BP to Build Largest Lubricant Blending Plant in China

Noria news wires

BP recently announced plans to build a new lubricant blending plant in China to help meet the country's growing demand for high-quality lubricants. With an expected investment of approximately $230 million, the new facility represents BP's single largest blending plant investment worldwide.

The plant is expected to begin operation before the end of 2021 with an annual production capacity of 200,000 tons. It will produce premium lubricants and greases for automobiles and industrial, marine and aviation customers, as well as special lubricants and additives, while serving as a strategic production hub for BP and Castrol's lubricant business in China and complementing the two blending plants already operating in the country.

"Premium lubricants are a growth business for BP, and ensuring that we can meet demand in a country growing as quickly as China is essential to our success," said Tufan Erginbilgic, BP Downstream chief executive officer. "This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China."

BP-Castrol established its first lubricant blending plant in the Shenzhen, Guangdong province in 1998, with the second in the Taicang, Jiangsu province in 2005. The new blending plant will be located in the Tianjin Economic-Technological Development Area and supply premium lubricant products to customers in north China. Tianjin is the largest coastal open city in north China and one of four municipalities directly under the Chinese Central Government.

"China is a key growth market for premium lubricants," noted Mandhir Singh, Castrol chief executive officer. "The new plant not only marks another milestone in BP's business development in the country but also reaffirms our commitment to long-term investment in China."

For more information, visit www.bp.com.

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