Re-Organization of Chemicals Industry Spurs Revenues for Chinese Lubricant Market, Says Frost & Sullivan

    SAN JOSE, Calif.--March 27, 2001--As a result of re-organization within the petrochemical and chemical industries, the Chinese Synthetic Lubricant industry should prove prosperous in the long term.
    According to new analysis by Frost & Sullivan (http://chemicals.frost.com), the Chinese Synthetic Lubricant Base Stock Markets produced $507 million in 1999 and are projected to reach $800 million by 2007.
    Even though concerns exist for growth restraint in the short term, market changes have sparked new investment opportunities. The hydrocracked base oils segment should benefit from the current market environment. Movement in the Chinese auto industry towards fuel-efficient, environmentally safe cars will boost revenue growth since hydrocracked oils can improve fuel economy.
    "The emerging hydrocracked base oils market is expected to experience rapid growth," says Frost & Sullivan Industry Analyst Hu Yang. "Hydrocracked base oils were unavailable in large volume until recently, when the government decided to invest in this segment."
    As China prepares to enter the World Trade Organization (WTO), Chinese manufacturers and distributors of synthetic lubricant base stocks will be forced to re-assess market strategies to meet the requirements of globalized business. Market participants must forge new distribution networks or expand current networks to effectively supply products to end-users.
    "Unlike its foreign counterparts, the Chinese synthetic lubricant industry suffers the ill effects of the dissociation of petrochemical and chemical industry," says Yang.
    Until recently, the chemical and petrochemical industries were run by separate state agencies and were in direct competition in the marketplace. Petrochemical and chemical companies are now regulated by the same state agency, and increased cooperation between the two agencies is expected to grow during the forecast period.
    This Frost & Sullivan report analyzes the markets for synthetic base stocks that comprise the major share of the total synthetic lubricants industry, including polyalphaolefins (PAO), polyalkylene glycols (PAG), esters, polyisobutenes (PB), hydrocracked base oils, and phosphate esters. It examines key market drivers and restraints, highlights emerging challenges and opportunities, and provides expert forecasts.
    Frost & Sullivan, headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the Chinese chemical and petrochemical industries for market trends, market measurements and strategies. This ongoing research is used to complement a series of research publications such as Chinese Synthetic Lubricant Base Stock Markets and is used to support participants with customized consulting needs. Executive summaries are available to the press.
    Along with providing in-depth strategic market consulting, Frost & Sullivan also offers custom consulting needs to a variety of national and international companies.

    Chinese Synthetic Lubricant Base Stock Markets

    Report: 4187-39