BP has announced plans to build a third lubricants blending plant in China to meet the growing demand for high quality lubricants in the country.
The company will invest RMB1.5bn ($230m), which will also be the company’s single largest blending plant investment worldwide.
The new plant will be a strategic production hub for BP and Castrol’s lubricants business in China and complement the two existing plants.
The new plant is expected to start operation before the end of 2021 and will have an annual production capacity of 200,000 tonnes.
It will produce premium lubricants and greases for automobiles, industrial, marine, and aviation customers.
Special lubricants and additives, with focus on synthetic products which offer superior engine protection and performance compared to conventional oils, will also be produced at the new plant.
The plant will be established in Tianjin Economic-Technological Development Area (TEDA) in Binhai New Area, Tianjin, and supply products to customers in north China.
BP-Castrol established the first plant in Shenzhen, Guangdong province, in 1998 and the second in Taicang, Jiangsu province, in 2005.
BP Downstream CEO Tufan Erginbilgic said: “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.”
BP China president Xiaoping Yang 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.”
BP Lubricants supply chain director, China and North Asia, William Sun, said: “Strategically located in 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.”