16 November 2012

Shell to build lubricants blending plant in Indonesia

- Plant due to be located at the Marunda Center 
- Expected capacity of 120,000 tonnes per year 

14 November 2012 - Shell announced its plan to build a new lubricants blending plant in Indonesia, with construction starting after completion of a tender process over the coming months. The plant is due to be located at the Marunda Center, just north of Jakarta, and will produce a range of high quality consumer, transport, industrial and marine lubricants. It is expected to have a capacity of 120,000 tonnes per year, making it the largest lubricants blending plant operated by an international oil company in the country

Mark Gainsborough, Executive Vice President, Shell Global Commercial said “We are delighted to confirm this significant new investment in our supply chain in Indonesia, a fast-growing lubricants market. We continue to implement our strategy of being close to our lubricants customers – driving business growth by offering the right products and services in the right places.” 

Strong growth in lubricants demand is expected from Indonesia, driven by new vehicle ownership and production, construction and industrial activity – especially in the power generation and oil and gas production sectors. Shell is the largest international supplier of lubricants in the country, currently importing finished products from its blending plants in Singapore and Malaysia. 

Darwin Silalahi, Country Chairman for Shell Companies in Indonesia, said “Shell has strong lubricants brands and brand preference in Indonesia and the region. It is exciting that products such as Shell Helix, Shell Advance, Shell Rimula, Shell Tellus and Shell Omala will be made in Indonesia in the coming years. This investment is testament to Shell’s confidence in the Indonesian market.” 

The plant will be constructed to incorporate world-class lubricant blending, filling and packaging technology. Processes in the plant will be automated and the plant will be equipped with a stringent quality control system that will test at all stages of production to ensure products meet the quality specifications associated with Shell’s brands. 

Shell will own 100% of this plant, thus ensuring full control over product quality. In Asia, Shell also has lubricants blending plants in China, Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India. In August 2012, Shell also announced its plan to build a new, state-of-the-art lubricants blending plant in Tianjin, China. 

In addition, three of Shell’s eight global base oil manufacturing plants are in Asia: Pulau Bukom in Singapore; Kaosiung in Taiwan and Yokkaichi in Japan. In early 2012, Shell signed a conditional Joint Venture agreement with Hyundai Oil Bank to develop, construct and operate a base oil manufacturing plant at the Daesan Refinery in South Korea. 

Shell today has a strong downstream presence in Indonesia. It was the first international petroleum retail brand in the country and is now a leading international oil company (IOC) with 65 operating sites in Greater Jakarta and Surabaya. 

Source: Shell Indonesia