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Wed 9 Nov 2016, 10:13 GMT

Demand prompts Shell to ramp up marine lube production in Indonesia


Shell aims to ensure the continuity of supply with stock point centres at major Indonesian ports.



Just over a year since the launch of operations, Shell's newest lubricant oil blending plant, located at Marunda Center, near Jakarta, Indonesia, has more than doubled its production slate and is now producing 99 different products, including Shell's latest 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.

Shell says the local production of these marine lubricants is a direct response to the increase in demand, which is a result of the growing domestic maritime sector in Indonesia.

The Indonesian government's maritime highway programme has developed the country's maritime infrastructure by upgrading ports throughout the archipelago. To support this initiative, Shell Marine says it is ensuring the continuity of supply by providing stock point centres located in major Indonesian ports to serve domestic and international marine customers with the products they need, when and where they need them.

The 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 percent of Shell's lubricants in Indonesia are 'Made in Indonesia'. They are produced out of its 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," the company says.

Alex Marpaung, Lubricants Supply Chain Operations Manager for Indonesia, remarked: "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."


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