BP PLC (NYSE:BP) reported plans to establish an advanced lubricants blending plant in China to assisi meet the nation’s fast growing demand for top quality lubricants. This new plant will be company’s third lubricants blending plant in the country and, with projected investment of nearly RMB1.5 billion, will also showcase company’s single leading blending plant investment globally.
BP Downstream CEO Tufan Erginbilgic expressed that premium lubricants marks as a growth business for company and ensuring that they can fulfill demand in a nation growing as fast as China is essential to their success. This lubricants blending plant showcases their commitment to strengthening their competitiveness and establishing a viable lubricants supply chain in China. BP reported that this new plant will be a strategic production center for Castrol and company’s lubricants operations in China and complement the initial lubricants blending plants already functioning in China.
Xiaoping Yang, BP China president, stated that China is a major growth segment for premium lubricants. The new plant marks another milestone in company’s business development in the nation and also reaffirms their dedication to long-term investment for and in China.
The new plant, projected to begin operation before the close of 2021, will have a yearly production capacity of 200,000 tons. BP reported that with an area of more than 150,000 square meters, it can produce premium greases and lubricants for marine, aviation, automobiles and industrial consumers, as well as special additives and lubricants, with a specific emphasis on synthetic offerings which provide superior engine performance and protection versus conventional oils.
Based in the TEDA, the blending plant will offer premium lubricant products to clients in north China. Tianjin marks as the major coastal open city in North China. It also comes in the list of four municipalities that are right under the Chinese Central Government.