Shell to build lubricants blending plant in Indonesia
Nov 14, 2012
Today, 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.
Here’s an inside look at a Shell lubricants blending plant, this one was recently opened in Torzhok, Russia.
Shell Media Relations (Asia): Serene Loo, +65 97297294, firstname.lastname@example.org
Shell Media Relations (International): +44 (0) 20 7934 5550
Shell Indonesia: Sri Endah +62 21 75924700
Photos to accompany this press release
A selection of supporting images (photos and video) is available on request. The latest advertising campaign (Shell Helix) launched in Indonesia on 1 June 2012, can be reviewed at: http://www.youtube.com/shellhelix
Notes to editors
- Shell will own 100% of this plant, thus ensuring full control over product quality.
- To date, Shell has imported lubricants to Indonesia. Bringing world-class production capacity closer to customers in Indonesia will allow Shell to supply a full range of high-quality motor oils, transmission oils and industrial lubricants to the market, with the potential to expand distribution to neighbouring countries in the future.
- This new Indonesia blending plant will be designed to meet high environmental standards including measures to reduce waste and carefully control waste disposal to ensure no harm to the environment. All processes at the plant are automated and controlled at all stages by operators based at the control room. A plant management system will be installed and control all stages of production.
- 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.
About Shell Indonesia
The history of Royal Dutch Shell in Indonesia has started over 120 years ago, following its first oil discovery in Pangkalan Brandan, North Sumatra.
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. In 2006, Shell started its commercial fuels, marines and bitumen businesses in Indonesia, providing oil products and related technical support to the industrial, transport and mining sectors. Shell is also recognised as a leading international company with the largest lubricant market share, after Pertamina, serving motorists and industrial customers.
Shell brings in significant investment to build fuels supply chain infrastructure in Indonesia, in cooperation with its local partners. The fuel storage facilities in Gresik and Pulau Laut, the lubes warehouse facility in Bekasi, Surabaya and Balikpapan, and the bitumen storage facility in Cirebon, are examples of successful joint ventures with leading Indonesian companies such as Astra International and Adaro Energy.
Last year, Shell re-entered the upstream business in the country of its birthplace. It signed an agreement to be the strategic partner with Inpex who operates the Masela PSC which includes the Abadi gas field. Shell’s participation in the Abadi field underpins its growth strategy and recognizes its world leader position in both LNG and Floating LNG (FLNG) developments.
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.
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