Shell opens R&D center in Shanghai

With China tipped to become the world's largest lubricant market, Royal Dutch Shell Plc Tuesday opened its third global research center for lubricants in Shanghai.

The R&D center in Zhangjiang in the city's Pudong New Area joins Shell's two other lube research facilities in the German city of Hamburg and Houston, Texas in the United States. It will allow Shell to work closely with regional customers, including manufacturers of vehicles, ocean liners and industrial factories, to improve performance and fuel economy and reduce carbon-dioxide emissions.

Kline & Co, a lube market consultancy, predicts that China is set to overtake the US to be the world's largest lubricant market by 2015 or 2016.

"In addition to volumetric growth, quality levels are also improving, offering opportunities for all industry players," Kline said.