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lobal oil and gas giant Royal Dutch Shell unveiled on Friday its plan to build a lubricant blending plant in Indonesia to support growing demand for the company’s products.

The plant, which will be located in Marunda, North Jakarta, is expected to have an annual production capacity of 120,000 tons.

 “We are delighted to confirm this significant new investment in our supply chain in Indonesia, a fast-growing lubricant market,” Shell Global Commercial executive vice president Mark Gainsborough said in a statement. He said that the plant would become a production hub for Shell products for Indonesia.

Strong growth in lubricant demand is expected in Indonesia, driven by new vehicle ownership and production, construction and industrial activity — especially in the power generation and oil and gas production sectors, the company said.

The lubricant plant will be the company’s ninth to be established in Asia, after previously establishing similar plants in Singapore, Thailand, Malaysia, the Philippines, Vietnam, South Korea, Pakistan and India.

Shell has been importing finished products from blending plants in Singapore and Malaysia. The plan in Indonesia will allow the firm to produce its lubricant products, such as Shell Helix, Shell Advance, Shell Rimula, Shell Tellus and Shel Omala, domestically.

“This investment is testament to Shell’s confidence in the Indonesian market,” Darwin Silalahi, Shell Indonesia country chairman, said.