Hyundai and Shell set up lubricants joint ventureHyundai Oilbank said yesterday it set up a joint venture, Hyundai Shell Base Oil, with U.K.-based refiner Shell Petroleum two months after Hyundai and Shell signed a contract to forge a partnership in the base oil business.
Base oil is the basic material for lubricants products.
Hyundai and Shell have invested 60 percent and 40 percent stakes each in the venture.
The two refiners will build a base oil plant in Seosan, South Chungcheong, with a daily capacity of 20,000 barrels of base oil. Commercialization will start from 2014, Hyundai said.
The two will make the final decision in September and break ground on the following month.
“Hyundai Oilbank is aggressively pushing for new businesses,” an official said. “The base oil venture will serve as a cornerstone for the refiner to grow into a general energy company.”