Shell to expand lube production by 300,000 tonnes/yr in China

09 December 2010 09:46  [Source: ICIS news]

SINGAPORE (ICIS)--Shell (China) plans to build a lubricant blending plant in Wuxi to boost its production capacity to 900,000 tonnes/year from 600,000 tonnes/year, a market source said on Thursday.

The new plant, to be based at the refinery site of Luroda Lubricants (Wuxi), would have a production capacity of  300,000 tonnes/year for lubricants and 6,000 tonnes/year for lubricating grease, he added.

The project was under government verification and construction was expected to start in 2011 or 2012, the source said.

Shell’s subsidiary Beijing Bailiwei Science and Technology Development would set up the plant, to be called Shell Tongyi (Wuxi) Petrochemical. No financial details were disclosed.

Shell owns six lubricant blending plants in China. Its Tongyi-branded lubricants have a 10% share of China’s lubricant market, mainly in the vehicle and iron and steel processing sectors.

Beijing Bailiwei Science and Technology Development is mainly engaged in such fields as science and technology development, business information service and logistics.

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By: Nancy Shi

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