In 2013, Royal Dutch Shell announced that it expects China to replace the United States as the largest lubricants market in 2015. In order to take the lead in the Chinese lubricants market, Shell established a new lubricant production line in Tianjin in 2012, with an annual production capacity of 300,000 tons.
If we add the annual capacity of 200,000 tons that we can continue to expand in the future, the total capacity of this newly-built lubricating oil plant will reach 500,000 tons per year, which will be Shell’s largest existing lubricant plant and will become the largest in the world. One of the lubricants blending plant.
Shell estimates that by 2020, the demand for lubricants in the Asia-Pacific region will account for more than half of global demand, and half of the increase in demand will come from China.
Executive Vice President, Global Business Business, Shell, Downstream Mark. Gainesboro said that the capacity of the Tianjin New Lubricant Factory has been ahead of schedule to anticipate China's potential future growth in the lube market.
The plant will be commercialized in 2015. Shen Jian, Shell's Managing Director of Lubricants in China and Hong Kong, said that the new plant will have the ability to produce the world's most advanced products, and high-end lubricants will help owners improve fuel efficiency.
With the completion of Shell Lubricants New Plant in Tianjin, Shell Lubricants is increasing its presence in North China. Previously, Shell's six lubricants plants in China were mostly located in Zhangpu, Zhejiang and Zhuhai, Guangdong, with a total capacity of 1.5 million tons.
Shell's new plant in Tianjin is mainly aimed at the market in North China, after it had already established a lubricant oil blending plant in Tianjin, but the annual production capacity was only 200,000 tons. The start of the new plant will make Tianjin become Shell's only two in China. The city of Lubricants Blending Plant became Shell's largest lubricant base in China.
mark. Gainesborough said that the establishment of a new factory will help Shell closer to users. In the future, Shell will rely on the convenient logistics of Tianjin Nangang Industrial Zone to achieve product coverage in North China and even Northeast China markets.
After the completion of the new plant, the strategic focus of Shell's lubricants market in China will no longer be limited to the South.
In the past few years, the number of motor vehicles in China has grown rapidly, and the demand for lubricants has steadily increased. Each lubricant manufacturer has increased its layout in the lubricants sector.
Earlier this year, Shell and South Korea’s Hyundai Petroleum signed a conditional joint venture agreement to develop, construct and operate a base oil production plant at the Korean refinery Seosan, which will reduce the distance with Nangang's blending plant and reduce Shell Lubrication. Import cost of oil feedstock.
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