Recruiting in China

By Yang Huiwen

WHILE retrenchments are occurring across many sectors, the lubricants business of oil major Shell is expected to keep hiring here as it continues to expand its regional operations.

No details were given on Monday on numbers but extra manpower is needed to expand its grease plant, where an upgrading is in process that will allow production capacity to be doubled. The work will be completed sometime next year.

The grease-making facility forms part of Shell's larger lubricant oil blending plant at a 5.5 hectate site in Woodlands North. The plant employs 170 people.

It produces greases and lubricating oils for the local and export markets.

About 90 per cent of its products are sold in 52 markets worldwide, including Australia, Indonesia, China and Kuwait.

Lubricant oils, or lube oils, are high-value products used to improve the efficiency of machinery by reducing wear and tear.

The plant also manufactures marine lubricants, which are supplied to ships that stop in Singapore through bunker vessels.

'Although not very big in land area, this plant has one of the highest production capacity in the Shell network globally, and is the primary source of Shell Lubricants' supply network in Asia,' said Shell Lubricants Asia-Pacific vice president Tim Ford.

'The growth in our Shell Woodlands North operations in the current economic climate is a testament to our proven track record and leadership in fuels innovation.'

Shell's regional expansion is driven by strong demand for lubricants in industrialising countries such as China.

Last year, Asia overtook North America as Shell's largest lubricant consuming region in the world, accounting for 38 per cent of sales compared with a 28 per cent share in the US.

Demand for lubricants in the Asia-Pacific is expected to grow at about 5.1 per cent a year until 2017, according to industry figures, while demand in the US and Europe is expected to decline.

Shell, the largest international lubricants supplier in Asia by sales volume, is also the leader in the lubricants business. It captured 13 per cent of the world market last year, two percentage points in front of Exxon Mobil, according to consultants Kline & Company.

Shell also has lubricant blending plants in Thailand, Malaysia, the Philippines, Indonesia and China.

It is building its sixth blending plant in China - in Zhuhai in Guangdong Province. This will start operating next year.

Shell's lubricants business employs about 10 per cent of the oil major's total workforce worldwide.