Kim Won-gi, president of SK Enmove (left), and Matthew Joyce, executive vice president and president of HF Sinclair's Lubricants and Specialties division, sign a Group III base oil supply and distribution agreement at SK Seorin Building in Jongno-gu, Seoul, on Wednesday. [SK Innovation]
Kim Won-gi, president of SK Enmove (left), and Matthew Joyce, executive vice president and president of HF Sinclair's Lubricants and Specialties division, sign a Group III base oil supply and distribution agreement at SK Seorin Building in Jongno-gu, Seoul, on Wednesday. [SK Innovation]

SK Enmove, the lubricants subsidiary of SK Innovation, announced Thursday it will expand its distribution in North America under a long-term supply contract signed with major US refiner HF Sinclair.

The two companies held a signing ceremony Wednesday at SK Seorin Building in Jongno-gu, Seoul, to formalize a supply and distribution partnership for Group III base oil in North America. HF Sinclair is a large refiner headquartered in Texas that supplies lubricants to more than 80 countries worldwide.

The ceremony was attended by SK Enmove President Kim Won-gi, SK Enmove Base Oil Business Division head Heo Jeong-uk, HF Sinclair Lubricants and Specialties Executive Vice President and President Matthew Joyce, and Vice President Leanne Cleland, along with other representatives from both companies.

Under the agreement, SK Enmove will supply premium Group III base oil products to HF Sinclair's Lubricants and Specialties division on a long-term basis. HF Sinclair will use SK Enmove's YUBASE base oil to manufacture its own lubricant products and will also serve as the exclusive distributor of YUBASE in select parts of North America.

The two companies plan to strengthen their market competitiveness by combining SK Enmove's stable, high-quality base oil production capabilities with HF Sinclair's North American sales network. Base oil is a key raw material for lubricants such as automotive engine oil, and supply shortages — particularly in the Group III segment — have persisted amid the ongoing conflict in the Middle East.

SK Enmove, which exports Group III base oil to more than 40 countries, plans to significantly expand its sales channels in North America. "This agreement will serve as an opportunity to secure a stable sales channel in North America and further strengthen SK Enmove's business foundation in the region," President Kim said. "By combining SK Enmove's reliable supply capabilities with HF Sinclair's extensive distribution network, we will provide North American customers with an even more stable product supply."

Heo Jeong-uk, head of SK Enmove's Base Oil Business Division, said the company's supply system — anchored by three production bases in Ulsan, Spain and Indonesia — was the key competitive advantage that made the partnership possible. "With demand for premium Group III base oil growing amid supply risks stemming from the Middle East, we will work with HF Sinclair to ensure a stable supply of world-class YUBASE products to customers in North America," he said.

Matthew Joyce, executive vice president and president of HF Sinclair's Lubricants and Specialties division, called the long-term supply agreement for SK Enmove's premium Group III base oil "an important milestone" for the business. "We will leverage our North American distribution network to expand the supply of YUBASE, and by combining SK Enmove's reliable supply capabilities and consistent quality with our own blending and technology expertise, we will deliver high-quality lubricant solutions that meet customer expectations," he said.


klee@heraldcorp.com