Shell Ranked No. 1 Lubricants Supplier Globally For Fourth Consecutive Year
Oct 05, 2010
Customer focus and technology leadership ensured increased market share and competitive lead despite economic recession.
Shell has been named the No.1 global lubricants supplier for the fourth consecutive year in an annual research study carried out by Kline & Company (”Kline”)1.
Despite one of the toughest operating environments since the Great Depression, Shell Lubricants trumped a tumultuous 2009, growing its global market share to 13.4% from 12.7% in 2008. It also widened its lead over its nearest competitor to 2.5%, up from 1.6% the year before. These figures are especially significant, given that 2009 worldwide lubricant demand declined 8.4% over 2008 to 35 million tonnes.
“Kline’s research shows that despite very challenging market conditions, Shell has continued to outperform the lubricants market as a whole and maintain our global leadership position,” said Chong-Meng Tan, Executive Vice President for Shell B2B and Shell Lubricants. “I believe this is the result of a consistent strategy that focuses squarely on customers, as well as leading technologies delivering superior products and services that add value for clients.”
According to Kline, the impact of the global recession had been less severe in the Asia-Pacific region, which continued to show the most robust volume growth. Shell achieved strong growth in China to garner an 11% market share, extending its lead as the top international supplier; in growth markets like Indonesia, Shell is a significant player among international oil companies. Kline also noted that the USA – the largest lubricants consuming market – was among those that were most impacted by the economic downturn. Nevertheless, Shell continued to maintain its leadership position with an 11.6% share.
Hardeep Kirpal-Singh, Director/GM-Sales Indonesia Lubricants, PT Shell Indonesia said,“In reference to the Kline study, it reinforces that Shell has certainly got the right propositions for our customers in the B2B segment by delivering value to their operations whilst having a strong brand to provide assurance to the B2C consumers. We have the expertise to deliver these propositions to our customers and consumers, this gives us the confidence that our strategy and efforts are aligned in delivering our growth aspiration & promises.”
On the industry’s competitive landscape Kline indicated that technological expertise has been, and will increasingly become, an important differentiator for lubricants suppliers. This is a key strength for Shell, whose technological leadership includes more than 70 years of innovation through investing in research and development (R&D), and recruiting world-class scientists to create some of the most advanced lubricant products available. Most recently, Shell broke ground for the construction of a technical services centre in Zhuhai, China. When operations start in 2011, the centre will provide comprehensive lubricating solutions to Chinese customers in the automobile, shipping and power industries. Shell also partners with leading original equipment manufacturers, customers and institutions in projects that enable testing of its products in some of the most demanding conditions.
Shell’s focus on customers has won the confidence of many who are market leaders in their sectors. Earlier this year, Shell and Hyundai Motor Company announced the renewal of their global lubricants agreement, making Shell the preferred lubricants supplier for a further five years. International mining companies such as Anglo American have also extended their contracts with Shell over the last 12 months.
1 Kline & Company is a worldwide consulting and research firm. All data in this media release has been sourced from Kline & Company’s report “Global Lubricants Industry 2009: Market Analysis and Assessment, 2009-2019”, unless otherwise stated.
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Note to Editors:
About Shell & Hyundai
Shell and Hyundai have had an alliance since 2005, making Shell the preferred lubricants supplier of Hyundai worldwide.
About Shell Lubricants
- The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. They manufacture and blend products for use in a range of applications, from consumer motoring to mining and power generation to commercial transport. Shell’s portfolio of lubricant brands includes Pennzoil®, Quaker State®, Shell Rotella T, Shell Helix, Shell Rimula, Shell Tellus, Monarch, a portfolio of car care products and Jiffy Lube®. Shell has leading lubricants research centres in Germany, Japan (joint venture with Showa Shell), UK, and the USA.
- Our products are manufactured and marketed in more countries than any other lubricants supplier’s, enabling us to supply to our largest customers. We are expanding rapidly into emerging markets while continuing to seek growth in our heartland markets.
- In 2002, Shell acquired Pennzoil-Quaker State Company to become the No. 1 lubricants marketer in the USA. Pennzoil motor oil has been one of the leading motor oil brands in the USA since 1985.
- In 2006, Shell acquired a 75% share in Tongyi, which is China’s leading independent lubricant manufacturer. Today Shell is the leading international lubricants supplier in China and has the third largest share of China’s rapidly growing market.
- In November 2009, we opened our sixth lube oil blending plant in Zhuhai, Guangdong Province, China. With a production capacity of 200 million litres a year, and the potential for a phased development to 400 million litres a year, the complex could become one of Shell’s top three lubricants blending plants worldwide in volume terms.
- We focus on developing products and services that provide both superior protection and efficiency.