Shell Lubricants pushes forward with strategic investments in the East

Shell (China) Limited is planning to build a world-scale lubricants blending plant in South China to meet growing demand in the region. The plant will have a capacity of 200 million litres per year initially, increasing to 400 million litres, making it one of the top three lubricants blending plants in the Shell lubricants network worldwide.



Official ground-breaking for the plant is taking place today (22 June, 2007) near the city of Zhuhai, in Guangdong Province, and commercial operation is expected to begin in 2009. The plant’s South China location means it will be ideally placed to supply consumer, transport, industrial and marine lubricants to one of the major growth regions in the country.



David Pirret, EVP Shell Lubricants, said: “This project represents delivery of Shell’s strategy of more upstream and a profitable downstream business by focusing investment in growth markets. China is the fastest growing lubricants market in the world and our second largest market by volume after the US. By investing now in new, world-scale production capacity, we are well positioned to meet the future lubricants needs of customers in this thriving region.”



In addition to the new blending plant, Shell is deepening its commitment to the region with a series of expansions at existing lubricants plants. Most significantly, it will double capacity at its Tsing Yi lubricants blending plant in Hong Kong to 120 million litres per year - and double employee numbers.



Capacity at its Tianjin (Beijing) and Zhapu (Shanghai) blending plants in China will also increase by up to 20%, enhancing the product portfolio. And over the next 12 to18 months, Shell will boost capacity at its grease plants in Thailand, the Philippines and Singapore - to meet the growing demand for specialist industrial lubricants in the region.



Shell is already the largest international lubricants supplier in Asia by sales volume. It is the number one international energy business in terms of market share in China, Thailand and the Philippines and the leader in brand preference with motorists in China, Malaysia, the Philippines, Singapore and Thailand.



David Pirret said: “Shell Lubricants are achieving strong volume growth in established markets such as Thailand and Malaysia and in developing markets such as China and Indonesia.



“Combined with our historical links with the region, leading-edge technology, trusted brands and customer focus, this latest series of investments reinforces our industry leadership and puts us in a stronger position to capitalise on the potential across the region. In short, they take our lubricants business in the region to a new level.”