Shell Builds Fat Factory In Indonesia With A Capacity Of 12 Million Liters Per Year

Photo: Doc. Antara

JAKARTA - National oil and lubricant company Shell announced that it is currently building its first fat manufacturing factory (gree) in Indonesia.

This factory is a further investment as well as complementing the lubricants Oil Blending Plant (LOBP) Shell in Marunda, Bekasi, West Java.

Jason Wong as Executive Vice President of Global Lubricants Shell said that this new Shell-owned factory will have a production capacity of up to 12 million liters of fat per year, making it Shell's third-largest fat lubricant production facility globally.

"This will help meet Indonesia's need for high-quality fat products," said Wong at the groundbreaking ceremony for the construction of the Shell fat manufacturing factory in Jakarta, quoted from Antara, Monday, March 4.

According to Wong, the construction of this fat factory is based on the fact that Indonesia is a strategic growth market for Shell, and plays an important role in the lubricant industry in the region.

When asked about the investment value of the factory construction, Wong chose not to reveal the details. He emphasized that the most important aspect of factory development lies in sustainable capacity and investment.

This, he said, can be seen from the example of the Shell factory in Marunda, which previously had a capacity of 136 million liters and then doubled it to 300 million liters per year.

Managing Director of Lubricants Shell Indonesia Andri Pratiwa said that this new fat factory will produce fat products branded Shell Gadus.

This product is used for various industrial sectors, including mining, agriculture, power generation, and manufacturing.

"We focus on production here for domestic consumption, that's what we prioritize first," said Andri.

Shell first invested in Indonesia by setting up its largest lubricant oil mixing plant or Shell's Lubricants Oil Blending Plant (LOBP) in Marunda, Bekasi in 2015.

The factory produces various lubricant products including Shell Helix (car engine levers), Shell Advance (motor levers), Shell Rimula (deseler heavy duty), Shell Spirax (transmission lubricant), and other industrial lubricants.

The factory's initial production capacity is 136 million liters per year, and then doubled to 300 million liters in 2022.