The research gives Shell Lubricants 13% of the global market by volume, and a two per cent lead over its nearest competitor. The figures show that despite the tough operating environment, Shell outpaced the lubricants market as a whole and continued to increase its market share in key growth countries (source: Kline & Company). David Pirret, Executive Vice President for Shell Lubricants, said: “Kline’s research shows that we have continued to outperform the global lubricants market and maintained our leadership position in spite of the challenging external environment. To achieve this for the third consecutive year is testament to our consistent strategy, strong brands and technology leadership, focusing on delivering first-class lubricants solutions to customers, wherever they may be.” During 2008, global demand for lubricants declined by 3% (source: Kline & Company). However, Shell Lubricants achieved particularly strong growth in Brazil and Russia where volumes grew by 13% and 6% respectively. Shell also grew its volumes in Asia Pacific, the largest lubricants-consuming region in the world. In China, demand for lubricants was estimated at 5.5 million tonnes in 2008 making it the second largest lubricants market in the world behind the US. Shell retained its position as the leading international supplier of lubricants in China with a market share of just over 10% (source: Kline & Company). James Shen, General Manager for Shell Lubricants in China, said: “Retaining our position as the number one international lubricants supplier is testament to the consistently high quality of our products and services which deliver real value to our customers. In 2008 we achieved some significant wins with major industrial customers in the steel and food manufacturing sectors - as well as aggressive growth in the passenger car and transport market. “The opening of our state-of-the-art blending plant in Zhuhai later this year, followed by new lubricants research and development facilities, should bring us real competitive advantage as we move forward.” Li Jia, General Manager of Shell Tongyi, said, “We are excited with Shell's position as leading international supplier of lubricants in China and proud of Shell Tongyi's contribution. With Shell's support, Tongyi has upgraded its brand value proposition, quality control and safety management in the past three years. Building on this, we are rolling out new product lines and a new brand value proposition this year to meet Chinese consumer needs with our premium products.” In spite of the global recession, the Asia-Pacific region is expected to continue to show the most robust growth over the next few years. Demand for lubricants in China is forecast to grow by around 3.5% year on year to 2013, making it the fastest growing market in the world ahead of India. The industrial lubricants sector is forecast to show the strongest growth in China (source: Kline & Company). Looking ahead, David Pirret said Shell Lubricants was well placed to continue to outpace the market and make the most of opportunities in spite of the uncertainties ahead. He said: “The global recession has undoubtedly had a significant impact on the lubricants market and brought rapid change and volatility. “Despite this, we continue to invest heavily in lubricants research and development to ensure that we deliver the innovative technology that provides a key competitive advantage for Shell and an important source of value for our customers. This focus on technology, combined with our leading brands and global reach, mean we are well-positioned to seize future opportunities.”
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