable supply.

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ENEOS’s Future Plans

Even as Yokohama shuts down, ENEOS is not scaling back its business — it is modernizing. The company is working on:

• Expanding premium lubricants for hybrid and electric vehicles
• Developing sustainable base oils from recycled resources
• Increasing its presence in growing Asian markets
• Supporting carbon-neutral goals with eco-friendly products

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Conclusion

The upcoming shutdown of Yokohama lubricant production by March 2028 is a major milestone for ENEOS. While it marks the end of a historic chapter, it is also a strategic move to stay competitive and future-ready.

For customers and partners, this means business as usual — but with a stronger focus on innovation, sustainability, and reliability. For the global lubricant industry, it is another sign that companies must adapt to changing demand, new technologies, and environmental priorities.

ENEOS remains committed to being a leader in the market, providing high-performance engine oils, greases, and industrial lubricants that meet the needs of a changing world.

Introduction

In today’s fast-changing world of automobiles and industries, the choice of lubricants is no longer a simple matter of cost.

With growing environmental concerns, rising fuel efficiency demands, and stricter emission norms, businesses and consumers are asking: “Which lubricant is better for the future—synthetic or mineral oils?”

As we move through 2025, this debate has become more relevant than ever. Synthetic lubricants are engineered for performance and sustainability, while mineral oils have long been trusted for their affordability and availability. But with industries moving towards eco-friendly and high-performance solutions, one question dominates the market: Will synthetic oils replace mineral oils as the new standard?

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What Are Mineral Oils?

Mineral oils are the most traditional type of lubricants. They are derived from refined crude oil and have been the backbone of the automotive and industrial sectors for decades.

Key Features of Mineral Oils:

• Affordable: Their biggest advantage is lower cost, making them popular among price-conscious markets.
• Widely available: Produced in bulk from crude oil, they are accessible worldwide.
• Good lubrication: Provide decent wear protection for engines and machines.

Limitations:

• Shorter lifespan compared to synthetics.
• Prone to oxidation and sludge formation.
• Break down at high temperatures.
• More frequent oil changes needed.

Mineral oils still hold a large market share in developing economies where cost is a primary factor. However, their performance limitations are being exposed as industries demand more efficiency.

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What Are Synthetic Oils?

Synthetic lubricants are man-made oils produced through chemical engineering. Instead of being simply refined from crude oil, they are scientifically designed to deliver superior performance in extreme conditions.

Types of Synthetic Oils:

• PAO (Polyalphaolefin): Excellent stability, used in automotive and industrial oils.
• Esters: Provide high lubricity and are often used in aviation.
• Synthetic blends: A mix of mineral and synthetic oils, balancing cost and performance.

Key Benefits of Synthetic Oils:

• High thermal stability: Resist breakdown at high and low temperatures.
• Longer drain intervals: Reduce the frequency of oil changes, saving time and cost in the long run.
• Better wear protection: Extend the life of engines and machinery.
• Fuel efficiency: Reduce friction, improving mileage and energy efficiency.
• Eco-friendly: Lower emissions and align better with sustainability goals.

In short, synthetics are not just lubricants; they are performance enhancers.

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Synthetic vs. Mineral Oils: A Head-to-Head Comparison

FEATURE	MINERAL OIL	SYNTHETIC OIL
Cost	Affordable upfront	Higher upfront cost, long-term savings
Performance	Adequate for basic needs	Superior performance in all conditions
Durability	Requires frequent changes	Long drain intervals
Temperature range	Limited stability	Performs in extreme hot/cold conditions
Environmental impact	Higher emissions, sludge formation	Cleaner, greener, lower emissions
Applications	Conventional vehicles, low-demand machinery	High-performance engines, EVs, heavy-duty equipment

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2025 Market Trends in Lubricants

The global lubricant market is undergoing a major transformation:

Shift Towards Synthetic and Bio-Based Oils:
By 2025, synthetic lubricants are expected to grow at double the rate of mineral oils, thanks to consumer awareness, industrial demand, and sustainability mandates.

Industrial Growth:
Manufacturing, construction, and mining sectors are demanding high-performance lubricants that reduce downtime and extend machinery life.

Automotive Evolution:
With the rise of electric vehicles (EVs), the demand for specialized fluids (thermal management fluids, coolants, greases) is skyrocketing. Mineral oils cannot meet these requirements.

