Bekasi. Shell Indonesia inaugurated its first grease manufacturing plant in the country on Tuesday, adding annual production capacity of up to 12,000 tons as the energy company expands its local manufacturing operations.

The new facility is located within Shell's lubricant oil blending plant complex in Marunda, Bekasi, and will produce Shell Gadus-branded grease for industrial applications including bearings and gears.

Construction began in 2024. Shell said the wholly owned and operated facility is one of its largest grease manufacturing plants globally.

The company said the investment would strengthen its local production capacity and supply resilience while bringing production closer to customers in Indonesia, where lubricants are used across industries including manufacturing, mining and transportation.

Industry Minister Agus Gumiwang Kartasasmita welcomed the investment and urged Shell to eventually develop the Marunda operation beyond serving Indonesia's domestic market.

“We welcome the inauguration of the Shell Grease Manufacturing Plant in Indonesia as part of efforts to strengthen Indonesia's manufacturing base,” Agus said during the opening ceremony.

“This investment is expected to support the needs of various industrial sectors such as manufacturing, mining, transportation and other industrial activities that continue to grow.”

Agus said the facility could eventually serve as a regional production base as its manufacturing capacity and competitiveness increase.

“The construction of the Grease Manufacturing Plant in Marunda is not merely the addition of a production facility, but part of strengthening Indonesia's manufacturing base,” he said.

“Going forward, we hope that the Marunda plant's journey will not stop at meeting domestic market needs.”

The minister said further development of the lubricants industry could help position Indonesia as a grease manufacturing hub supplying regional and global markets.

Shell Expands Marunda Manufacturing Base
Shell Lubricants Global Executive Vice President Jason Wong said the investment reflected the company's confidence in Indonesia's growth prospects.

“The inauguration of Shell's grease manufacturing plant in Indonesia reflects our continued confidence in Indonesia's growth potential and our commitment to supporting the growth of the country's industry,” Wong said.

“By strengthening local manufacturing capabilities, we are enhancing supply resilience while bringing our products and expertise closer to customers.”

The plant uses what Shell describes as contact reactor technology, which the company says provides greater operational flexibility and efficiency.

The investment further expands Shell's manufacturing footprint in Marunda.

In November 2022, the company completed an expansion of its lubricant oil blending plant at the same complex, more than doubling its annual lubricant production capacity to 300 million liters from 136 million liters.

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