FUELS & LUBES INTERNATIONAL
Quarter Two 2015
38
In March, U.S.-based Chevron Oronite Company LLC signed an
investment agreement to build an additive manufacturing plant in
Ningbo, Zhejiang Province, China. Jeff Waite, general sales man-
ager for Asia Pacific at Chevron Oronite based in Singapore, shared
that Ningbo was optimal because of its location in eastern China
near Shanghai, offering access to the rest of China and the world.
Ningbo is one of the largest ports in the world in terms of annual
cargo throughput. Its proximity to raw materials, as well as to its
Chinese customers, are its main selling point, Waite said.
F E A T U R E
WHEN DECIDINGWHERE
to build a facility, Waite said, there
are several factors at play: “Where
are the people that are going to
run your facility, now and in the
future? Where are your customers?
Where are you going to get the best
distribution from an import/export
perspective?”
Additionally, it’s important to be
in an area that will continue to have
strong infrastructure and growth,
andWaite sees inner China as “part
of the central hub” of such growth.
The plant is scheduled to be on
stream in 2019, although the current
project timeline is still under review.
While Waite declined to
comment on the plant’s capacity,
he explained that further phases of
expansion “will depend on market
conditions.”
The automotive market in Asia
has been growing steeply over the
past years, andWaite estimates that
it will continue to grow, though
perhaps not at the same rate as it has
been growing in the past.
Furthermore, he said, it is
difficult to predict the pace at which
emissions standards and engine
oil performance requirements will
Chevron Oronite adds to its supply
chain in Asia with Ningbo plant
change going forward, as these
factors affect additive manufacturers
everywhere.
However, current market
conditions are not as big of a concern
when making long-term capital
investments like the Ningbo plant,
he said, because the demand will
eventually be there.
“You have to set aside near-term
conditions,” he said. “We felt it was
right, based on our business needs
today, to….put a stake in the ground
in China. We know we’re going to
need something in the future.”
The most important thing
for Oronite is to continue to be a
reliable supplier in a country that,
according to Waite, is going to be
the largest growing country from a
demand perspective.
“Oronite does intend for this
to be a world-scale additives plant,”
Waite said, but this will happen
over time and when we feel the
market is calling for it. This plant
joins Oronite’s other manufacturing
facilities in Belle Chasse, La., U.S.A.;
Gonfreville, France; Singapore and
Mauá, Brazil.
It is not entirely known what
Oronite will produce at this plant,
or howmuch of it, but according
to Waite, these decisions are not
set in stone ahead of time. Echoing
Chevron Oronite President
Desmond King’s words during the
signing ceremony, Waite said, “We’re
going to figure out what our ultimate
needs are as time evolves.”
He is, however, confident and
“satisfied with the capacity we have
today to supply the region for the near
future given that we currently have
the largest additives manufacturing
plant in the region in Singapore.”
By Alison Gaines
At the signing ceremony, Lu Ziyue, mayor of Ningbo (left), and Desmond King, president, Chevron Oronite (right).
Jeff Waite with F&L
Asia Editor-in-Chief
Vicky Villena-Denton
