JAKARTA — Shell has begun production at a new grease manufacturing plant in Indonesia, expanding its local production capacity as the oil major seeks to strengthen supply to the country’s growing industrial and transport sectors.
The facility, located within Shell’s existing Marunda Lubricants Oil Blending Plant complex in Bekasi, has annual production capacity of up to 12,000 tonnes. Shell said the plant is one of its largest grease manufacturing facilities globally.
Jason Wong, Shell’s global executive vice-president for lubricants, said the investment reflected the company’s confidence in Indonesia’s industrial growth.
“The inauguration of Shell’s Grease Manufacturing Plant in Indonesia reflects our continued confidence in the country’s growth potential and our commitment to supporting its industrial development,” Wong said. “By strengthening our local manufacturing capabilities, we are enhancing supply resilience and bringing our products and expertise closer to customers.”
The plant will manufacture Shell Gadus grease products used in industrial applications including bearings and gears. It can produce different packaging formats, including drums, pails and fluid bags, for customers in manufacturing, pulp and paper, steel, smelting, power generation, transport, construction and mining.
The facility includes a contact reactor and other manufacturing technology that Shell said would improve production flexibility and efficiency.
Agus Gumiwang Kartasasmita, Indonesia’s industry minister, said the investment would support the country’s manufacturing base and industrial supply chains.
“We welcome the inauguration of Shell’s Grease Manufacturing Plant in Indonesia as part of efforts to strengthen Indonesia’s manufacturing base,” Kartasasmita said. “This investment is expected to support the needs of various industrial sectors, including manufacturing, mining, transportation, and other industrial activities that continue to grow.”
He added that Indonesia wanted the plant to develop beyond supplying the domestic market and eventually become part of Shell’s regional production network.
“Looking ahead, we hope that the journey of the Marunda GMP will not stop at meeting domestic market demand,” the minister said. “As its production capacity and competitiveness continue to grow, we hope that Indonesia can evolve into part of Shell’s regional production network.”
Construction of the grease plant began in 2024. The facility complements Shell’s existing lubricant blending operations at Marunda.
Shell completed an expansion of its Indonesian lubricants blending plant in November 2022, doubling annual production capacity to as much as 300mn litres from 136mn litres.
The new grease facility adds local manufacturing capacity to a market where industrial activity in areas such as manufacturing, mining and transportation is expanding.
Wong said the investment would also support Shell’s longer-term commercial presence in Indonesia.
“This investment also reinforces our long-term commitment to creating value for our customers, partners, and Indonesia’s broader economic development,” he said.
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