HD Hyundai Oilbank and Shell's (SHELL) joint venture, HD Hyundai Shell Base Oil, will enter the high-performance, high-value-added lubricating oil market.
HD Hyundai Shell Base Oil announced on the 20th that it aims to commence commercial operations of lubricating oil starting in 2027 through an expansion investment at its Daesan plant. HD Hyundai Shell Base Oil's goal is to produce lubricating oil of Group 3.
Lubricating oil, an essential material and supplies for products such as engine oils, is a key component of various lubricating oil products, including engine oil and industrial lubricants. It is classified into Group 1 through Group 3 based on the manufacturing process and quality characteristics, with Group 3 lubricating oil possessing a high viscosity index, low sulfur content, and excellent oxidation stability, leading to a steady increase in global demand.
The Group 3 lubricating oil produced by HD Hyundai Shell Base Oil is expected to be supplied to the rapidly growing high-performance lubricants market, including high-performance vehicles, electric vehicles, and data center immersion cooling systems. Previously, HD Hyundai Shell Base Oil began commercial production of lubricating oil (Group 2) in 2014 and has since expanded its sales to Asia, Europe, and North America, currently supplying to about 50 countries around the world.
A representative from HD Hyundai Shell Base Oil stated, "Based on our experience in meeting the quality demands of various clients, we have decided to add a premium product line," and noted, "We will do our best to ensure we can commence commercial operations on schedule through technological collaboration with Shell."