As part of its continued growth strategy, Shell last Thursday opened its latest lubricant blending plant in Asia and the largest internationally operated lubricant plant in Indonesia. The facility is located at the Marunda Centre, north of Jakarta, and sits on 75,000 square metres of land, equivalent to ten football fields.
The plant has automated lubricant blending, filling and packaging technology and is equipped with a dedicated lubricant-testing laboratory. The plant is capable of producing 120,000 tonnes (136 million litres) of finished lubricants a year, enough to change the oil of more than 460,000 motorcycles or almost 90,000 cars every day.
Shell announced in August 2013 that the company had begun construction of this lubricant blending plant in Indonesia. For additional information, please refer to our story "Shell Begins Construction of $200 Million Indonesia Lubricant Plant" in the August 26, 2013 issue of the OEM/Lube News.
"This plant is testament to our confidence in the strength of the lubricants market in the country. Indonesia is the largest lubricants market in Southeast Asia and is one of the growth engines for the industry in the region, alongside China and India. This plant brings our world-class lubricant production capability to Indonesia, strengthening our global supply chain. It enables us to meet the lubricant needs of our Indonesian customers, with our high quality and premium lubricants, made at this new facility. Indonesias economy has grown rapidly in recent years and lubricants are an essential enabler for this countrys growth ambitions in almost every sector, said Mark Gainsborough, Executive Vice President of Shell Lubricants.
The plant will produce Shell branded passenger car motor oils, motorcycle oils, heavy duty engine oils, transmission oils, as well as industrial lubricants. These products will support Indonesias growing demand for vehicle motor oils and other lubricants for applications in sectors like mining, power generation, transportation and the growing infrastructure building sector in the country.
According to information OEM/Lube News obtained from George Morvey, Industry Manager, Energy Practice, Kline & Company consultancy, Shell has the second largest lubricant market share in Indonesia, after Pertamina, who is the leader with an overall market share of 55%, followed by Shell, Jakarta-based Federal Oil, San Mateo, CA-based Top One, ExxonMobil, Jakarta-based PT Wiraswasta Gemilang, Total, Fuchs, JX Nippon, Sinopec and all other suppliers.
