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Shell Ups Capacity And Efficiency Of Lubricants Plant Serving Central China

Today, Shell hosted the official unveiling of its newly expanded and upgraded lubricant blending plant site at Zhapu, Zhejiang province, China. This state-of-the-art plant will double the capacity of Zhapu site, will be top quartile for China in terms of efficiency and will play a key role in serving customers in Central China.
Attendees at ceremony marking the official unveiling of Shell’s newly expanded and upgraded lubricant blending plant site at Zhapu, Zhejiang province, China. (From left to right: Two Jiaxing local government representatives, Mark Gainsborough, Executive Vice President of Shell Global Commercial, Huibert Vigeveno, Executive Chairman of Shell Companies in China, Dennis Cheong, Shell VP Lubricants Supply Chain and Cheong Kin-Seng, Shell Regional Supply Chain General Manager - North East Asia

Attendees at ceremony marking the official unveiling of Shell’s newly expanded and upgraded lubricant blending plant site at Zhapu, Zhejiang province, China. (From left to right: Two Jiaxing local government representatives, Mark Gainsborough, Executive Vice President of Shell Global Commercial, Huibert Vigeveno, Executive Chairman of Shell Companies in China, Dennis Cheong, Shell VP Lubricants Supply Chain and Cheong Kin-Seng, Shell Regional Supply Chain General Manager - North East Asia

 

Work started on this newest expansion in late 2011 and commercial operation will be fully up and running by the end of 2013. It becomes the largest, current plant in Shell’s China network, with a doubled capacity of 400 million litres per annum.

Zhapu is a strategic location for Shell due to its proximity to the industrial heart of the country in Central China. The location also offers a mature infrastructure which gives Shell better access to key customers including Original Equipment Manufacturers based in the region. The expansion will enable delivery further inland to customers.

Mark Gainsborough, Executive Vice President of Shell Global Commercial, attended the opening and stated, “This is another milestone in Shell’s business development in China and the latest evidence of our commitment to China, most especially in the Zhejiang province. We are grateful to all our staff and business partners along with local government that have made this expansion possible. We look forward to working together further to the benefit of the region.”  

Huibert Vigeveno, Executive Chairman of Shell Companies in China, also in attendance said: “We are excited about our upgraded lubricants capacity in China. It enables us to serve our Chinese customers better and faster.”

The new expansion is in fact an add-on plant, built on the newly acquired land adjacent to the existing plant. It is designed as a highly efficient plant, able to handle high volume of products. The existing plant will be used to manage a broader portfolio and smaller production batches. The plant has one of the fastest fully automatic filling lines of all Shell Lubricants plants globally.

This is the first Lubricants plant in Shell China where In-Line Blending technology has been incorporated into the plant design. This is a simultaneous blending technology with automated control systems. In a  time where the demand in China for larger, including bulk orders, is on the rise, on-time and reliable delivery becomes crucial. This technology facilitates the fast and accurate blending of larger volumes of lubricants.

This announcement follows on the heels of a series other recent investments. In January 2013, we opened our 18th and largest global grease plant in Zhuhai. Here we manufacture a range of greases used in passenger cars and industrial bearing lubrication. Shell announced in August 2012 its plans to build a second lubricants blending plant in Tianjin, focused on supplying the North of the country. 

General shots of the upgraded plant covering from top left hand corner clockwise: The In-Line Blending system; storage tanks; and the finished product manifold

General shots of the upgraded plant covering from top left hand corner clockwise: The In-Line Blending system; storage tanks; and the finished product manifold

ENQUIRIES:

Shell Media Relations: (International) +442079345550

Shell Lubricants Global:  Mary B. Walsh, +3225089587

A selection of supporting images (photos and video) is available on request. 

 

NOTES TO EDITORS

SHELL LUBRICANTS IN CHINA

  • Shell has become one of the leading international lubricant companies in China by focusing on technology, quality products, its supply chain, distribution /channel management, operational excellence, manufacturing, management, leadership, and customer service. We have achieved double digit percentage growth year-on-year in China.  We are present in more than 200 cities across China; we have over 200 dealers, tens of thousands of transactional customers and millions of customers.

