BP China to Add Third Plant

BP Lubricantsannounced that it plans to build a third blending plant in China by the end of 2021, in Tianjin.

BP unveiled on Dec. 6 that the project will cost around 1.5 billion (U.S. $230 million), more than any other BP blending facility.

The plants annual production capacity of 200,000 metric tons will include lubricants and greases for automotive, industrial, marine, and aviation applications, as well as specialty lubricants and additives.

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The site spans 150,000 square meters in the Tianjin Economic Technological Development Area in Tianjins Binhai New Area. The factory will serve BPs customers in northern China and complement BPs blending plants in Shenzhen, Guangdong province, and Taicang, Jiangsu province - which were built in 1998 and 2005, respectively.

This new plant will leverage Tianjins competitive advantage as a transportation hub, helping BP ensure a stable supply of raw materials and smooth distribution of products, said William Sun, supply chain director, China and North Asia, BP Lubricants.

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BPs announcement is a vote of confidence in Chinas lubricant market, where growth stalled the past couple years. Most analysts agreed that lube demand in the country flattened or decreased in 2015 and 2016 after growing rapidly for the previous decade to turn China into one of the worlds two largest lube markets. That growth attracted interest of lube suppliers around the world and spurred the construction of numerous blend plants by domestic and international companies.