Shell and Hyundai Oil Bank (HDO) recently announced plans to construct a new base oil manufacturing plant in Daesan, South Korea, significantly increasing lubricant supply across the region.
Commissioning, start-up and operation of the plant will be managed by a joint venture between the two companies. Once the plant is fully operational, which is expected in the second half of 2014, it will produce 650 kilotons of API Group II base oils a year. A formal ground-breaking ceremony to mark the start of this cooperation is scheduled for Jan. 22 at Hyundai's refinery in Daesan.
The new plant is being built in response to an expected growth in high-quality lubricant demand in the region, driven by new vehicle ownership and production, construction and industrial activity, especially in the power generation and oil and gas production sectors.
The plant's location is close to key lubricant markets and has strong infrastructure. This will be Shell's fourth base oil manufacturing plant in the region, along with 19 lubricant blending plants. Shell also recently announced its intention to build two more blending plants in China and Indonesia.
"We are pleased to enter into this joint venture with HDO," said Mark Gainsborough of Shell Global Commercial. "It is a partnership that recognizes Shell's strengths in base oil technologies and our leadership position in lubricants blending and marketing. In Hyundai Oil Bank, we have found a worthy partner. Its world-class refinery facilities combined with its project-management expertise are a great fit with Shell's lubricants business."
For more information, visit www.shell.com.