It represents the company’s single largest global blending plant investment
BP has decided to construct a new lubricants blending plant in China, with the goal to meet the country’s rapidly growing demand for high quality lubricants. With expected investment of around RMB1.5 billion (US$230 million), the new plant will be BP’s third lubricants blending plant in China, and will represent BP’s single largest blending plant investment worldwide.
“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. This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China,” said BP Downstream chief executive officer Tufan Erginbilgic.
The new plant will supplement the two lubricants blending plants already operating in then country and will serve as a strategic production hub for BP and Castrol’s lubricants business in China.
Xiaoping Yang, BP China president, said, “China is a key growth market for premium lubricants. 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 and for China.”
Expected to start operation before the end of 2021, the new plant will have an annual production capacity of 200,000 tons will be able to produce premium lubricants and greases for automobiles, industrial, marine, and aviation customers, as well as special lubricants and additives. The new facility will be spread over an area of over 150,000 square meters, with a particular focus on synthetic products which offer superior engine protection and performance compared to conventional oils.
“Strategically located in the Tianjin Economic-Technological Development Area (TEDA), this new plant will leverage Tianjin’s competitive advantage as transportation hub, helping us ensure a stable supply of raw materials and smooth distribution of products,” said William Sun, Supply Chain Director, China and North Asia, BP Lubricants. PWKD12122017