European de-industrialisation and Asia's narrowing technological gap with the region are the key challenges facing Europe's lubricants industry, delegates heard at the Union of the European Lubricants Industry (UEIL) congress today.
Europe accounts for 16pc of the global lubricants market, making it an important but not dominant region, UEIL president Mattia Adani said.
Europe's long-term de-industrialisation is weighing on lubricants demand, Adani said. The decline has been under way for 30 years, with industrial output in France, Germany and Italy still below 2018 levels.
Manufacturing accounts for 14pc of European employment and 14pc of its gross domestic product, with the latter share down from 18pc in 1995.
Adani also highlighted the narrowing technology gap between Europe and the rest of the world, particularly Asia, and China's rise.
"Europe and the western world are losing the technological advantage they have temporarily held for the last two centuries," Adani said.
Europe has also undergone a series of refinery rationalisations over the past decade that have affected the Group I base oils market. An estimated 55pc of European Group I production capacity has closed during that period, Adani said.
Group I base oils are predominantly used in industrial applications. The closures have made spot prices more susceptible to supply shocks.
