The world's four largest factories in China to expand the demand for lubricant additives single agent

As an important component of lubricating oil, lubricating oil additives generally account for about 2%~30% of the total lubricating oil, and are widely used in the fields of
motor vehicles, metalworking fluids and industrial engines.
According to the LubTop Big Data Research Institute of China Lubricant Information Network, the current annual demand for lubricating oil additives is 4.
65 million tons (about 21% of the domestic share), and the market size has reached 15.
1 billion US dollars, of which 85% of the market share is monopolized
by the global "four big" Lubrizol, Infineum, Chevron Orenna, and Afton.

The lubricating oil products produced by state-owned enterprises and local private enterprises in the domestic market have accounted for about 70% of the domestic share, but the lubricating oil composite products currently used still mainly rely on the import of foreign additive companies and the production
of domestic joint ventures.
Among them, Lubrizol, Infineum and Chevron have domestic compounding production lines with production capacity of 175,000 tons, 100,000 tons and 100,000 tons, respectively, totaling 375,000 tons; Lubrizol has a single agent production capacity of 71,200 tons, and Infineum and Chevron have not yet completed single-agent production lines
.

Market participants believe that there is a large
space for import substitution in the global market of 100 billion yuan for lubricating oil additives.
Shanghai Lubricating Oil Industry Association predicts that the market demand for lubricating oil additives in China will still grow steadily, and the domestic demand for lubricating oil additives will reach 1.
12 million tons in 2023, accounting for about 20.
63%
of the global market in the same period.
Four major lubricant additive enterprises have built factories in China, and the company is expected to develop and strengthen cooperation
with internationally renowned lubricant additive enterprises.

Domestic lubricating oil additive enterprises have formed a relatively clear competition pattern after more than ten years of development, the industry has high entry barriers, strong customer stickiness characteristics, at present, Ruifeng New Materials, Wuxi South, Kangtai Co.
, Ltd.
, Shanghai Hairun and a few other enterprises in the first echelon in China, in the domestic market has a strong competitiveness
.
With the transfer of the automobile industry to China and the establishment of independent standards for domestic lubricating oil additives, in the long run, the improvement of the localization rate of composite agents in the future will bring greater growth space for domestic enterprises, and domestic lubricating oil additive enterprises still have a very large space for import substitution in
the medium and long term.

According to reports, the four major international lubricant additive companies Lubrizol, Infineum and Chevron Orena have established production bases in China, and their terminal products are mainly compound agents, and the production lines built are mainly composite agent production lines, which require a large number of single agents as raw materials
for production.
Industry experts said that the composite agent is a single dose physically blended, and on a 1:1 basis, the single dose demand gap corresponding to the production capacity of Lubrizol, Infineum and Chevron composite agent is about 300,000 tons, and the second phase expansion project of Infineum in Zhangjiagang was officially launched in 2020, which will further expand the single dose demand
of the four major manufacturers in the domestic market.