Freudenberg Chemical Specialities KG planning production facility in China

Production of speciality lubricants for Klüber Lubrication and mold release agents for Chem-Trend will meet rising demand levels in China's expanding economy

Munich, 10.21.2005 - Freudenberg Chemical Specialities KG is readying itself to participate more closely in China's economic boom. The Munich-based company has signed an investment agreement with the Shanghai Qingpu Industrial Park, and has thus taken the first step towards the planned construction of a production facility for speciality lubricants and release agents. Production is scheduled to start up in 2007, with annual production output set to increase rapidly by 2010.

"As one of the world's fastest-expanding economies, China has a special role to play for our own growth plans", said the President & CEO, Hanno D. Wentzler. "The demand for high-quality lubricants and release agents will be rising overproportionately here during the years ahead, because the key industries important to our business are likewise achieving continuous growth." The sectors in China exhibiting particularly vigorous expansion include the automotive, textile, plastics, footwear and tire industries. The plan is to build a shared production facility for Klüber Lubrication and Chem-Trend, each part of Freudenberg Chemical Specialities KG, and both of them operating already-expanding sales companies in China. Their customers come from almost all important sectors of industry, and are currently being supplied with products from manufacturing facilities outside China.

With this investment project, Freudenberg Chemical Specialities KG is responding primarily to the Chinese customers' increasingly stringent requirements in terms of delivery capabilities and service support. At the same time, purchasing volumes are rising from important international customers operating in China. "Close-proximity customer-responsiveness and a fast reaction to customers' requirements have always been key factors in our company's success", explains Hanno D. Wentzler. "A manufacturing operation for products specifically tailored to the needs of the Chinese market is therefore a logical step forward in this concept, and strengthens our long-term market position." Gaining further important Chinese manufacturers as customers, plus medium-term opportunities for exporting to other Asian markets are additional reasons for the planned investment.

The Shanghai Qingpu Industrial Park (SQIZ) - about 40 km to the west of the city center - offers excellent conditions for producers of chemical specialities, including site services, utility and disposal options. The concept for the facility is geared to maximized flexibility, e.g. with growth options built into the factory's layout.

Press contact:
Freudenberg Chemical Specialities KG
Corporate Communications
Christian Zins
Geisenhausenerstraße 7
D-81379 Munich
Tel.: +49 89 7876-1226
E-Mail: christian.zins@fcs-munich.com