Friday, March 07, 2008

Lube giant KG forms Shanghai plant

World lube titan Freudenberg Chemical Specialities KG on Thursday opened its Shanghai plant with investment of RMB 200 million to boost the production of lube and release agent in China.

The new plant, the world's largest one ever built by the family enterprise has a maximum annual output of 13 thousand tons with an area of 30,000 sq m, comprising offices, warehouses, libraries and land reserved for future extension.

The move shows its great determination to expand business in China market.

China's demand for lube rose almost 50% between 1995 and 2005. It consumes about four million to 4.5 million tons lubricants annually, becoming the world's second largest market, the Germany-based company said.

Sales of lubricants in China stood at RMB 200 million last year, while the figure for lease agents was RMB 100 million, it revealed, adding that its accumulated investment in China will reach RMB 1.32 billion this year.

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