  • In 2006, Shell acquired a 75% share in Beijing Tongyi Petrochemical Company Ltd and Xianyang Tongyi. Since then, the joint venture has seen organic growth, achieving strong business results in recent years. 

  • Our consumer lubricants brands are Shell Helix and Shell Rimula (diesel lubricant). These rank number one in both brand awareness and preference and are the lubricants of choice for a large number of OEMs in China. Some of our most popular industrial lubricants brands are: Shell Tellus (hydraulic oil), Shell Gadus (lubricating grease), Shell Omala (gear lubricant), and Shell Spirax (transmission oil).

  • The supply chain is the part of Shell Lubricants’ business responsible for planning, production and delivery of products to Shell customers and distributor partners. It is the bedrock of the business and is critical to the security of product supply and assurance of superior product quality. Shell currently has 6 lubricant blending plants in mainland China in: Zhapu, Wuxhi, Tianjin, Xianyang, Tsing Yi and Beijing. Shell also has blending plants in Hong Kong and Taiwan and a grease manufacturing plant in Hong Kong.  

  • Shell’s first Lubricants Technical Service Centre is located in Zhuhai. There is an ongoing need for more technical research and service capacity in China hence the decision to build a new and bigger centre in Shanghai, a key location close to many of our Chinese customers. This centre will open in 2014.

SHELL IN CHINA

  • Shell's story in China dates back to more than one century ago.  All of Shell’s core businesses are now represented in China and our head office in China is in Beijing: Upstream (oil and gas exploration and liquified natural gas), Downstream (Oil Products and Chemicals) and our Projects and Technology organisation (Shell Global Solutions and Coal Gasification).

  • Shell in China is one of the largest foreign investors in China. Our Downstream business in China has 15 joint ventures and 8 wholly-owned companies. The various Shell ventures, in addition to the Lubricants business, cover about 1,000 Retail fuel stations, 5 Bitumen plants, and the Nanhai Petrochemicals complex.

  • With PetroChina, Shell operates the onshore Changbei tight-gas field.  The two parties have also agreed to appraise, develop and produce tight gas in the Jinqiu block in central Sichuan province. Also in Sichuan, Shell and PetroChina are assessing shale gas opportunities in the Fushun-Yongchuan block. The two parties are also evaluating coalbed methane acreage in the Ordos Basin and are currently drilling wells and acquiring seismic data. 

  • In August 2013 Shell signed an offshore oil and gas Production Sharing Contract (PSC) with CNOOC in the Yinggehai Basin west of the Hainan Island, China. This followed on signed of two PSCs with CNOOC for the 62/02 and 62/17 Yinggehai blocks in 2012 which marked Shell’s return to offshore exploration in China. It was also an opportunity to work with CNOOC again on a major project after the successful Nanhai petrochemicals joint venture in Guangdong province.

 

ABOUT SHELL LUBRICANTS

The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula.  We are active across the full lubricant supply chain. We manufacture base oils in eight plants, blend base oils with additives to make lubricants in over 50 plants, distribute, market and sell lubricants in over 100 countries.

We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range.  These include: Shell LubeMatch –the market leading product on-line recommendation tool, Shell LubeAdvisor - helps customers to select the right lubricant through highly trained Shell technical staff as well as online tools, and Shell LubeAnalyst - an early warning system that enables customers to monitor the condition of their equipment and lubricant, helping to save money on maintenance and avoid potential lost business through equipment failure.

Shell’s world-class technology works to deliver value to our customers.  Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have leading lubricants research centres in Germany, Japan (in a joint venture with Showa Shell), the UK and the USA.  We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development.

Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.

 

 

CAUTIONARY NOTE

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this press release refer to companies over which Royal Dutch Shell plc  either directly or indirectly has control. Companies over which Shell has joint control are generally referred to “joint ventures” and companies over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this press release, joint ventures and associates may also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2012 (available at www.shell.com/investor and www.sec.gov). These risk factors also expressly qualify all forward looking statements contained in this press release and should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release, 12 November 2013. Neither Royal Dutch Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

We may have used certain terms, such as resources, in this press release that United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

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