Shell Opens Grease Plant in China

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Shell on Friday announced the opening of its new 30,000 metric tons per year grease plant in Zhuhai, in Chinas Guangdong province.

The grease plant, which is Shells largest, will have potential for expansion to 40,000 tons a year. The company said it will make a range of lithium, lithium calcium and lithium complex greases used mainly in passenger cars and industrial bearings.

According to a Shell statement, the Zhuhai plant consists of a workshop with four production lines, grease processing equipment, a plant control system, package filling lines, laboratory equipment and other associated facilities. It also has a warehouse for storage of packed raw materials, packaging and finished products, along with bulk additive and base oil tanks, bulk finished product tanks and truck unloading facilities. Commercial production at the grease plant has been underway since the fourth quarter of 2012, a Shell spokesperson told Lube Report.

Shell is the number one international supplier of lubricants in terms of market share in China, said Huibert Vigeveno, executive chairman of Shell Cos. in China. By building Shells largest grease plant in China, we are able to be closer to our customers. Vigeveno noted that Chinas lubricants demand, including that for grease, is growing fast.

Kline and Co. estimated that nearly 1.2 million tons of greases were sold globally in 2011, up from 1.1 million tons sold in 2010. In both years, Kline estimated the grease market at about 3 percent of the overall global lubricant demand.

Shell has a network of 18 grease manufacturing plants in 15 countries, including some owned by Shell and some that are joint ventures. That includes 10 in Asia Pacific, four in the Americas and four in Europe and Africa.

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