GS Caltex explores China's lubricants market

South Korea’s second largest refiner, GS Caltex Co., said it is planning to tap into the opportunities in China’s lubricants market, which is one of the world’s fastest growing market. “China currently trails the United States as the world’s second-largest consumer of lubricants, but is expected to become the world’s leader, boosted by the country’s growing automobile industry,” said Kim Eung-sik, head of the lubricants business for GS Caltex. The company launched a brand called Dongfeng GS Lubricants in October, which was jointly developed with Dong Feng Motor Lubricant (DFML), a unit of China’s Dongfeng Motor Corp. The two companies have plans to set up a joint venture in China. Kim said that automotive lubricants account for 64% of the Chinese market, while industrial lubricants account for 36%. There are now close to 2,000 companies competing for market share in China’s lubricant market which is estimated at 100 billion yuan (US$15.7 billion). (November 30, 2011)