Regulatory Pressure:
Governments are imposing stricter environmental and recycling laws. From 2024, India introduced Extended Producer Responsibility (EPR) for used oils, requiring companies to recycle and reduce environmental impact. This is pushing the market towards synthetics and eco-friendly alternatives.

Consumer Awareness:
Vehicle owners are realizing that while synthetic oils are costlier upfront, they save money in the long run by extending engine life and reducing fuel consumption.

Simply put, synthetics are the future of lubricants, while mineral oils will slowly lose relevance in premium and industrial segments.

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What It Means for Businesses and Consumers

For Industrial Buyers

Efficiency: Synthetics reduce friction and improve machinery performance.

Cost Saving: Though expensive initially, they save money by extending maintenance cycles.

Sustainability: Meet corporate ESG goals and government norms.

For Automotive Users

Better Protection: Keeps engines cleaner, runs smoother.

Fuel Economy: Reduces fuel consumption in both petrol and diesel engines.

Longer Oil Life: Fewer oil changes = lower maintenance cost.

For Lubricant Manufacturers

The shift demands continuous innovation in formulations.

Companies must invest in bio-based, biodegradable lubricants.

Partnerships for used oil collection and rerefining are now a necessity.

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RBM Oil Corporation’s Perspective

As India experiences this transformation, RBM Oil Corporation, headquartered in Pune, Maharashtra, is at the forefront of supplying reliable, high-quality lubricants. Since its inception in 2016, RBM has built a strong reputation as a manufacturer, exporter, importer, and trader of:

• Engine Oils (Gusto 15W40 and more).
• Hydraulic Oils (EP series).
• Cutting Oils and Process Oils.
• Industrial Greases and Specialty Oils.

Aligning with the Future

RBM is well-positioned to expand its portfolio in synthetic and bio-based lubricants, helping industries transition smoothly.

With India’s EPR norms, RBM can become a leader in oil recycling and circular practices.

Its strategic location in Maharashtra—an industrial hub—gives it an edge in catering to automotive, construction, and manufacturing sectors.

RBM’s commitment to quality, performance, and sustainability ensures it remains relevant in the synthetic-dominated future of lubricants.

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Conclusion

The debate of synthetic vs. mineral oils is tilting strongly in favor of synthetics in 2025. While mineral oils will still find a place in cost-sensitive markets and older machinery, the future belongs to synthetic and bio-based lubricants.

Synthetic oils offer unmatched performance, efficiency, and sustainability.

Mineral oils will gradually decline as industries and consumers demand higher standards.

Lubricant makers must embrace innovation, sustainability, and recycling to remain competitive.

For businesses like RBM Oil Corporation, this is not just a challenge but a golden opportunity to lead the change. By focusing on synthetic and eco-friendly lubricants, RBM and similar companies can play a pivotal role in shaping the future of India’s lubricant industry.

In 2025 and beyond, synthetic lubricants will dominate—driving performance, efficiency, and sustainability in every sector.

Introduction

India is undergoing a remarkable transformation and energy diversification in its energy sector. With rising fuel demand, volatile crude oil prices, and global pressure to reduce carbon emissions, the country has put biofuels and energy diversification at the heart of its long-term strategy. From ethanol blending in petrol to biodiesel production, these policies are reshaping not only the fuels market but also allied industries—including the lubricant sector.

For lubricant makers, this transition presents both challenges and opportunities. As traditional petroleum-based energy sources give way to renewable and bio-based alternatives, lubricants must evolve to meet new performance standards, environmental regulations, and sustainability goals.

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India’s Biofuels and Energy Diversification Strategy

India has set ambitious goals for its biofuel adoption and overall energy diversification:

Ethanol Blending: The government has targeted 20% ethanol blending in petrol by 2025, an initiative expected to save around US$4 billion annually in crude oil imports. Ethanol derived from sugarcane, rice, wheat, and corn is being integrated rapidly into India’s fuel mix.

Biodiesel Push: Under the National Biodiesel Mission, India aims to replace up to 20% of diesel with biodiesel. Feedstocks such as jatropha and used cooking oil are being explored, although adoption has been slower than ethanol.

Financial Incentives: The government provides subsidies, financial support, and tax reliefs to encourage private investment in ethanol and biodiesel production.

Energy Diversification: Beyond biofuels, India is promoting solar, wind, hydrogen, and natural gas as part of its strategy to reduce dependence on imported crude oil.

Together, these measures are laying the foundation for a cleaner, more self-reliant energy ecosystem.

