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Shell announced that it is starting construction of a major new lubricants blending plant – the first to be built by an international oil company in Russia.
The plant, which is being built in Torzhok in the Tver region, north-west of Moscow, will have a capacity of 200 million liters a year (about 180,000 tons), making it one of the largest in the Shell network worldwide. Commercial operation is expected to begin by the end of 2010.
As a leading international supplier of lubricants and greases to Russia, Shell will bring advanced technology to the local market and ensure high quality products through stringent quality control. Bringing world-class production capacity closer to customers will allow Shell to supply a full range of high-quality motor oils, transport oils and industrial lubricants to the Russian market, with the potential to expand distribution to neighboring countries in the future. Large industrial customers will benefit from the bulk delivery of technologically advanced products, speeding up delivery times and reducing storage costs.
David Pirret, executive vice president for Shell Lubricants, said: "Russia is a country of strategic importance for Shell, and today's announcement is further evidence of our commitment to grow our business here, not only in upstream but also in downstream. Russia is the third largest lubricants market in the world and it is vital that Shell, as the leading global lubricants supplier has a significant presence here. Shell Lubricants has seen seven consecutive years of profitable growth in Russia and we believe that setting up lubricants production facilities will help us capitalize on further growth opportunities."
Dmitry Zelenin, the governor of the Tver region, noted: "We are glad that Shell is building a lubricants blending plant in the Tver region. The plant will use advanced operational and organizational technologies, employ Russian workforce – from maintenance to managers, and create around 150 new jobs. The regional administration will continue supporting our foreign partners. I am confident that there will be no difficulties to hinder the project implementation, and commercial operation will start by the end of next year as planned."