Proven lubricants on the Chinese market
Zeller+Gmelin is reorganising its business in China. The Eislingen-based company is planning a new manufacturing site with its own production, development and sales team for lubricants and chemical products in 2021.
In addition, a manufacturing area for printing inks is also to be created in order to be able to mix and customise inks on site.
The lubricant manufacturer Zeller+Gmelin has been present in China through partners since the 1980s, since 2006 with its own subsidiary Zeller+Gmelin (Suzhou) Co. Ltd. in a joint venture in Luxu (80 kilometres west of Shanghai).
"Zeller+Gmelin's lubricants are increasingly popular in China and are enjoying ever stronger demand. In the beginning, business remained at a manageable level for a long time. But quality prevails," Siegfried Müller, Managing Director at Zeller+Gmelin, is convinced. Since 2010, turnover has risen steadily, by an average of 15 per cent annually. "The demand for high-quality lubricants in China continues to grow. For this reason, we are significantly expanding our presence close to our customers," says Siegfried Müller.
Looking to the future, the capacities at the existing site were no longer sufficient. "In 2018, as a chemical company, we also received new requirements from the local government, making it imperative to relocate production to a new site," says Siegfried Müller.
At the new production site, the Zeller+Gmelin subsidiary will now stand completely on its own feet. "Our joint venture partner was reluctant and did not want to make any major investments at the moment. Therefore, Zeller+Gmelin decided to buy back all shares completely and to relocate, rebuild and expand production independently," explains Siegfried Müller.
With the new plant in China, Zeller+Gmelin is able to offer its entire range of lei products to Chinese as well as global customers on site.
It is planned that the new plant will be expanded step by step and upgraded with modern manufacturing processes. The aim is to achieve cost-effective production with high flexibility and short throughput and delivery times.
The Printing Inks Division will also be integrated into the new production site. Siegfried Müller sees a lot of potential in this area. "We are completely rebuilding this area and also see a good sales market in China for our high-quality printing inks."
In addition to the expansion of production, the establishment of a development laboratory is planned. "The aim is to develop and produce more products in China that are tailored to local market needs. Together with our other development labs in Germany, England and the USA, we will then be able to offer our global customers on-site development and support on the three most important continents," says Siegfried Müller.
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