BP to Build New Lubricants Blending Plant in China

BP plc has announced plans to build a new lubricants blending plant in China, which will be the company’s third facility of this type in the country.

With expected investment of around $230 million (RMB1.5 billion), the new plant represents BP’s single largest blending plant investment worldwide.

BP has stated that the new facility will serve as a ‘strategic production hub for BP and Castrol’s lubricants business in China’ and complement the two lubricants blending plants already operating in the region.

“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 BP Downstream CEO, Tufan Erginbilgic, in a company statement.

“This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China,” he added.

The new plant is expected to start operation before the end of 2021 and will have an annual production capacity of 200,000 tons. With an area of over 150,000 square meters, it will be able to produce lubricants and greases for automobiles, industrial, marine, and aviation customers.


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