http://www.bworldonline.com/BW011708/content.php?id=044


BusinessWorld: Corporate News
Thursday, January 17, 2008

Vol. XXI, No. 119
MANILA, PHILIPPINES
‘S-9’ motor oil from coconut to be sold on international mart

— CQF



DAVAO CITY — A locally developed motor oil from coconut, dubbed ‘S-9’, is being planned for international market with a German entrepreneur taking charge of its marketing drive.

BW File Photo


Peter Reger, Chun Hae Food Processor marketing consultant, said the company is now looking at breaking into the international market considering its product’s advantages to users.


"This motor oil is good for tropical countries like the Philippines considering that it reduces the engine temperature significantly," said Mr. Reger, who noted that the company was named after the Korean who developed the oil.


In its product primer, the company claimed S-9 could reduce fuel consumption by 45% and smoke emission by 95%. It also said it could lengthen change oil interval by up to 20,000 kilometers, lessen metal wear in engines, increase power and reduce engine temperature.


"The multiplier effect should bring down or stabilize the basic cost, the primer added.


It also said that the product has been tested in 400 vehicles since 2005 and has been blended with commercially available motor oils.


Reynerio F. Mangio, managing director of Chun Hae Food Processor, said at present, the company can produce about 5,000 liters a month with about 500,000 tons of coconut at its pilot plant in the Matina Pangi district of this city."


"Our production is still very small considering that we would go on a marketing binge," Mr. Mangio told BusinessWorld.


He said the company is looking at increasing production when its market acceptability gets higher.


Mr. Reger said he is also helping the company find an industrial partner or a funding agency willing to help it expand.

"Maybe we can also apply with the Enterprise Challenge Fund," he said, referring to a funding facility put up by the Australian government for projects in Mindanao.