BP Plans Lubricants Plant in China
Major oil and petrochemicals producer BP is planning to build a lubricants blending plant in China to help meet the country’s rapidly growing demand. The UK-based group is expecting to spend around $230 million on the project, which will be its single largest investment ever in a blending plant.
“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,” said Tufan Erginbilgic, CEO of BP Downstream.
The 200,000 t/y facility, BP’s third lubricants blending plant in China, will be located in the Tianjin Economic-Technological Development Area (TEDA) in Binhai New Area, Tianjin. Start-up is expected before the end of 2021.
“Strategically located in TEDA, this new plant will leverage Tianjin’s competitive advantage as a transportation hub, helping us ensure a stable supply of raw materials and smooth distribution of products,” said William Sun, supply chain director, China and North Asia at BP Lubricants.
The plant will be able to produce premium lubricants and greases for the automotive, industrial, marine and aviation industries in north China, as well as special lubricants and additives, with a particular focus on synthetic products, which BP said offer superior engine protection and performance compared to conventional oils.
At BP’s downstream investor day in June, the company forecast earnings growth of more than $600 million in the period 2016-2021 for its Castrol lubricants business.
BP’s two other lubricants plants in China are located in Shenzhen, Guangdong province, and Taicang in Jiangsu.