Shell plans lubricants centre in Shanghai

Shell is setting up a lubricants technical centre in Shanghai to work closer with customers in the region.

Selda Gunsel, vice president for downstream global commercial technology of Shell Global Solution Downstream, said that the centre, in the setting of which she has played a key role, would be up and running in the first quarter of 2014. It will be Shell's first such centre in Asia.

The establishment is in line with the economic growth of the region. The centre will enable Shell to work closer with regional customers, who are manufacturers of vehicles, ocean liners, and also industrial factories.

The research and development and the co-engineering between lubricant-makers and the auto-motive original equipment manufacturer will enable the lubricant users to increase the performance of vehicles or machinery and reduce carbon-dioxide emissions, Selda said.

She added that the lubricant-makers and engine-makers need to work closer on product development as both have to jointly test the products in different climates and locations.

Shell is also interested to join with customers in Asean in research and development, especially in Thailand, which is the leading auto production base in the region. She added that Thailand and other Asean countries have shown strong economic growth and have a chance to improve their energy efficiency.

Shell has spent US$1.3 billion (Bt39 billion) to $1.5 billion annually on research and development of which one of the outstanding products is the gas-to-liquid-based products. According to Shell, it has spent nearly 40 years researching technology to convert natural gas-to-liquid into products used for transport fuel, lubricants and the raw materials for chemicals and detergents.

Auto production in Thailand this year is expected to increase to between 2.5 million and 2.6 million units from 2.4 million last year.