Industrial process fluid company Quaker Houghton broke ground last week on a new manufacturing facility in Zhangjiagang, China. The facility will expand the company’s production footprint in the region when it comes online in the second quarter of 2026.
The company already has multiple factories in China – including wholly owned facilities in Shanghai and Hong Kong and a joint venture in Wuhan, Wuhan Quaker Technology Co., which is 60% owned by Quaker.
China’s value-added industrial production approached U.S.$5.57 trillion in 2023, making up nearly 32% of global gross domestic product, according to the Chinese State Council Information Office.
Industrial process fluids are used across a swath of manufacturing sectors, such as steel and aluminum production, automotive and packaging in precision operations like drawing and forming, cleaning and corrosion prevention.
“This facility will be a critical part of our global supply chain, reinforcing our position as a market leader in industrial process fluids,” Jeff Fleck, chief supply chain officer at Quaker Houghton, said in a press release.
The company’s net sales in the first quarter of 2024 declined about 6% to $469.8 million from $500.1 million in the same quarter 2023. The decline was attributable to a decrease in selling price and product mix of approximately, combined with softer market conditions that persisted throughout 2023, the Pennsylvania-based company said in its financial reporting.