ExxonMobil announced last week that it will expand the hydrocracker unit at its Rotterdam refinery to upgrade heavier byproducts into cleaner, higher-value finished products, including EHCTM Group II base stocks and ultra-low sulfur diesel, to meet growing global market demand.

The refinery, operated by Esso Nederland BV, will use ExxonMobil’s proprietary hydrocracking technology and be the first to produce EHC Group II base stocks in Europe.

“This investment demonstrates ExxonMobil’s long-term view and disciplined investment approach,” said Jerry Wascom, president of ExxonMobil Refining & Supply Company. “Despite a challenging industry environment, we are committed to our long-term strategy of investing in projects in advantaged locations where we can continue to increase competitiveness and profitability.”

“This investment underscores our commitment to provide high-quality base stocks in Europe and follows previously announced expansions at ExxonMobil’s Baytown, Texas and Jurong Singapore refineries this past year,” said Loic Vivier, vice president of Wholesale & Specialties for ExxonMobil Fuels & Lubricants. “Combined with ExxonMobil’s existing manufacturing capabilities, this project will enable us to offer a global EHC Group II base stocks product offering to meet current and future customer needs.”

The project’s environmental impact assessment has been approved and the site-permitting process is being finalized. Permits are expected in early 2016. Pending receipt of permits, construction is scheduled to begin in 2016 and unit startup is targeted for 2018.

ExxonMobil also produces Group II base oils at its refinery at Jurong, Singapore with capacity of up to 31,000 bpd,as well as at the Bayton, TX refinery with capacity of up to 18,700 bpd.

ExxonMobil’s modern Rotterdam refinery has a daily throughput of 190,000 barrels of crude oil. The refinery was built in the late 1950s and was the largest ever foreign investment at that time.

ExxonMobil’s presence in the Netherlands dates back to 1891, making it the country’s oldest oil and gas company. ExxonMobil is also the oldest U.S. industrial company in the Netherlands. ExxonMobil now has several manufacturing sites in the Rotterdam area, including a refinery, a lubes plant and four petrochemical plants.