Shell doubles capacity with expanded lubricants plant in Indonesia
Nov 11, 2022
Bekasi – Shell Indonesia (‘Shell’) has expanded its Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, to meet the growing demand for premium lubricant products in Indonesia.
At the launch, the Minister of Industry of the Republic of Indonesia represented by Acting Director General of Industry, Chemical, Pharmaceutical and Textile, Ignatius Warsito, said, “We appreciate Shell's commitment to expand investment in Indonesia and innovate to help provide lubricants and support national economic growth. We hope that Shell can continue to be a strategic partner of the Government of Indonesia in increasing the capacity of the lubricants industry in the country.”
The new plant is equipped with world-class technology, including cutting-edge blending equipment, high-speed filling lines and Automatic Mobile Robot (AMR). AMR is a smart robot system to offload, stage, assembly the finished goods from the small packaging filling lines to aid truck loading.
As part of Shell’s Powering Progress strategy to reduce emissions from its operations, the plant includes sustainability features, such as solar panels and a rainwater harvesting system to help reduce water consumption.
Machteld De Haan, Global Executive Vice President of Shell Lubricants, said, “Indonesia is a key growth market for our business and our investment to expand the plant is a sign of our confidence in the market. Lubricants are an essential enabler for Indonesia’s continued growth. Through the plant expansion, we will strengthen our supply chain to enable us to serve more customers faster and in a more sustainable way.”
Marunda LOBP will continue to produce Shell’s leading lubricants products, such as Shell Helix (passenger car motor oil), Shell Advance (motorcycle oil), Shell Rimula (truck and heavy-duty engine oil), Shell Spirax (axle and transmission oil), as well as other industrial lubricants. These products will support Indonesia’s growing demand for vehicle motor oils and other lubricants for applications in sectors like mining, power generation, transportation and infrastructure building.
The automotive, industrial, and marine sectors account for the majority of lubricants demand in the country. According to the Association of Indonesia Automotive Industries (Gaikindo), over 800,000 new vehicles were sold in 20211, while data from the Indonesian Motorbike Association (AISI) showed that over 5 million new motorcycle units were sold in the same year2.
Inauguration Ceremony of Shell Marunda LOBP Expansion
(from left to right) Mr Gautam Pal - VP Lubricants Supply Chain, Mr Andri Pratiwa - Director of Lubricants Shell Indonesia, Ms Ingrid Siburian - President Director and Country Chair Shell Indonesia, Mr Ignatius Warsito - Acting Director General of Chemical, Textile, and Pharmaceutical Industry, Ministry of Industry of the Republic of Indonesia, Ms Mansi Tripathy - VP Lubricants Asia Pacific, Ms Machteld de Haan - EVP Global Lubricants
High Speed Filling Line Machine
High Speed Line Palletizer
Notes to Editors
- Shell’s first Lubricants Oil Blending Plant in Indonesia was built in Marunda (Marunda LOBP) in November 2015, with annual capacity of 136 million litres.
- The investment of Marunda LOBP expansion (“Marunda 2.0 Project”) was announced in March 2020.
- Marunda 2.0 Project was a brownfield project, which was executed alongside an operational plant during the global pandemic in 2020-2022. Forty new tanks with a total capacity of 21,000 cubic metres were built, four new state of art high performance filling lines were installed.
- Marunda LOBP has also installed a solar power system. Every year, the system is expected to generate 1.1 million kilowatt-hour of power and will power approximately 35% of the LOBP’s electricity consumption.
About Shell Lubricants
The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, construction, mining, power, agriculture and general manufacturing. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Advance, Shell Rotella, Shell Rimula, Shell Argina, Shell Gadinia, Shell Corena, Shell Diala, Shell Morlina, Shell Mysela, Shell Naturelle, Shell Omala, Shell Spirax, Shell Tellus, Shell Tonna, and Shell Turbo. Shell was named the leading global supplier of finished lubricants for a 15th consecutive year, according to the 19th edition of Kline & Company’s report Global Lubricants: Market Analysis and Assessment 2021. Shell was named number one global supplier in all three main categories – consumer, commercial and industrial.
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this announcement refer to entities over which Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations”, respectively. “Joint ventures” and “joint operations” are collectively referred to as “joint arrangements”. Entities over which Shell has significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
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1 Sepanjang 2021 Penjualan Mobil Domestik di Atas 800 Ribu Unit – GAIKINDO
2 Statistic Distribution - AISI