Amidst profound adjustments in the global industrial landscape and the sweeping wave of digital transformation, China’s lubricants sector is demonstrating entirely new dynamics across technological innovation, market expansion and supply chain development. The industry is not only advancing towards high-performance and customised products but also undertaking systematic upgrades in manufacturing, services and global footprint. ‘Smart manufacturing’ and ‘going global’ have emerged as pivotal themes for the sector’s development by 2025.
Empowered by Smart Manufacturing, Lubricant Factory Advances Towards ‘Unmanned Production’
Driven by industrial internet and artificial intelligence technologies, leading domestic lubricant enterprises are vigorously advancing the intelligent transformation of production lines. The application of technologies such as fully automated blending and filling systems, AGV logistics scheduling, and digital twin process optimisation has significantly enhanced production efficiency and product consistency.
‘Our newly established smart factory enables automated order scheduling, precise raw material distribution, and unmanned filling of finished products, achieving a 30% increase in production efficiency and a 15% reduction in energy consumption,’ stated the Production Director of a major lubricant enterprise. ‘Through real-time data monitoring and self-optimising process parameters, product quality stability has reached internationally advanced levels.’
This intelligent transformation not only reduces labour costs but also enables transparent management from raw material intake to finished product dispatch via a comprehensive quality traceability system. This robustly supports the stringent lubricant quality requirements demanded by sectors such as high-end equipment and new energy vehicles.
Accelerating Global Expansion: Chinese Enterprises Deepening Engagement in Belt and Road Markets
Faced with a complex international trade environment, Chinese lubricant enterprises have significantly accelerated their overseas expansion, particularly in high-growth potential countries along the Belt and Road. Through establishing local manufacturing facilities, setting up technical service centres, and forging deep partnerships with domestic distributors, Chinese companies are transitioning from pure product exports to comprehensive exports encompassing brands, technologies, and services.
‘Our blending plant in Southeast Asia has commenced full-scale production with an annual capacity of 100,000 tonnes, enabling rapid response to regional customer demands and delivery of bespoke lubrication solutions,’ stated the head of international operations at a listed lubricant technology company. ‘Localised manufacturing not only reduces tariffs and logistics costs but also enhances supply chain resilience against risks.’
Industry data indicates that China’s lubricant exports grew by 11.3% year-on-year in 2024, with particularly notable increases in high-end industrial lubricants and specialised greases. This signals a steady enhancement in the international competitiveness of Chinese lubricant products.
Supply chain security is accorded high priority, with achieving self-reliance and control over base oils and additives becoming a strategic focus.
In recent years, geopolitical turbulence and logistical uncertainties have heightened the lubricant industry’s focus on supply chain security to unprecedented levels. Particularly, the domestic substitution of critical raw materials such as high-end synthetic base oils and compound additives has become a shared priority for the sector.
Through industry-academia-research collaboration, leading domestic enterprises have achieved technological breakthroughs in synthetic base oils including alkyl naphthalene, polyalphaolefins (PAO), and ester oils, establishing industrial-scale production facilities. Within the additives sector, certain enterprises have successfully developed high-performance ashless dispersants and borate extreme pressure additives, progressively reducing reliance on imported products.
‘Establishing an autonomous, controllable, and diversified supply chain system is the cornerstone of high-quality industry development,’ emphasised an expert from the China Lubricating Oil Industry Association. ‘Future industry competition will extend beyond products to encompass supply chain resilience and resource integration capabilities.’
Deep Innovation in Service Models: Creating New Value Through the Integration of ‘Products + Services + Data’
The value focus within the lubricants industry continues to shift towards value-added services such as condition-based monitoring and early warning systems, oil analysis, and equipment health management, which have become key to securing differentiated competitive advantages. The integration of IoT sensors, big data analytics platforms, and specialised lubrication expertise has made predictive maintenance a reality.
‘Our intelligent lubrication health management platform deployed for major mining clients has successfully flagged multiple potential equipment failures, helping customers avoid over ten million yuan in unplanned downtime losses,’ stated the technical director of a service-oriented lubrication enterprise. ‘Selling “lubrication outcomes” rather than “lubricants themselves” has become the consensus among industry leaders.’