Shell to build lubricants blending plant in Indonesia

By Ruli Setiawan

Shell announced on Wednesday 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 will 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 tons per year, making it the largest lubricants blending plant operated by an international oil company in the country.

?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,? said Mark Gainsborough, Executive Vice President, Shell Global Commercial.

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 that Shell had 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,? he said.

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 text at all stages of production to ensure products meet the quality specifications associated with Shell?s brands.

Editing by Benget Besalicto Tnb.