Freudenberg Chemical Specialities KG opens production facility in China

Specialty lubricants and release agents to meet growing demand of expanding Chinese economy

Qingpu, March 6, 2008 - Freudenberg Chemical Specialities KG (FCS), a Freudenberg Group company, has commissioned its new production facility in Qingpu near Shanghai after a construction period of just under one year. The Munich-based company has thus teamed up the activities of its two business units Klüber Lubrication (specialty lubricants) and Chem-Trend (release agents) in China at one location.

“Explosive economic growth in China is an especially important factor in terms of meeting our long-term strategic and economic goals,” Hanno D. Wentzler, President and CEO of the FCS Management Board, commented. “Demand for high-quality lubricants and release agents has been rising for years in keeping with growth in major key industries in China.” Particularly strong-growth sectors include the automotive, textile, plastics, shoe, tire and wood processing industries as well as bearing technology. China is one of the few lubricant markets in the world which, in contrast to the almost stagnating global market, continues on its growth path. Total consumption rose by almost 50% between 1995 and 2005. Annual consumption of all types of lubricants in China is between 4 and 4 ½ million metric tons, the second largest consumption worldwide.


With an investment volume of some 200 million RMB, the new production facility is one of the Munich-based group’s largest single investments. Klüber Lubrication and Chem-Trend, two business units of Freudenberg Chemical Specialities KG, will be producing specialty lubricants and release agents at the facility in Shanghai Qingpu Industrial Zone situated some 40 kilometers from downtown Shanghai. Both companies have been active in China for decades and already operate expanding sales companies in the country.

“Customer accessibility and a swift response to customers’ needs have always been a key to the success of our company,” Hanno D. Wentzler explained. “Our customers come from all major industrial sectors and set very high standards in terms of product quality and availability. A production facility with an integrated development lab and its own efficient logistics strengthens our market position over the long-term.”

Customers of FCS companies in China include the growing number of Chinese manufacturers as well as global producers (OEM) with their own manufacturing operations in China.

The new FCS plant in China is the group’s most modern facility. Its design is based on state-of-the-art production and logistics management. The site has a total area of over 30,000 m2. Approximately one third of this land has been used for buildings to house offices, warehouses and logistics facilities, labs and production halls, recreation rooms and supply services. The plant is one of the largest in the FCS production plant alliance and is designed for a maximum annual capacity of almost 13,000 metric tons of lubricants and release agents. The site layout includes an optional reserve of almost 20,000 m2 which can be used to meet future increases in demand.

The FCS companies Klüber Lubrication and Chem-Trend currently employ roughly 170 associates in China, the majority of whom are based at the Qingpu site. Medium-term plans envisage an increase in headcount to some 200. Most of the new jobs at both companies have been in production, logistics, technology and labs.

Further information at:
Freudenberg Chemical Specialities KG
Corporate Communications
Christian Zins
Geisenhausener Str. 7
81379 München
Tel. +49-89-78 76 1226
E-Mail: christian.zins@fcs-munich.com