BP plans to build a new lubricants blending plant in China to help meet the country’s rapidly growing demand for high quality products. This will be BP’s third lubricants blending plant in China and, with expected investment of around RMB1.5 billion (US$230 million), it will also represent BP’s single largest blending plant investment.
The plant will serve as a strategic production hub for BP and Castrol’s lubricants business in China and complement the two lubricants blending plants already operating there. It is expected to commence operation before the end of 2021 and will have an annual production capacity of 200 000 t. 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.
The blending plant will supply premium lubricant products to customers in north China.
“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,” said William Sun, Supply Chain Director, China and North Asia, BP 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’s Downstream CEO, Tufan Erginbilgic. “This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China.”