Shell lubricants plans to expand production

Shell Lubricants Egypt’s MD, Saher Hashem, recently stated that the company plans to increase its production capacity to 100m litre of motor oil, are underway. He told Daily News Egypt in an exclusive interview. “We began implementing the plan to develop the factory and increase its production capacity to exceed 100m litres of motor oil in the coming years,” confirmed Hashem.

He also said that there is great potential for the growth of the automotive oils market in Egypt. “Shell Lubricants Egypt’s ambition for the industrial sector in the country is to push forward oil consumption to rates higher than the currently prevailing rates,” added Hashem.

As for the oil market in Egypt, Shell’s share exceeds 17% of the total value of the market.

Saher Hashem noted that Shell is currently focusing on meeting local market needs of oil therefore, the process of exporting their production abroad is not currently their goal, but it is within their future plans.

The plan to expand comes shortly after Shell lubricants division was named No. 1 global lubricants supplier for the tenth year in a row. This announcement was made to Egypt Oil and Gas news.

Also according to  Kline & Company’s Global Lubricants Industry: Market Analysis and Assessment reports since 2015 show that Shell has had product sales estimated between 4,400 – 4,600 kilotons of finished lubricants in 2015, divided into 36% in consumer automotive, 34% in industrial and 30% in commercial automotive sectors. This is reported to have been stabilized to date.

Shell’s Downstream Director, John Abbott, stated that the company has consistently invested in upgrading and growing its world-class supply chain, to align with demand in emerging markets.

According to Abbot, Shell invested hundreds of millions of dollars in its lubricants supply chain, upgrading three lubricant blending plants, building four new lubricant blending plants, and constructing a new grease manufacturing plant as well as one new Group II base oil manufacturing plant.

In other parts of the world like Philippines and Malaysia Shell lubricants has a market share of 30% and 27 % respectively. This is according to a Kline & Company report.