Specialty lubricants company Freudenberg Chemical Specialities KG is readying itself to participate more closely in China’s economic boom. The Munich-based company has signed an investment agreement with the Shanghai Quingpu Industrial Park, thus taking the first step towards the planned construction of a production facility for speciality lubricants and release agents. Production is scheduled to start up in 2007, with annual production output set to increase rapidly by 2010.

The plan is to build a shared production facility for Klüber Lubrication and Chem-Trend, each part of Freudenberg Chemical Specialities KG, both of which operate sales companies in China.

As one of the world’s fastest-expanding economies, China has a special role to play for our own growth plans,” said the president and CEO, Hanno D. Wentzler. The demand for high-quality lubricants and release agents will be rising over-proportionately here during the years ahead, because the key industries important to our business are likewise achieving continuous growth.”

The sectors in China exhibiting particularly vigorous expansion include the textile, footwear, automotive, plastics, and tire industries.