We are in talks with the local, Tianjin operations of Shell and ExxonMobil to add their representatives to our leadership, and they are very much interested, Li Zhihe, head of the association, told Lube Report Asia.

Founded last month, Li said the association already has 121 members, most of which are private companies in the lubricant industry supply chain, including base oil distributors, lubricant blenders and packaging suppliers. Surprisingly, the local operation of state-owned oil giant PetroChina is a member, and Li said the Tianjin operation of state-owned Sinopec has also showed interest in joining.

Its not easy to talk state-owned companies into joining a local association, Li said. I think the fact that we are now led by the NDRC is a major reason making us appeal to them. Before the association was formed, some members were part of an independent chamber of commerce organized by the Tianjin companies in the lubricant industry, but it failed to attract big companies, he added.

Eventually, he expects the member companies to be composed of private companies, state-owned companies and multinationals, with maybe 20 percent of them located outside Tianjin.

With the tie to the NDRC, Li, said the association has a lot to offer to its members, such as input on polices that NDRC will help make, specifically those relevant to the lubricant industry.

The NDRC usually invites key industrial players and associations for discussions before and after it makes new policies. In this case we will act like a bridge between the government and our member companies, Li said.

The association is also working with taoyouwang.com, a business-to-business website for the lube industry. We plan to run a unified procurement platform on the website so that our members can buy large quantity products like base oils and packages at lower prices, Li said.

Another benefit for the members is that the association is planning to help them sell products outside China, Li said, adding that Mongolia is an early target.

We had a business trip to the country and learned there are indeed opportunities for our members, he added. We plan to open an office in Mongolia by 2018.

Moscow and Saint Petersburg will likely to be the next options, as there are local partners who are interested in bringing Chinese products to the Russian market. Currently, the priority for the association will be to form a team of members with expertise in different sectors of the lubricant industry to serve as a resource to members seeking advice.

In 2017, the association also plans to organize trips to Taiwan, Singapore and Malaysia for members to learn about new technologies, good business practices and management from big companies such as CPC Corp., a state-owned refiner in Taiwan.

Chinese private companies, especially [small and medium sized enterprises], usually lack the resources to innovate and grow. Therefore many of them are struggling in a homogeneous market. We want to offer them some help, Li said.