Lubricant industry competition escalated in China

Recently, more and more lubricant enterprises are increasing their investment in China to set up plants,  R&D center or promote their brands, including Castrol, Fuchs and Shell etc.

A report released by an international consultant company recently pointed out that the lubricant industry in China will develop at a 10% annual growth rate, BP, Koster, Shell, Mobil and Total are setting up 30 plants successively, with an annual production capacity of more than 1 million tons. Statistics show these foreign brands are taking about 80% of high-end market share.

Castrol set up a JV with Dongfeng Motors, Shell purchased 75% shares of two subsidiaries of Tongyi Lubricant. Fuchs had integrated the operation of its three subsidiaries in Shanghai City, Yinko City in Shandong Province and Hefei City in Anhui City.

Domestic lubricant enterprises are still a long way from being able to enter the lubricant high-end market due to their lack of sales channels and viable core technology.