Shell is expected to announce plans tomorrow for a new lubricants blending plant in Tianjin, in northern China.
A Dow Jones Newswires report yesterday, based on a media briefing in Shanghai, said Shell will break ground Thursday for the $100 million blending plant, and that it will have 300,000 metric tons per year capacity and start commercial production in early 2015.
A Shell spokesperson declined to comment to Lube Report about the report yesterday.
According to Shells web site, the company currently has six lubricant blending plants in China. That includes an existing plant in Tianjin. In August 2011, Shell also opened its first China lubricants technical service center in Zhuhai. Shells first-ever grease manufacturing plant in China is under construction in Zhuhai.
In late 2009, Shell started a lubricants blending plant in Zhuhai with 50 million gallons per year of capacity, to meet growing demand. With potential for phased development to 100 million gallons per year, Shell said Zhuhai could become one of its top three blending plants worldwide in terms of volume.
In 2006, Shell acquired a 75 percent share in Tongyi, Chinas leading independent lubricant manufacturer.