Freudenberg has opened a new plant on Thursday in Qingpu, a district of Shanghai, China. Klüber Lubrication and Chem-Trend, two business units of Freudenberg Chemical Specialities KG, will be producing specialty lubricants and release agents at the facility for the Chinese market. Both companies are active in China and operate expanding sales companies in the country.

With an investment of 19 Million Euros the new Freudenberg Chemical Specialities plant in China is the group's most modern facility. 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 by Chinese customers.

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 4,5 million metric tons, the second largest consumption worldwide.

"High economic growth in China is an especially important factor in terms of meeting our long-term strategic and economic goals," Hanno D. Wentzler, the Freudenberg Group Regional Representative in China and President and CEO of the Freudenberg Chemical Specialities Management Board, commented at a press conference in Qingpu on March 6. "Demand for high-quality lubricants and release agents has been rising for years in line with growth in major key industries in China."

The Group and its partners have now invested some 130 Million Euros in buildings, new production facilities and modernized lines, environmental protection and quality assurance since 2000. Group sales in the country have more than doubled in this period and is about 340 million Euros. To be near the regional customers the Freudenberg Group is also investing in other projects in China. A new company for vibration control technology which will produce air springs for trucks, buses and trailers is currently being set up in Yantai. At the Suzhou location it is investing in a new line which will produce headliners for almost all types of automobile commonly available in China from August 2008.

The Freudenberg Group can look back on more than 100 years of business relations with customers in China. Freudenberg and its partners established their first subsidiaries in China over 25 years ago. Today, the company employs some 3,600 associates at 14 production facilities and 26 sales offices. The Freudenberg Group's joint venture partner NOK operates a further 7 production plants and employs an additional 5,200 people.

"As a family company, Freudenberg is well-known for its long-term commitment," Hanno D. Wentzler said. "China, like other regions in the world, sets high standards as regards quality, technology leadership and customer orientation. Our business development reflects this concept."

About Freudenberg

Freudenberg is a family company offering its customers technically challenging product solutions and services. The Freudenberg Group is first and foremost a supplier specializing in seals and vibration control technology, Nonwovens, lubricants and release agents. In addition, the Group has a presence in household products with the strong Vileda® brand as well as operating several service companies. The Freudenberg Group employs over 33,000 people in 53 countries and generates sales of more than 5 billion Euro. Freudenberg Chemical Specialities KG was set up in 2004 as a new company within the Freudenberg Group. The business group comprises a lean, market-driven organization with a board and corporate functions. The goal is to foster the innovation potentials in the group environment, and upgrade its worldwide market leadership in speciality lubricants and release agents. The company also operates three largely autonomous divisions: Klüber Lubrication München KG, headquartered in Munich, Germany, worldwide market leader for speciality lubricants; Chem-Trend, headquartered in Howell, Michigan, USA, the world's market leader for release agents, and OKS Spezialschmierstoffe GmbH, likewise headquartered in Munich, specializing in chemotechnical products for maintenance and repair. Together, the companies achieve annual sales of more than 5,3 billion RMB and employ around 2400 people at 56 facilities in 33 different countries. Freudenberg Chemical Specialities KG is headquartered in Munich, Germany.

^{(Source: Freudenberg Unternehmensgruppe)}