press release chevron oronite announces expansion of manufacturing footprint in China
Mitra Kashanchi, President, Chevron Chemicals and Pan Qunwei, Vice Director of Ningbo Economic & Technological Development Zone (NETD) Administration Committee signed the agreement. Chevron team and NETD officials, including Mr. Pan Yinhao, Beilun District Secretary, witnessed the signing ceremony.
SAN RAMON, Calif., May 22, 2024 – Chevron Oronite has made the final investment decision to expand its lubricant additive facility in Ningbo, China.
Chevron Oronite first announced its intention to build a manufacturing plant in China in 2015 and selected Ningbo as the preferred location in mid-2018. The facility is located within the Ningbo Economic & Technical Development Zone (NETD), which is near the Ningbo Port, one of the largest ports in the world in terms of annual cargo throughput. Construction commenced in late 2018 and the plant was fully commissioned in 2020. Commercial production started in 2021, helping ensure reliable supply of additive products in the China market. Building on this success, Chevron Oronite recently reached an agreement with NETD to expand the plant.
“This investment underpins Chevron Oronite’s dedication to provide exceptional reliability and reinforces our commitment to our customers in China,” said Mitra Kashanchi, president, Chevron Chemicals. Kashanchi continued, “Through our agreement with NETD, this next phase of development in Ningbo will better position us to help meet the needs of China’s market while maintaining close proximity to customers and critical raw material supply.”
As the newest addition to Chevron Oronite’s supply chain, the Ningbo facility provides flexibility and security of supply of select products across China, Asia and globally. The execution phase of this expansion will begin in July 2024 with an anticipated completion date in late 2026.
“We are proud of our Chevron Oronite China team for their dedication to the Ningbo facility and continued advancement of their organizational capabilities” said Keng Yang Lim, general manager, Manufacturing and Supply Chain, Asia-Pacific Region, Chevron Oronite. “With their learnings from the successful construction, start-up, and operations of the Ningbo plant, I am confident that the project team has a strong foundation to build on for this expansion that will help ensure the project is executed safely and reliably.”