Hyundai and Shell Base Oil has increased the run rates at its API Group II base oil plant in Daesan, South Korea.
South Korea is is one of the world’s biggest merchant suppliers of base oils. The Hyundai and Shell Base Oil plant, a joint venture between Hyundai Oilbank and Shell, is one base oil producers in the country, the others being SK Enmove, S-Oil and GS-Caltex. Collectively they are key suppliers of Group II and Group III base oils to markets around the world.
Last year saw Korean base oil producers output about 4 million tons of base stocks.
Hyundai and Shell Base Oil has capacity to make 1.25 million metric tons of base oil annually, but the facility was running at 30%-40% of capacity toward the end of last year.
Recently the company said it increased the run rate at the plant to around 90% of capacity at the start of the year.