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China Knowledge: Shell’s sixth plant to be built in Guangdong

Jun. 29, 2007 (China Knowledge) – Royal Dutch Shell plans to construct its mainland sixth lubricant-blending plant in Zhuhai, Guangdong province in order to tap on the rising demand in South China. 

Shell’s latest addition is set to help capture the fast growing auto market in China, which reported an increase of 21% in passenger car sales in the first five months to 2.57 million units. The main demand of lubricant stems from car use.

The new plant once ready for operations in 2009 will be one of Shell’s three largest lubricant-blending plants worldwide. The plant will first start off with an initial capacity of 200 million liters, which might be doubled later pending market demand, according to sources.

Last year, Shell acquired three lubricant-blending plants from Tongyi Petroleum Chemical Company Limited, which markets China’s leading independent lubricant brand. Shell purchased a 75% stake in Beijing Tongyi Petroleum Chemical Co. and Xianyang Tongyi Petroleum Chemical Co. in September, sources said.

In 2006, Shell recovered its position as the top ranking in the global lube market share, over taking competitor ExxonMobil Corp.

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