British oil and gas major BP is planning to construct its third lubricants blending plant in China, with an expected investment of around RMB1.5bn ($230m).
The new plant is aimed at meeting the country’s growing demand for lubricants.
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BP downstream CEO Tufan Erginbilgic said: “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.
“This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China.”
In addition to complementing the existing lubricants blending plants in the country, the new plant is expected to serve as a strategic production hub for the company and its lubricants Castrol.
BP China president Xiaoping Yang said: “The new plant not only marks another milestone in BP’s business development in the country but also reaffirms our commitment to long-term investment in and for China.”
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By GlobalDataThe company expects to commence operation of the plant before the end of 2021, with annual production capacity set to be around 200,000t.
Spread across an area of more than 150,000m² and located in the Tianjin Economic-Technological Development Area (TEDA), in Binhai New Area, Tianjin, the plant will produce lubricants and greases, as well as additives, with a particular focus on synthetic products.
Production from the plant will be supplied to customers in north China.
