China start-up Honghai Lubricating Oil Technology Co. announced recently that it received a ¥10 million infusion from an investment fund and that it will use the money to expand its product offerings and to upgrade its factory.
The lubricant manufacturer and marketer, which is located in the Eastern China port city of Tianjin, said in an April 8 news release that it received the funds from Vision Capital, an investment firm based in Beijing.
Officials said the funds will be used for several purposes: to research and develop new products; to upgrade its production lines; and to increase marketing both at home and in foreign countries.
Founded in 2018, Honghai claims that its blending plant has capacity to make 100,000 metric tons of lubricants per year. It makes both automotive and industrial lubricants.
Officials said the infusion from Vision is intended to help the company continue growing. China’s lubricant market has grown significantly in recent years and could continue doing so, they said, but it has also become more competitive.
China and the United States are by far the world’s largest finished lubricant markets. China’s market grew rapidly since 2000 to catch up to America, but it’s economy has struggled since the onset of the COVID-19 pandemic.