27 Jun 2025
HD Hyundai Oilbank and Shell are set to strengthen their joint venture by entering the high-performance Group III base oil market. Their joint company, HD Hyundai Shell Base Oil, plans to begin full-scale commercial production of Group III base oils by 2027 through an expansion of its Daesan plant in South Korea.
HD Hyundai Oilbank and Shell are set to strengthen their joint venture by entering the high-performance Group III base oil market. Their joint company, HD Hyundai Shell Base Oil, plans to begin full-scale commercial production of Group III base oils by 2027 through an expansion of its Daesan plant in South Korea.
After a decade of steady revenues from Group II base oil sales, the company is moving into the premium segment to address rising global demand for base oils with higher viscosity indices, low sulphur content, and superior oxidative stability. Group III base oils are crucial components in formulating advanced engine oils, industrial lubricants, and new applications such as electric vehicle lubricants and data centre immersion cooling fluids.
The Daesan facility has been producing Group II base oils since 2014, supplying customers in over 50 countries across Asia, Europe, and North America. The upcoming expansion will enable the plant to manufacture higher-specification products needed for advanced lubricant formulations.
A company representative highlighted that HD Hyundai Shell Base Oil will leverage its extensive experience in meeting stringent customer quality requirements to introduce this premium product line. The spokesperson also emphasised that technical collaboration with Shell will be key to ensuring timely commercialisation of the project. The demand for Group III base oils is expected to continue growing due to stricter environmental regulations and evolving engine technologies.
Through this strategic investment, the joint venture aims to reinforce its position as a leading global integrated supplier of base oils.
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The detailed article published by https://www.koreaherald.com/ can be accessed from https://www.koreaherald.com/article/10514157
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