Operated by Lanxess subsidiary Rhein Chemie, the production facility received all governmental approvals and was ready for production by the end of 2008. At the new facility, Rhein Chemie plans to focus on manufacturing customized Additin brand additive formulations for industrial lubricants.

According to the study, Opportunities in Lubricants 2008: China Market Analysis, by Little Falls, N.J.-based Kline and Co., Chinas industrial lubricants segment in 2007 totaled 2.4 million tons and broke down as follows: general industrial lubricants, 38 percent; process oil, 36 percent; metalworking fluids, 12 percent; industrial engine oil, 11 percent; and grease, 3 percent.

Geeta Agashe, vice president of Klines Energy Practice said in a Dec. 9 web presentation on the study that power generation has led to significant growth in the turbine oil category in China, while compressor oils, refrigeration oils and industrial gear oils were also growing. Process oil consumption is also increasing in China, she added, primarily because the textile industry is big, and food processing is growing.

Rhein Chemies additives are used in metalworking fluids, hydraulic oils, industrial gear oils, turbine and compressor oils, rust preventives and greases.

Besides our production site for additives and service products for the rubber industry and our rubber research center, this is Lanxesss third key investment here in Qingdao, said Lanxess Greater China CEO Martin Kraemer. Rhein Chemie has been producing rubber chemicals in Qingdao since 1999 as part of a majority joint venture. Since July 2008, Lanxess AG has also operated a center for rubber research in Qingdao.

Lanxess employs more than 850 staff in China, including 179 in Qingdao.