BP is to build its third lubricants plant in China for around 1.5 billion yuan (£169 million) in the biggest investment of its kind for the oil giant.
The group said the new blending facility will help it meet “rapidly” growing demand in China, with a planned annual production capacity of 200,000 tonnes.
It marks BP’s single largest blending plant investment worldwide.
Xiaoping Yang, BP’s China president, said: “China is a key growth market for premium lubricants.
“The new plant not only marks another milestone in BP’s business development in the country but also reaffirms our commitment to long-term investment in and for China.”
The plant is set to start operation by the end of 2021 and will be able to serve customers across vehicles, industrial, marine and aviation markets, as well as meeting demand for special lubricants - such as synthetic products which offer superior engine protection and performance compared to conventional oils.
It will be based in Tianjin’s Economic-Technological Development Area, in north China.
BP-Castrol set up its first lubricants blending plant in Shenzhen, Guangdong province, in 1998 and the second in Taicang, Jiangsu province in 2005.