Lubricants

Shell Indonesia lubes plant ramps up production, now producing marine lubricants

Shell Indonesia lubes plant ramps up production, now producing marine lubricants
Photo courtesy of Shell.

Just over one year from the start of its operations, Shell’s newest lubricant oil blending plant (LOBP), located in Marunda Centre, near Jakarta, Indonesia, has more than doubled its production slate and is now producing 99 different products.

This includes its latest additions, Shell marine engine oils Shell Argina, Shell Gadinia and Shell Melina.

Shell Argina and Shell Gadinia engine oils are used in marine propulsion engines for small- to mid-size vessels, marine auxiliary engines and for stationary power generation. Shell Melina is an advanced multifunctional crankcase system lubricant for low-speed marine diesel engines.

The local production of these marine lubricants is in response to the anticipated increase in demand for marine lubricants, due to the growing domestic maritime sector in Indonesia. This came about as a result of the Indonesian government’s maritime highway programme, which involves developing the country’s maritime infrastructure by upgrading ports throughout the archipelago. To support this initiative, Shell Marine ensures security of supply by providing stock point centres located in major ports in Indonesia to serve domestic demand.

The plant has also added new variants of Shell’s popular brands Shell Helix (passenger car motor oil), Shell Advance (motorcycle oil), Shell Rimula (heavy-duty engine oil), Shell Spirax (transmission oil) and Shell Tellus (hydraulic oil), serving Indonesia’s growing vehicle population and rapid development in key industrial sectors like construction, power generation and mining.

This plant has also enabled Shell to transition from almost exclusively importing its lubricants products from overseas to a vast majority of it being produced locally. Today, almost 70% of Shell’s lubricants in Indonesia are “Made in Indonesia.” These are produced out of the fully automated facility with three small pack filling lines, two drum filling lines and one bulk filling line. The quality of Shell’s products is ensured by regular testing at the world-class test laboratory located on-site.

“We are pleased by the progress we have made in one year of manufacturing operations here in Indonesia. This local capability enables us to be close to our customers and nimbly react to market demand, including our marine lubricant customers. This plant also enables our business to expand its reach and support our customers’ needs in Eastern Indonesia, particularly in Kalimantan, Sulawesi, West Nusa Tenggara, East Nusa Tenggara, Ambon and Papua,” said Alex Marpaung, lubricants supply chain operations manager for Indonesia.

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