Shell Will Expand Russian Plant

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Shell Will Expand Russian Plant
Photo courtesy of Shell | A view of tanks at Shell Neft's lubricant blending plant in Torzhok, Russia.

Shell intends to increase the production capacity of its 180,000 tons per year blending plant in Torzhok by 50 percent by 2023, a company official said last week, according to Russian media reports.

At a meeting with the governor of Tver oblast Igor Rudenya, Sergey Starodubtsev, the general manager of Shell’s subsidiary in Russia said the company plans to expand the facility to 270,000 t/y, local media reported on July 22.

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The project is scheduled to start in 2021 and to carry a price tag of 6 billion rubles (U.S. $84 million), according to the proceedings of the meeting reported by Russian media.

A Shell Neft spokesperson reached by Lube Report declined to comment on the news reports.

At the meeting, Starodubtsev said that 80% of the finished lubricants sold by Shell in Russia are produced in the plant in Torzhok.

The complex started operating in 2012 and is one of several large-scale Shell lube factories around the world. It produces motor, hydraulic and transmission oils, as well as marine and industrial lubricants.

Another discussion topic at the meeting was establishment of an industrial park in Torzhok and opening of a petrochemicals research and development center that can attract other domestic and international refiners to build facilities there.