BP today announced plans to build a new lubricants blending plant in China to help meet the country’s rapidly growing demand for high quality lubricants. The new plant will be BP’s third lubricants blending plant in China and, with expected investment of around RMB1.5 billion (US$230 million), will also represent BP’s single largest blending plant investment worldwide.
“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 chief executive officer Tufan Erginbilgic. “This third lubricants blending plant demonstrates our commitment to strengthening our competitiveness and building a sustainable lubricants supply chain in China.”The new plant 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 China.“
China is a key growth market for premium lubricants,” Xiaoping Yang, BP China president, remarked. “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.”
The new plant, expected to start operation before the end of 2021, 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 premium lubricants and greases for automobiles, industrial, marine, and aviation customers, as well as special lubricants and additives, with a particular focus on synthetic products which offer superior engine protection and performance compared to conventional oils.
Located in the Tianjin Economic-Technological Development Area (TEDA), in Binhai New Area, Tianjin, the blending plant will supply premium lubricant products to customers in north China. Tianjin is the largest coastal open city in north China and one of four municipalities directly under the Chinese Central Government.
“Strategically located in TEDA, this new plant will leverage Tianjin’s competitive advantage as 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, BP Lubricants.
To supply high quality lubricants to the fast-growing Chinese market, BP-Castrol set up its first lubricants blending plant in Shenzhen, Guangdong province in 1998 and the second in Taicang, Jiangsu province in 2005.
BP press office, London: +44 (0)20 7496 4076, email@example.com
BP press office, China: +86 (0)10 6589 3878, firstname.lastname@example.org
In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement. This press release contains certain forward-looking statements – that is, statements related to future, not past events - which may relate to one or more of the financial condition, results of operations and businesses of BP and certain of the plans and objectives of BP with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in
our most recent Annual Report and Form 20-F under “Risk factors” and in any of our more recent public reports.
Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.