According to Xinhua News Agency, Royal Dutch Shell started its largest lubricant plant in China yesterday.

The plant worthing $100 million is located in Tianjin Binhai New Area, the industrial hub of Tianjin city. Up to 3,000,000 tons lubricant can be produced after the plant start function in the year 2015.

Shenjian, general manager responsible for Shell's mainland and Hong Kong market said,"as lubricant supply for northern China has been lagging behind, the newly built plant will focus on the northern market of the country."

Mark Gainsborough, executive vice president of Shell's global commercial business, said that China is one of Shell's most valued markets, which has been growing fastest in all its markets in recent years.

The vice president expected that market of lubricant in Asia will account for more than half of world's lubricant demand, and in 10 years, China may replace U.S. to be the largest lubricant market in the world.

The new plant in Tianjin is the seventh lubricant plants of Shell in China. The company has set up plants in places including Zhejiang province, Guangdong province, and the total production capacity has reached 1.5 million tons.

According to Shen, Shell's market share in China has been growing with more than 10 percent in the past years, but analysis from 315.com.cn stated that market share is still far less than PetroChina(601857.SH) and Sinopec Co.(600028.SH).

With the development of auto and construction industry, lubricant demand has been growing recent years, which also attracts foreign investment.