Hyundai and Shell construct base oil manufacturing plant

Shell and Hyundai Oilbank have confirmed their intention to construct a base oil manufacturing plant in Daesan, South Korea.

The joint venture between the companies — known as Hyundai and Shell Base Oil — will manage the commissioning, start-up and operation of the plant.

Base oils are the key component of finished lubricant product, making up on average 60–80 per cent of the end product.

The plant, which is expected to be fully operational in the second half of 2014, will significantly increase lubricant supply across the region, including China.