Overview of the Metalworking Lubricants Industry and Analysis of Global Leading Enterprises (with Report Table of Contents)

The primary raw material for lubricant blending and manufacturing enterprises is base oil, which accounts for approximately 30% of total production costs. Prices of both raw base oil and finished lubricant products fluctuate continuously with international crude oil prices; such price volatility affects the entire industry’s production costs and thereby increases operational risks. 3. Industry Competitive Landscape The metalworking lubricants industry is a fully competitive sector, comprising numerous foreign-brand companies as well as many domestic firms. Foreign brands—including Germany’s FUCHS, U.S.-based Master Chemical, Quaker Chemical, UK’s Castrol, and Switzerland’s BASO—hold advantages in R&D capability, product performance, and brand recognition. Among domestic brands, Sinopec Lubricant Company is a comprehensive enterprise offering diverse products including metalworking lubricants, automotive engine oils, automotive maintenance products, synthetic lubricants, and industrial oils; it leads the domestic market in scale, R&D capacity, and brand recognition. Aside from Sinopec Lubricant Company, numerous other domestic metalworking lubricant enterprises exist—mostly small- and medium-sized enterprises—resulting in intense industry competition. (1) FUCHS (Germany) As one of the world’s largest independent lubricant producers, FUCHS supplies the automotive manufacturing industry with engine oils, transmission fluids, shock absorber oils, metalworking fluids (oils), industrial equipment oils, metal forming agents, rust inhibitors, and greases—all widely recognized across the industry. Seizing the opportunity to support China’s automotive industry development, FUCHS entered the Chinese market as early as 1988, becoming one of the first international lubricant companies to invest and build factories in China. Currently, FUCHS China operates its headquarters in Shanghai, with production facilities in Suzhou and Yingkou, and maintains over a dozen branch offices across major Chinese cities. (2) Master Chemical (USA) Master Chemical is a leading independent manufacturer of high-quality metal cutting fluids in North America. Headquartered in Perrysburg, Ohio, USA, it operates an R&D center, metalworking fluid production plant, and equipment manufacturing facility; it also runs another metalworking fluid plant in Texas. Its European division, based in Suffolk, UK, provides products and technical support to countries across Europe. In China, Master Chemical has subsidiaries in Shanghai and Tianjin, plus representative offices in major cities, delivering products and technical support to China and the Asia-Pacific region. (3) Quaker Chemical Founded in the United States in 1918, Quaker Chemical rapidly evolved into today’s global multinational corporation. It is a worldwide enterprise engaged in research, manufacturing, and sales of chemical products primarily used in the steel, automotive manufacturing, and metalworking industries—and also provides chemical management services to manufacturers. Its main products include cutting fluids, cleaners, fire-resistant hydraulic oils, and rust inhibitors. (4) Castrol Castrol is now a subsidiary of UK-based BP, employing over 100,000 people and operating in more than 60 countries. Besides metalworking fluids, its product portfolio includes industrial equipment lubricants. Castrol’s core corporate values—technical pioneering, winning spirit, passion, and excellence—continue to define the company and remain central to its success. Castrol operates lubricant production plants in over 70 countries globally and maintains 12 technology centers in countries including the UK, USA, France, Germany, Italy, Japan, and Australia, ensuring Castrol lubricants remain among the most competitive products worldwide.

Spending Billions: Over 15 Chemical Giants Rush to Enter China!

On August 16, the Shanghai Municipal Ecological Environment Bureau announced information regarding INVISTA’s Yinglong Production Base expansion project: (i) debottlenecking upgrades at the HMD plant will increase annual HMD production capacity from 215,000 tons to 316,000 tons—an increase of 101,000 tons, or 47%; (ii) debottlenecking upgrades across four existing polymer production lines (CP1/CP2/CP3/BP1) will raise annual polymer production capacity from 151,900 tons to 189,600 tons—an increase of 37,700 tons, or 25%. On September 22, AkzoNobel announced the official groundbreaking of its East China Decorative Coatings Logistics Base in Songjiang, Shanghai, scheduled to commence operations in June 2023. The logistics base, located adjacent to AkzoNobel’s Shanghai Songjiang decorative coatings factory, represents an investment of approximately RMB 75 million and is expected to become AkzoNobel’s largest logistics hub nationwide upon completion. On August 19, Covestro announced the commencement of construction of its first physical recycling (MCR) production line dedicated to compounding recycled polycarbonate materials at its integrated Shanghai site. With an investment exceeding €27 million, this line is scheduled to begin operations in 2023 and will annually produce over 25,000 tons of high-quality polycarbonate and alloys containing physically recycled content. On July 8, Covestro officially broke ground on two new projects at its integrated Shanghai site in Caojing: a waterborne polyurethane dispersion (PUD) plant and an elastomer plant, representing a multi-million-euro investment. The new PUD plant—alongside its supporting polyester resin production line—is slated for completion in 2024, while the new elastomer plant is expected to enter operation in 2023. On July 28, INEOS signed a series of agreements with China Petroleum & Chemical Corporation (Sinopec), covering assets with combined annual production capacity of 7 million tons and a total value nearing USD 7 billion. These agreements include establishing a 50:50 joint venture to produce acrylonitrile-butadiene-styrene (ABS) using INEOS’s proprietary ABS technology. In July, Röhm Group expanded its PLEXIGLAS® molding compound plant in Shanghai; the upgraded facility is expected to be completed and operational in Q2 2023. In August 2021, Evonik announced the upgrade of its R&D base in Shanghai’s Xinzhuang Industrial Park, officially renaming it the “Evonik Shanghai Innovation Park.” Following the upgrade, the park will integrate fundamental research, product development, process development, pilot plants, application technology, testing and analytical services, and venture capital activities. South Korean battery materials company LG Chem announced it has acquired shares in Jiujiang Defu Technology—the third-largest copper foil manufacturer in China—for KRW 40 billion (approximately RMB 200 million)—to secure stable supply of critical battery materials. South Korean chemical company SK chemicals announced acquisition of a 10% equity stake in Shuye Environmental Protection—a Chinese polyester waste recycling company—for KRW 23 billion (approximately RMB 115 million). Nationz Technologies announced that its controlled grand-subsidiary Inner Mongolia Sinuo New Materials Technology Co., Ltd. has signed a capital increase agreement with POSCO Chemical (South Korea) and Zhejiang Huayou Cobalt Co., Ltd. Under the agreement, POSCO Chemical will contribute RMB 141 million in cash to subscribe to newly issued registered capital of the restructured Inner Mongolia Sinuo, acquiring a 15% equity stake post-transaction.

Quaker Chemical Expands China Operations to Strengthen Asia-Pacific Positioning

Jun 28, 2026

Quaker Chemical Corporation expanded its China operations with a new Zhangjiagang manufacturing facility and an enlarged Shanghai laboratory. These moves aim to strengthen its Asia-Pacific footprint for steel, automotive, and mining sectors while investors monitor cost pressures and margin improvements.

Simply Wall Street

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Allspring Global Investments Reduces Stake in Quaker Houghton

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Quaker Houghton (NYSE:KWR) Price Target Lowered to $175.00 at Jefferies Financial Group

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Quaker Houghton (NYSE:KWR) Rating Lowered to Hold at Wall Street Zen