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Impact on Energy and Oil Demand

India’s energy demand is rising sharply due to industrial growth, urbanization, and infrastructure expansion. However, biofuel adoption directly affects fossil fuel consumption and crude oil imports.

Reduced demand for crude oil means more stability in India’s energy bills and less exposure to global oil price shocks.

Biofuel integration alters the demand for base oils, additives, and fuel-compatible lubricants.

Diversification into alternative energy sources reshapes the industrial landscape, creating demand for specialized lubricants in solar, wind, and EV sectors.

This evolving energy matrix means lubricant manufacturers must keep pace with new fuel types, new engines, and sustainability mandates.

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Implications for Lubricant Makers

Market Outlook

India’s industrial lubricant market is valued at approximately US$7.25 billion in 2024 and is projected to reach US$9.22 billion by 2030, with a CAGR of around 4.3%. Growth is driven by construction, automotive, mining, and power generation. However, biofuel adoption will transform the way lubricants are formulated, marketed, and regulated.

Shift Toward Sustainable Lubricants

Eco-friendly Solutions: With biofuels gaining traction, there is rising demand for biodegradable and low-toxicity lubricants that reduce environmental impact.

Synthetic Lubricants: These offer higher performance, lower emissions, and compatibility with modern engines that run on ethanol-blended fuels.

Bio-based Lubricants: Derived from vegetable oils, they align with India’s broader clean energy transition.

Extended Producer Responsibility (EPR)

From April 2024, India extended EPR obligations to used oils, requiring lubricant makers to collect and recycle a percentage of the oil they sell.

Initial target: 5% collection in 2024–25.

Rising gradually to 50% by 2030–31.

Although India has nearly 1 million tons of rerefining capacity, actual output in 2022 was only 27 kilotons, showing massive room for growth.

This means lubricant manufacturers must invest in collection networks, recycling partnerships, and circular business models to remain compliant and competitive.

Innovation and Customization

EV Lubricants: As electric mobility expands, demand for specialized coolants, greases, and thermal management fluids will grow.

Industrial Solutions: Heavy machinery, mining, and manufacturing sectors require lubricants that perform under extreme conditions while meeting sustainability norms.

Digital Lubrication: IoT-enabled monitoring and predictive maintenance are revolutionizing how lubricants are used and serviced.

Key Challenges

Raw Material Volatility: Fluctuating crude oil prices impact base oil and additive costs.

Technical Awareness Gap: Many end-users lack knowledge of advanced lubricants, slowing adoption.

Regulatory Pressure: Stricter environmental norms require continuous R&D investment.

For lubricant makers, adapting to this dynamic environment is not optional—it is essential for survival and growth.

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The Role of RBM Oil Corporation

RBM Oil Corporation, established in 2016 and headquartered in Pune, Maharashtra, has positioned itself as a leading manufacturer, exporter, importer, retailer, and trader of base oils, automotive lubricants, industrial oils, and greases. The company’s diverse portfolio includes:

Engine oils (e.g., Gusto 15W40).

Hydraulic oils (e.g., EP68).

Cutting and process oils.

Specialty greases and gear oils.

How RBM Connects with India’s Energy Transition

Eco-Friendly Expansion: As India moves towards renewable energy, RBM has the opportunity to expand into bio-based and biodegradable lubricants, aligning with the nation’s sustainability goals.

EPR Readiness: With used-oil recycling mandates in place, RBM can build collection partnerships to reinforce its green credentials.

Strategic Location: Being based in Maharashtra—one of India’s industrial hubs—positions RBM to cater to high-growth markets across automotive, manufacturing, and power sectors.

Innovation Potential: By investing in R&D for advanced formulations, RBM can strengthen its brand as a forward-looking, customer-centric lubricant provider.

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Future Outlook and Conclusion

India’s biofuel and energy diversification journey is more than just a policy—it is a paradigm shift. For the lubricant industry, it signals a future where:

Bio-based and synthetic lubricants will dominate.

Circularity through EPR will become standard practice.

Digital and smart lubrication solutions will be the norm.

Customer education will play a vital role in adoption.

Lubricant makers who embrace this transformation will not only stay competitive but also become key enablers of India’s sustainable industrial growth.

For companies like RBM Oil Corporation, this is the perfect moment to innovate, diversify, and reinforce their commitment to quality and sustainability. As India accelerates its clean energy transition, lubricant makers have a golden opportunity to grow alongside the nation’s progress.