16 Sept 2026
Shell has expanded its lubricant manufacturing footprint in Indonesia with the commissioning of a new grease production facility at its Marunda site in Bekasi. The facility was formally inaugurated on September 15, 2026, following construction that began in 2024.
Shell has expanded its lubricant manufacturing footprint in Indonesia with the commissioning of a new grease production facility at its Marunda site in Bekasi. The facility was formally inaugurated on September 15, 2026, following construction that began in 2024.
Located within Shell’s existing Lubricants Oil Blending Plant (LOBP) complex, the new facility covers approximately 10,000 square metres and is designed to manufacture as much as 12 kilotonnes of Shell Gadus grease annually. With 11 grease manufacturing facilities across the world, Shell ranks the Marunda operation as its third-largest grease plant by production capacity.
The investment strengthens Shell’s existing manufacturing presence at Marunda. The company had previously expanded the site’s lubricant blending capacity, doubling annual output to 300 million litres in 2022. Shell has not revealed the capital expenditure associated with the new grease facility.
A key feature of the new operation is the use of contactor reactor technology, making Marunda the first Shell facility in the Asia Pacific region to adopt the system.
The technology uses a closed manufacturing vessel rather than the open-vessel process traditionally used for grease production. By controlling pressure and maintaining the reaction temperature at around 200°C, the system enables tighter control of the manufacturing process and greater consistency in the finished grease. After the reaction stage, the grease moves through a cooling kettle before entering a finishing kettle, where additives are incorporated and the product undergoes homogenization. An on-site laboratory supports quality assurance and operates in accordance with ISO 9001, ISO 14001 and ISO 45001 standards.
Shell said the new facility has primarily been established to meet growing demand within Indonesia rather than immediately serving as a regional export centre.
Mansi Madan Tripathy, Senior Vice President, Asia Pacific, Shell Lubricants, said demand in the Indonesian market is already higher than the plant's available capacity. This makes domestic supply the immediate priority for the operation.
According to Andri Pratiwa, President Director and Country Chair of Shell Indonesia, the company currently manufactures around 90% of the products it distributes locally. The addition of the grease facility is expected to increase the proportion of locally produced products to more than 98%. The plant's inauguration was attended by senior Indonesian government officials and Shell executives, reflecting the importance of the investment to the country's manufacturing and industrial sectors.
Among those present were Deputy Trade Minister Dyah Roro Esti Widya Putri, Minister of Industry Agus Gumiwang Kartasasmita and Secretary of the Directorate General of Foreign Trade Ojak Simon Simanurung. Shell was represented by Machteld de Haan, President of Downstream, Renewables and Energy Solutions, and Jason Wong, Global Executive Vice President of Shell Lubricants. Indonesian authorities also pointed to the possibility of the Marunda facility becoming part of Shell's wider regional supply network in the future. Any export-oriented role, however, is expected to follow the fulfilment of domestic market requirements.
The grease produced at Marunda is intended primarily for business-to-business applications across a broad range of industries. Target sectors include manufacturing, pulp and paper, steel, smelting, power generation, transportation, construction and mining.
Mining is currently the country's largest consumer of industrial grease, making it a particularly important market for Shell's new production capacity. The products will be supplied in several packaging formats, including drums, pails and fluid kegs, allowing the facility to cater to different industrial requirements.
With its increased local production capability, advanced reactor technology and focus on Indonesia's growing industrial demand, the Marunda plant represents a significant step in Shell's strategy to strengthen its domestic lubricant and grease manufacturing network. The detailed article is published by https://www.shell.com/ can be accessed from https://www.shell.com/business-customers/industrial-lubricants-and-specialty-fluids-for-business/news-and-media-releases/2026/shell-starts-production-at-its-grease-manufacturing-plant-in-indonesia.html
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