HD Hyundai Oilbank Partners with Shell to Enter High-Performance Lubricant Base Oil Market...Expands Plant

Targeting Full Group 3 Production by 2027
High Viscosity Index and Outstanding Eco-Friendliness
"Aiming to Become a Global Comprehensive Lubricant Base Oil Provider"

HD Hyundai Oilbank is making a full-scale entry into the high-performance lubricant base oil market through collaboration with global energy company Shell. HD Hyundai Shell Base Oil, a joint venture between the two companies, has begun expanding its Daesan plant in Seosan, Chungnam, to produce premium Group 3 lubricant base oil products.

HD Hyundai Oilbank announced on the 20th that HD Hyundai Shell Base Oil will invest in expanding the Daesan lubricant base oil plant, aiming to begin commercial operations in 2027. Lubricant base oil is a key raw material for various lubricants, such as engine oil and industrial lubricants, and is classified into Group 1 to Group 3 according to manufacturing process and quality characteristics.

A view of the HD Hyundai Shell Base Lubricant Base Oil Daesan Plant located in Seosan, Chungnam. HD Hyundai Oilbank

Group 3 products are classified as premium due to their high viscosity index, low sulfur content, and excellent oxidation stability, offering both high performance and environmental friendliness. Demand for these products is rapidly increasing in advanced sectors such as electric vehicles, high-performance automobiles, and data center immersion cooling systems.

HD Hyundai Shell Base Oil stated, "Based on our experience in meeting diverse customer quality standards with our existing Group 2 product lineup, we are now adding a premium product range. With technical cooperation from Shell, we will ensure that commercial production proceeds smoothly according to the planned schedule."

Established in 2014, HD Hyundai Shell Base Oil has expanded its business with a focus on Group 2 lubricant base oils. Currently, it supplies products to more than 50 countries worldwide, including Asia, Europe, and North America. With this entry into the Group 3 market, the company aims to become a global comprehensive lubricant base oil provider.

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