In 2009, Shell lubricants, including Tongyi, achieved sales volume larger than any other international suppliers in China. The country is not only a key growth engine, but also an increasingly competitive market of the global lubricants industry.
James Shen, General Manager for Shell Lubricants in China, said: “Shell China Lubricants team is very proud to be a major contributor to this great success. Our high quality products and services with robust supply chain and sales network are the key drivers to extend our leading position as the number one international lubricants supplier in China. We will continue to provide our customers with excellent value and experience of using our products.
“2009 was another successful year for Shell Lubricants in China market. We have strengthened our brand leadership and continued to be a preferred supplier for our local and international customers. The newly-built, world-class blending plant in Zhuhai, uplifted distributor network and flagship ‘Sales 1st’ organization laid down a solid platform for our business future growth. We are confident to maintain our leading position in coming years.”
Li Jia, General Manager of Shell Tongyi, said: “As a joint venture with 75% Shell shareholding, Shell Tongyi plays an important role in this competitive market performance. Aligned with our business strategy, more synergic value has been incrementally uplifted and achieved in the areas of supply chain integration and operational excellence. We have continued with our effort to strengthen the Tongyi brand’s competitiveness, through the optimization of our product portfolio and distributor network. As one of the engines contributing to Shell’s overall performance in China, we are confident to maintain our growth trajectory.”
Despite one of the toughest operating environments since the Great Depression, Shell Lubricants trumped a tumultuous 2009, growing its global market share to 13.4% from 12.7% in 2008. It also widened its lead over its nearest competitor to 2.5%, up from 1.6% the year before. These figures are especially significant, given that 2009 worldwide lubricant demand declined 8.4% over 2008 to 35 million tonnes.
“Kline’s research shows that despite very challenging market conditions, Shell has continued to outperform the lubricants market as a whole and maintain our global leadership position,” said Chong-Meng Tan, Executive Vice President for Shell B2B and Shell Lubricants. “I believe this is the result of a consistent strategy that focuses squarely on customers, as well as leading technologies delivering superior products and services that add value for clients.”
On the industry’s competitive landscape Kline indicated that technological expertise has been, and will increasingly become, an important differentiator for lubricants suppliers. This is a key strength for Shell, whose technological leadership includes more than 70 years of innovation through investing in research and development (R&D), and recruiting world-class scientists to create some of the most advanced lubricant products available. Most recently, Shell broke ground for the construction of a technical services centre in Zhuhai, China. When operations start in 2011, the centre will provide comprehensive lubricating solutions to Chinese customers in the automobile, shipping and power industries. Shell also partners with leading original equipment manufacturers, customers and institutions in projects that enable testing of its products in some of the most demanding conditions.
Shell’s focus on customers has won the confidence of many who are market leaders in their sectors. Earlier this year, Shell and Hyundai Motor Company announced the renewal of their global lubricants agreement, making Shell the preferred lubricants supplier for a further five years. International mining companies such as Anglo American have also extended their contracts with Shell over the last 12 months.
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Shell Companies in China
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