Engineering Shell Inaugurates New Grease Manufacturing Plant in Indonesia

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With a production capacity of up to 12 kilotonnes per year, Shell has recently inaugurated its new grease manufacturing plant in Indonesia. With this project, the firm aims to strengthen its local manufacturing capabilities as well bring its products and expertise closer to its customers.

Jakarta/Indonesia – Shell Indonesia has officially inaugurated its Grease Manufacturing Plant (GMP) in Indonesia. With a production capacity of up to 12 kilotonnes per year, the plant complements Shell’s existing Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, Indonesia.

Jason Wong, Global Executive Vice President of Shell Lubricants, said: "The inauguration of Shell's Grease Manufacturing Plant in Indonesia reflects our continued confidence in the country's growth potential and our commitment to supporting its industrial development. By strengthening our local manufacturing capabilities, we are enhancing supply resilience and bringing our products and expertise closer to customers.

"This investment also reinforces our long-term commitment to creating value for our customers, partners, and Indonesia's broader economic development."

As Indonesia's industrial and transportation sectors continue to grow, lubricant products, including grease, play an important role in supporting equipment reliability and operational performance across a wide range of applications.

Attending the inauguration, Agus Gumiwang Kartasasmita, Minister of Industry of the Republic of Indonesia, said: “We welcome the inauguration of Shell’s Grease Manufacturing Plant in Indonesia as part of efforts to strengthen Indonesia’s manufacturing base. This investment is expected to support the needs of various industrial sectors, including manufacturing, mining, transportation, and other industrial activities that continue to grow. The Government appreciates investments that generate high-value products and have strong linkages with national industries, thereby creating multiplier effects for the national economy. Enhancing the competitiveness of the lubricants industry can help position Indonesia as a grease manufacturing hub, enabling Indonesian-made products to reach regional and global markets.”

“We would like to express our appreciation to Shell Indonesia for its commitment in continuously expanding its manufacturing activities and strengthening its investment in Indonesia. The establishment of the Grease Manufacturing Plant (GMP) in Marunda is not merely the addition of a production facility, but also part of a broader effort to strengthen Indonesia’s manufacturing base. Looking ahead, we hope that the journey of the Marunda GMP will not stop at meeting domestic market demand. As its production capacity and competitiveness continue to grow, we hope that Indonesia can evolve into part of Shell’s regional production network. We start from Indonesia, strengthen Indonesia, and, in time, bring Indonesian-made products to the region and the world.”

Shell’s new GMP in Indonesia is built with the latest technology, including a contact reactor, to enhance agility and efficiency. This plant will produce Shell Gadus grease products which are used in applications such as bearings and gears. It can manufacture grease in a range of packaging formats, including drums, pails and fluid bags, helping meet the needs of customers across sectors such as manufacturing, pulp and paper, steel, smelting, power generation, transportation, construction, and mining.

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