Shell starts construction of its largest Grease manufacturing plant in China

The plant will produce Lithium, Lithium Calcium and Lithium Complex greases which are used in passenger cars and industrial bearing lubrication. The plant will be Shell’s largest grease manufacturing facility with the potential for future expansion up to 40,000 tonnes per annum. It is primarily designed to meet China’s growing greases demand but in time may also export to other markets.

This new grease plant marks Shell’s next major step in developing the Zhuhai location to support its fast growing lubricants business in China and is a further demonstration of Shell Downstream’s strategy to focus on countries where there are growth opportunities.

In the same complex in November 2009, Shell opened its largest lubricants blending plant in Asia (by volume) to supply southern China with mainstream lubricant products including Shell Helix, Shell Rimula, Shell Tellus, Shell Omala and Original Equipment Manufacturer (“OEM”) products. In August 2010, Shell started construction of a state-of-the-art Technical Service Centre to provide technical, marketing and training support to lubricants customers and OEMs. The Centre will be open for service in the second quarter of 2011.

Lim Haw-Kuang, Executive Chairman of Shell Companies in China, said: “This is a major step forward to expand our lubricants capacity in China with local manufacturing, supply as well as technical service and cooperation. China’s lubricants demand is growing fast and we are working hard to meet our customers’ needs and serve them well.”

For the fourth consecutive year, Shell has been named the number one global lubricants
supplier - selling more lubricants in 2009 than any other company in the world. Shell is already the largest international lubricants supplier in Asia by sales volume and the number one international supplier of lubricants in terms of market share in China. (Source: Kline & Company)

For further information, please contact:

Li Lusha
Shell Companies in China
Tel: 86-10-65054501 ext. 2685
Email: lusha.li@shell.com

Notes to Editors

About Shell Lubricants

1. The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. They manufacture and blend products for use in a range of applications, from consumer motoring to mining and power generation to commercial transport. Shell’s portfolio of lubricant brands includes Pennzoil®, Quaker State®, Shell Rotella T, Shell Helix, Shell Rimula, Shell Tellus, Monarch, a portfolio of car care products and Jiffy Lube®. Shell has leading lubricants research centres in Germany, Japan (joint venture with Showa Shell), UK, and the USA. 
2. Our products are manufactured and marketed in more countries than any other lubricants supplier’s, enabling us to supply to our largest customers. We are expanding rapidly into emerging markets while continuing to seek growth in our heartland markets.
3. In 2002, Shell acquired Pennzoil-Quaker State Company to become the No. 1 lubricants marketer in the USA. Pennzoil motor oil has been one of the leading motor oil brands in the USA since 1985. 
4. In 2006, Shell acquired a 75% share in Tongyi, which is China’s leading independent lubricant manufacturer.
5. We focus on developing products and services that provide both superior protection and efficiency.