Last Tuesday, Shell formally opened a new technology centre in Shanghai, China dedicated to research and development into lubricants and oils. The centre (Shell (Shanghai) Technology Limited) will focus on lubricant product development and application for China and the wider Asia region covering countries such as India, Indonesia, South Korea, Thailand and Vietnam. The Shanghai facility becomes the company’s third global centre dedicated to lubricants and oils.

Matthias Bichsel, Shell’s Projects & Technology Director, said, “The Shanghai facility will proudly bring Shell’s technology leadership even closer to customers and partners in the region. Shell has long been at the forefront of lubricant science and technology. We recognise that better oils and greases can lead to energy savings and improved machine performance.” The centre will become a part of Shell’s network of lubricants laboratories, working closely with the other two centres, in Hamburg, Germany and Houston, USA. These are part of a wider 10-centre strong global network of Shell R&D centres. “The new centre reflects the direction of the Shell Lubricants business today and the central role that China plays in its long-term growth strategy,” said Mark Gainsborough, Executive Vice-President Shell Lubricants. “We are well-positioned to meet the anticipated growth in demand in the region. Locating in Shanghai will help us work more closely with our customers and shape mutually beneficial collaborations. ”

The research work in this 8,600 sq m, nine storey building will cover a wide range of product applications including passenger car motor oils (PCMOs), motorcycle oils (MCOs), heavy duty engine oils (HDEOs), transmission fluids, as well as industrial and speciality oils and greases. It will also cover oils for the shipping sector.

It will also provide hands-on technical services to customers. Staff at the centre will also liaise with original equipment manufacturers (OEMs) and academic institutions in the region. Its laboratory facilities will enable the running of field trials, performance demonstrations and bench-testing. “Shell wants to be the most competitive and innovative energy company in the world so it is natural for us to set up a key lubricants technology establishment in this ‘innovation incubator’. We will be able to explore competitively advantaged technology solutions for business growth and we can establish a forum for technical collaboration with original equipment manufacturers and research institutes in China. We aim to be able to attract the best talent in China. ” stated Huibert Vigeveno, Executive Chairman of Shell Companies, China.

The new centre is located at Shanghai Zhangjiang High-Tech Park in Shanghai’s Pudong district, one of China’s most high profile technology and innovation parks and established 20 years ago.. Its core area covers a total area of 25 sq km with technical innovation, hi-tech industry, scientific research & education and residential zones. It has been dubbed China’s Silicon Valley. The Zhangjiang District is 21km from Shanghai Pudong International Airport, 30 km from Shanghai Harbour and even closer to rail links to many of China’s principal cities.

There are three Shell technology centre hubs: Amsterdam, the Netherlands, Bangalore, India and Houston, the United States. These hubs link to a network of ten other centres, including three centres with a lubrication research specialisation, around the world which are, in turn, linked to Shell’s global businesses as well as their customers and partners.

Asia is the fastest growing regional lubricants market in the world: it represented 43% of global volume in 2012.1 China is the fastest-growing and second-largest lubricants market in the world. Research shows it will take over as the world’s No. 1 market in the near future (from the USA). Shell is a market leader among the multinationals in the region and has been the number1 international lubricants brand in China in terms of market share for seven consecutive years.