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Gong Xinxing, chairman of Chongqing Xinyuan Motorcycle Manufacturing Co., Ltd. recently confirmed to reporters that by the end of November, Xinyuan had signed an agreement with MOLY, the second largest lubricants company in Germany, and Chongqing Zhongtian Advanced Lubricant Co., Ltd., and the three parties will be in Jointly invest in a factory with an annual output of 10,000 tons of lubricants. The origin is quite deep Xinyuan and Germany MOLY are old friends. In 2003, Xinyuan invested 450,000 euros to sponsor Chinese soccer player Shao Jiayi to enter the 1860 football club in Munich, and Xinyuan became the third largest sponsor of 1860. MOLY is precisely the largest sponsor of 1860. Xinyuan was able to quickly establish a cooperative relationship with MOLY. In the first half of last year, Xinyuan began to become the domestic distributor of MOLY lubricants. However, Gong admits yesterday that the price of MOLY will be sold at 5 euros per litre (equivalent to about 55 yuan), while the general price of domestic lubricants is 15 yuan, the cheapest is only 6,7 yuan, the price difference is very large, so more than 1 year The proxy effect is not satisfactory. Huge Market China has now become the world's second largest consumer of lubricants. In 2002, China's lubricating oil consumption reached 4,405,400 tons, and the market size was 22 billion yuan. Industry insiders said that the country's lubricant consumption will still grow at a rate of 10%-12% per year. The lubricating oil used by Chongqing Mobang each year in the total loading accounted for about 1/2 of the national motorcycle brand's lubricants market. Coupled with the automobile industry, Chongqing's market demand for lubricants was nearly 300,000 tons. Therefore, Shell, Mobil, and BP flocked to the Chongqing lubricants market. In MOLY's project implementation plan for Chongqing, the specific division of labor of the three parties is: MOLY provides technology and brand for automobile and motorcycle lubricants. Now Zhongtian is responsible for production with an annual production of approximately 4,000 tons. Xinyuan mainly provides sales channels. The initial plan of MOLY Chongqing plant will reach an annual capacity of 10,000 tons, 40% of motorcycle lubricants, and 60% of automotive lubricants. In terms of automotive lubricants, the main consideration is the local auto market, and it will strive to OEM for Changan Ford. Xinyuan said that lubricating oil will become Xinyuan's new profit growth point. It is reported that the profit rate of automobile and motorcycle lubricants is above 10%. After MOLY built Chongqing into its Asian production base, the output value is expected to reach 50 million US dollars. Industry Actions In recent years, the lubricant industry has made frequent moves. CNPC's Kunlun Lubricants won the CCTV Olympic Gold Medal Championship with a bid of 32.8 million yuan. In September F1 Grand Prix held in Shanghai, Sinopec's Great Wall Lubricant was named; private lubricants giant Beijing unified lubricants 36 million yuan won the bid for the first option of CCTV A special unit. In Chongqing, at the end of last year, a famous brand of local lubricants was transferred to the “Great Wallâ€. At the beginning of the year, it was reported that SK Group, one of the world’s top 500 companies, will establish a base for industrial oil and lubricant filling in Changshou. In the interior of Chongqing Motorbike, the lube oil market is also growing everywhere: Jialing has long-term cooperation with British BP, and BP uses Jialing outlets to sell special lubricants. In May and September, Kunlun Lubricants signed a contract for loading oil with Lifan and Construction respectively.