Kline FlashPoint Report Analyzes Shifts in the Chinese Automotive Lubricants Market

-- Shrinking Base Oil Supply and New Regulations Indicate That the Time is Now For Companies Looking to Stake a Claim --

LITTLE FALLS, NJ, OCTOBER 26, 2007 – Opportunities in automotive lubricants in China are shifting as the market undergoes consolidation amid rapid growth, according to a new report from global consulting and research firm Kline and Company. For companies looking to take advantage of this growth, the increasing complexity of the market has made establishing a presence there vital to maintaining viability, according to analysis contained in the new Kline FlashPoint report, The Automotive Lubricants Market in China: Market Overview and Winning Strategies.

“Now is the time for lubricant companies to get a foothold in this market and take advantage of gaps created by the recent changes in the legislative and competitive climate, but the market is tightening up quickly,” says Nancy Mills, FlashPoint project manager.

Kline’s report suggests that every lubricant company should have a plan for addressing the Chinese marketplace, but it must be well thought out with a solid understanding of the diversified local markets within the country.

Kline’s report provides high-level insights on business opportunities, as well as strategies for competing in this dynamic market. The report concludes that multinational companies (MNCs), while currently in control of the high-end lubricants market, will also need to increase their share in the much larger low-end market.

Acquiring local minor producers is one strategy for MNCs to quickly expand this area of their business in China. As a result, companies can expect more consolidation. To deal with this, the report offers ideas on how to flatten channels and control outlets to maximize performance and profitability as the market tightens.

The Kline FlashPoint series helps clients make critical decisions about how to respond to market opportunities and issues as they unfold. For more information about The Automotive Lubricants Market in China: Market Overview and Winning Strategies, visit www.klinegroup.com/reports/f0706.asp.

About Kline
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for nearly 50 years. For more information, visit www.klinegroup.com.

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