Shell Lubricants outperforms global market to top supplier ranking

Shell topped the annual rankings by achieving a 10% year-on-year increase in sales volumes in 2007, significantly out-pacing the lubricants market as a whole which grew by 2% overall.

David Pirret, Executive Vice President for Shell Lubricants, said: “Kline’s research shows that we have not only maintained our leadership for the second year, but we have also widened the gap with our nearest competitor. We’re reaping the benefits of a consistent strategy which offers customers exclusive and differentiated products.”

He attributed Shell Lubricants’ success to having the best lubricants technology and product portfolio combined with an in-depth understanding of customer needs.

During 2007, Shell achieved particularly strong growth in the emerging markets of Asia Pacific, which overtook North America as the largest lubricant consuming region in the world. Shell grew its lubricants volumes by 20% year on year in China, by 14% in Indonesia and by 8% in India.

It was also successful in the more mature markets of Western Europe and the US – which is the world’s largest single market for lubricants. In Western Europe, Shell bucked the trend by continuing to grow in a region where demand for lubricants fell overall. And in the US, Shell retained its market lead with a 12% market share by volume.

Looking ahead, Kline’s Vice President for Energy, Geeta Agashe, forecast slow growth for the lubricants market as a whole, but identified opportunities at the regional and country level. “Volume-wise, Asia is going to be the growth engine of the future, with demand declining in Western Europe and essentially flat in North America”, she said.

“From a product standpoint, the real story is in the anticipated growth of synthetic and semi-synthetic categories which help end-users prolong equipment life and improve fuel economy.”

David Pirret said Shell Lubricants was well positioned to make the most of the opportunities ahead in an intensely competitive market. He said: “In China, we are building a new blending plant to help us keep pace with accelerating demand. In India, we have bought out our joint venture partner to establish a 100% Shell-owned presence. And we have increased our investment in technology by some 20% this year to ensure that we can provide the cutting-edge products that our customers need.

“High oil prices make today’s economic environment especially challenging. However, developments such as the shift towards synthetics and growing demand in emerging markets create real opportunities. I am confident that we have the right people and strategy in place to out-perform the competition and sustain our leadership position.”

Enquiries

Shell International Media Relations - Rainer Winzenried  +31 (0) 70377 2282

Shell International Media Relations - London Office  +44 (0) 20 7934 3505

Kline & Company, Energy VP - Geeta Agashe (office) +1 973 435 3484

Notes to editors

The term ‘Shell Lubricants’ collectively refers to Shell Group companies engaged in the lubricants business. They manufacture and blend products for use in a range of applications from consumer motoring to food processing and heavy industry to commercial transport. Shell’s portfolio of lubricant brands includes Pennzoil®, Quaker State®, Shell Helix, Shell Tellus, Shell Cassida, Shell Rimula, Shell Spirax, Tongyi, a portfolio of car care products and Jiffy Lube®.

(1) Kline is a worldwide consulting and research firm. Data has been sourced from Kline & Company’s report ‘Competitive Intelligence for the Global Lubricants Industry, 2007 – 2017’.