Hyundai, Shell Begin Production at Base Oil Plant in South Korea

Noria news wires
Tags: industrial lubricants

Hyundai and Shell Base Oil Co. recently opened a new base oil manufacturing plant in Daesan, South Korea. The plant has the capacity to produce approximately 13,000 barrels per day or 650 kilotons of API Group II base oils per year.

"As the demand for higher quality lubricants is on the rise in Asia, the region is shifting away from Group I base oils toward increased use of Group II and Group III base oils," said Mark Gainsborough, executive vice president for Shell Lubricants. "This plant contributes significant Group II base oil supply to Shell's supply chain in the region, helping us grow our premium lubricants business in Asia, especially in China and Northeast Asia."

The plant was built to capture the growing demand for Group II base oils in Asia. Construction was completed in 20 months, which was almost two months ahead of schedule. Successful commercial production of base oils began in July 2014.

This is Shell's fourth base oil production plant in the region, following Pulau Bukom in Singapore, Kaohsiung in Taiwan and Yokkaichi in Japan. Shell base oil production plants in Asia work alongside its network of 19 blending plants in the region to deliver high-quality finished lubricants.

Shell's blending plants are located in China, Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India. The company is also currently building two new blending plants in Asia, one in China and one in Indonesia.

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