HD Modern Shell will begin producing Group III base oils in 2027
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HD Modern Oilbank and Shell are strengthening their joint venture and making significant efforts to enter the field of high-performance Group III base oils. The joint venture HD Hyundai Shell Base Oils plans to commence full commercial production by 2027 through the expansion of its Damsan plant in South Korea. Over the past decade, the sales revenue from HD Modern Shell base oils has remained stable; building on this foundation, HD Modern Shell base oils are now expanding into high-end markets to meet the global demand for base oils with high viscosity indices, low sulfur content, and improved oxidation stability. Group III base oils are essential raw materials for engine oils, industrial lubricants, as well as in emerging application areas such as electric vehicles and data center immersion cooling systems. The Daesan plant has been producing Group II base oils since 2014, supplying them to over 50 customers in Asia, Europe, and North America. The planned expansion will enable the company to meet the needs of more advanced applications that require lubricant formulations with higher performance. A company representative said that HD Hyundai Shell base oils is leveraging its experience in meeting strict customer quality standards to launch a line of high-quality lubricants. The spokesperson added that technical cooperation with Shell will help ensure that the project remains on track for commercialization. Driven by increasingly stringent environmental regulations and evolving engine technologies, it is expected that base oils of Category III will continue to see growth. Through this strategic investment, the joint venture aims to strengthen its position as a global supplier of comprehensive base oils.
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Oil composed of a mixture of three types of base oils is considered semi-synthetic oil, whereas oil made from a mixture of the third, fourth, and fifth types of base oils is known as fully synthetic oil. The main functions of engine oil include: 1. Acting as a lubricant to reduce friction and wear during the operation of mechanical components. 2. As a coolant, it absorbs heat from the engine’s combustion chamber and piston top to maintain the engine’s normal temperature. The main difference between fully synthetic engine oil and semi-synthetic engine oil lies in: 1. Base oil composition: Fully synthetic engine oil incorporates various high-quality base oils, whereas semi-synthetic engine oil primarily uses base oil of type III. 2. Oil change interval: Fully synthetic oil can usually be used for a year or up to 10,000 kilometers before it needs to be replaced, while semi-synthetic oil requires replacement every six months or after 7,500 kilometers of driving. Fully synthetic engine oil, thanks to the purity and stability of its base oil components, provides excellent lubrication in various climate conditions. It also boasts excellent wear resistance, oxidation resistance, and corrosion resistance, providing comprehensive protection for the engine. Relatively speaking, although semi-synthetic oils are less expensive, their performance may not be on par with that of fully synthetic oils. Semi-synthetic engine oil is more suitable for vehicles with lower requirements regarding engine oil performance or for use when the budget is limited. Therefore, when choosing engine oil, decisions must be made based on the vehicle’s specific requirements and driving conditions.
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