Shell Lubes to Expand in Egypt


Shell Egypt will increase capacity of its lubricants blending plant near Cairo by more than 100 million liters per year by 2017, an official told Lube Report.

The fully-owned Shell plant will increase capacity by double digits [percent] in an incremental three year period, Shell Egypt Lubricants sales manager Saher Hashem said. Shell did not disclose the plants current capacity or the costs of the expansion project but noted that the investments will also be incremental.

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The expansion will result in more storage space both for raw materials and finished lubricants, as well as new filling lines, blending lines and packaging capabilities.

The plant produces the Shell Helix range of motor oils, which includes Shell Helix Ultra fully synthetic motor oils along with heavy duty diesel engine oils marketed under the Shell Rimula brand, as well as other industrial lubricants and greases.

Shell is expanding to meet the existing demand of the local market, Shells spokesperson continued, noting that the company is looking to increase its share of the nations lubricants market.

George Morvey, industry manager for consultancy Kline & Co.s Energy Practice, said his companys LubesNet database estimated the Egyptian lubricants market in 2013 at 400,000 metric tons. ExxonMobil led in 2013 with an estimated 27 percent market share, followed by Coop (Petroleum Cooperative Society Co.) at 23 percent, Misr Petroleum with 19 percent, Shell at 11 percent, Chevron at 8 percent, Total at 5 percent and all others accounting for 7 percent.