Anglo-Dutch oil giant is set to cash-in on China’s booming automotive industry
Royal Dutch Shell will establish a new lubricants technical centre in China to capitalise on the nation’s growing automotive market, which is forecast to increase by 20 million units this year. The centre, slated to come online in March 2014, will focus primarily on next-generation automotive and industrial lubricants and greases.
VP of global commercial technology, Selda Gunsel, believes the new complex will be one of Shell’s major innovation hubs, alongside Houston, Amsterdam and Bangalore. Moreover, the geographical location will enable the Dutch giant to build partnerships with key OEMs in the region. “We want to be close to our customers, particularly the OEMs, to co-engineer our products,” said Gunsel, who has earmarked low-carbon fuels such as LNG and biofuels as key areas of interest.
Shell spends $1.2-1.3bn in research and development annually, more than any other global major. Gunsel also stressed the importance of bringing cleaner gas-to-liquids fuels, which are already becoming popular in Europe, and have even begun trials in the crowded city of Shanghai.