A Shell spokesperson yesterday said a final decision on a lube oil blending plant for Indonesia has yet to be taken, despite news reports Friday the company plans to invest $90 million to $100 million for a lubricant plant in Indonesia.
A Dow Jones Newswires report Friday quoted PT Shell Indonesia Chief Executive Darwin Silalahi, saying Shell will start construction of a blending plant in Indonesia this year and complete it in 2013 to 2014. In the report, Silalahi said the plant would have 100,000 metric tons per year capacity, and would also export to China, India and Vietnam.
Shell has been discussing the potential to locate a future lube oil blending plant in Indonesia with government officials, and we thank them for their co-operation, a Shell spokesperson told Lube Report. Indonesia is one of the fastest growing economies in the region and a key market for Shells downstream businesses. But, the spokesperson asserted, plans for a blending plant in Indonesia are not yet final.
Shell noted it is the top global lubricants supplier as well as the leading lubricants supplier across Asia, according to consultancy Kline and Co.
We are keen to explore opportunities to further support growth in the [Asia] region and believe we are well-positioned to do so, the Shell spokesperson continued.