Huibert Vigeveno, Executive Chairman of Shell Companies in China, said: “This is a strategic step forward to make Shanghai an important commercial and operational centre for Shell in China and bring us closer to our customers, partners as well as market opportunities.”
Shell is leading international oil companies in lubricants supply, marine products, bitumen, and chemicals business in the China market. China is the second largest lubricants market for Shell next only to the United States. Shell spends billions of U.S. dollars each year sourcing equipment and services from Chinese companies for its businesses and operations in China and around the world. Its growing procurement spend in China is a reflection of the progress the company is making in implementing one of its strategic priorities in the country, which is taking Chinese enterprises overseas – leveraging China capability and growing business together.
Mark Gainsborough, Executive Vice President of Global Commercial, said: “Our new commercial hub in Shanghai reinforces Shell’s already broad commercial footprint in China. It builds on our headquarters in Beijing, R&D centre in Shanghai and extensive sales and distributor network across more than 200 cities.”
The commercial centre will allow Shell to get the most from its supply chain assets as well as customer service capacity and position Shell to meet the anticipated growth in demand, better serve its customers in China and maintain its industry leading position.
Shell is a leading international energy company in China with all its core businesses operating in the country and making good progress. Shell celebrated its 120 years in China in 2014 and is working towards its second centenary success.
Speaking of Shell’s strategic plan for China, Mr. Vigeveno said: “Shell continues to invest substantially in China in both upstream and downstream. We work in partnership with leading Chinese energy companies in China to develop cleaner burning natural gas and provide quality oil products for Chinese customers. We also take these partnerships internationally to develop cleaner energy resources for China and bring them to Chinese customers. This ‘In China, For China’ strategy continues to guide us in our second century in the country.”
Spokesperson, Shell Companies in China
Tel: (86-10) 6529 5484
Notes to Editors:
About Shell (Shanghai) Technology Limited
Shell opened its third global technology centre, dedicated to research and development into lubricants and oils, in Shanghai in 2014. The centre focuses on lubricant product development and application for China and the wider Asia region covering countries such as India, Indonesia, South Korea, Thailand and Vietnam.
The research work in this 8,600 sq m, nine storey building covers a wide range of product applications including passenger car motor oils (PCMOs), motorcycle oils (MCOs), heavy duty engine oils (HDEOs), transmission fluids, as well as industrial and speciality oils and greases. It also covers oils for the shipping sector.
About Shell Shanghai University
Located at the commercial centre, the Shell Shanghai University is the first training centre in China dedicated to supporting downstream global commercial businesses. It will provide training for over 4,000 distributor staff from more than 300 Chinese lubricant distributors. It will also provide training support for other downstream commercial businesses in China and other Asian countries. Trainees will go through blended learning via both virtual study online and face-to-face learning. At this stage, all of the training offered in Shell Shanghai University is free.
About Shell Lubricants
The term “Shell Lubricants” collectively refers to Shell Group companies engaged in the lubricants business. Shell sells a wide variety of lubricants to meet customer needs across a range of applications. These include consumer motoring, heavy-duty transport, mining, power generation and general engineering. Shell’s portfolio of lubricant brands includes Pennzoil, Quaker State, Shell Helix, Shell Rotella, Shell Tellus and Shell Rimula. We are active across the full lubricant supply chain. We manufacture base oils in eight plants, blend base oils with additives to make lubricants in over 50 plants, distribute, market and sell lubricants in over 100 countries.
We also provide technical and business support to customers. We offer lubricant-related services in addition to our product range. These include: Shell LubeMatch –the market leading product on-line recommendation tool. Shell’s world-class technology works to deliver value to our customers. Innovation, product application and technical collaboration are at the heart of Shell lubricants. We have lubricants research centres in China, Germany, Japan (in a joint venture with Showa Shell), and the USA. We invest significantly in technology and work closely with our customers to develop innovative lubricants. We have a patent portfolio with 150 + patent series for lubricants, base oils and greases; more than 200 scientists and lubricants engineers dedicated to lubricants research and development.
In 2014, Shell launched premium motor oils made from natural gas, Pennzoil Platinum in North America and Shell Helix Ultra outside of North America. These products are now available in more than 100 markets. These products contain Shell PurePlus Technology: a patented process which converts natural gas into a clear base oil, the main component of motor oils. This base oil offers better lubrication compared to traditional base oils made from crude oil.
Customer benefits include lower maintenance costs, longer equipment life and reduced energy consumption. One of the ways we push the boundaries of lubricant technology is by working closely with top motor racing teams such as Scuderia Ferrari and BMW Motorsport. These technical partnerships enable us to expand our knowledge of lubrication science and transfer cutting-edge technology from the racetrack to our commercial products.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation, associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December, 2013 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this press release, 3 June 2015. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain this form from the SEC by calling 1-800-SEC-0330.