Shells first lubricant blending plant in Indonesia will be fully operational by 2016, a company spokesman told Lube Report Asia.
The U.S. $200 million plant is being built on 75,000 square meters of land in Marunda Center, an industrial estate located at the border of Jakarta and Bekasi city, and will supply lubricants for consumer, transport, industrial and marine markets in Indonesia.
Upon completion, the facility will have an expected capacity of 120,000 metric tons per year, producing Shells major brands such as Helix, Advance, Rimula, Tellus and Spirax. It will be the largest foreign-operated lubricant blending plant in Indonesia.
During a recent visit to Shell, Indonesias Industry Minister Saleh Husin expressed his views on the countrys need to reduce the volume of imported lubricants, especially for the industrial segment. He said industrial lubricant imports increased from around 71,000 tons in 2010 to 106,000 tons in 2013.
There is a need for an integrated supply chain between the upstream and downstream or lube base oil with lubricant products,” Husin said during his visit, according to state news agency Antara.
Shell owns 100 percent of the plant, its sixth in Southeast Asia. The company also has lubricant blending plants in Vietnam, Malaysia, Thailand, Philippines and Singapore. It has four wholly- and jointly-owned base oil plants in Asia – in Singapore, Taiwan, Japan and South Korea.