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China: Fast-Growing Demand for Lubricants BP to Build Third Lubricants Blending Plant in China

| Editor: Alexander Stark

BP announced plans to build a new lubricants blending plant in China. The plant will be the company’s third lubricants blending plant in China and, with expected investment of around $ 230 million, will also represent BP’s single largest blending plant investment worldwide.

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The new plant will be BP’s third lubricants blending plant in China.
The new plant will be BP’s third lubricants blending plant in China.
(Source: BP)

London/UK — The new plant will serve as a strategic production hub for the oil company's and Castrol’s lubricants business in China and complement the two lubricants blending plants already operating in China.

The plant, expected to start operation before the end of 2021, will have an annual production capacity of 200,000 tons. With an area of over 150,000 m2, it will be able to produce premium lubricants and greases for automobiles, industrial, marine, and aviation customers, as well as special lubricants and additives, with a particular focus on synthetic products which offer superior engine protection and performance compared to conventional oils.

Located in the Tianjin Economic-Technological Development Area (TEDA), in Binhai New Area, Tianjin, the blending plant will 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.

To supply high quality lubricants to the fast-growing Chinese market, BP-Castrol set up its first lubricants blending plant in Shenzhen, Guangdong province in 1998 and the second in Taicang, Jiangsu province in 2005.

China is a key growth market for premium lubricants. “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 BP Downstream chief executive officer Tufan Erginbilgic.

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