Oronite to Boost China Output


Chevron Oronite announced Wednesday its final investment decision to expand its lubricant additive facility in Ningbo, in China’s Zhejiang province, saying it anticipates growing demand in that market.

The company said it plans to beginning the execution phase of the expansion in July 2024, with an anticipated completion date in late 2026. The investment amount and volume of additional plant production capacity were not disclosed.

Through Oronite’s agreement with Ningbo Economic & Technical Development Zone, “this next phase of development in Ningbo will better position us to help meet the needs of China’s market while maintaining close proximity to customers and critical raw material supply,” Chevron Chemicals President Mitra Kashanchi said in a news release.

Oronite built the plant between 2018 and 2021, establishing local production in a market that it had served from Singapore. The site is near the Port of Ningbo-Zhoushan, providing advantages in distributing products throughout China and connecting to the company’s other major facilities around the word. Chevron Oronite is headquartered in San Ramon, California in the United States. In addition to the Ningbo plant in China, Oronite operates manufacturing sites in Belle Chase, Louisiana in the U.S., Gonfreville in France, Singapore and Maua in Brazil. It also operates an affiliated blending and shipping plant in Omaezaki, Japan, as well as technology centers in the U.S., France, the Netherlands, Japan and China. The company also has interests in additive companies operating in other locations, including India.