Shell breaks ground on USD200 million lube blending plant in Jakarta

Royal Dutch Shell PLC began the construction of a USD200 million lube blending plant in Indonesia to meet demand from rising car sales in the country.
The plant, which is located in north Jakarta, has an annual capacity of 120,000 tons of lubricants, Shell Executive Vice President Mark Gainsborough said in a speech to mark the groundbreaking ceremony.
The Jakarta plant, which is Shell’s first in Indonesia, but its sixth in Southeast Asia, would allow the company to tap into strong demand for vehicles in Southeast Asia’s largest economy. Passenger-car sales in Indonesia, which is the second-largest car market in Southeast Asia after Thailand surged to an all-time high of 1.2 million units in 2012, spurred by strong economic growth in recent years.
“We have ambitious plans to grow our lubricants business here in Indonesia and today’s event marks another milestone in this journey,” Gainsborough said.