Quaker Chemical's Business Segments

Quaker develops, produces, and markets a broad range of formulated chemical specialty products and offers chemical management services (“CMS”) for various heavy industrial and manufacturing applications in a global portfolio throughout its four regions: the North America region, the Europe, Middle East and Africa (“EMEA”) region, the Asia/Pacific region and the South America region. The principal products and services in Quaker’s global portfolio include: (i) rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); (ii) machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life); (iii) hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment); (iv) corrosion preventives (used by steel and metalworking customers to protect metal during manufacture, storage, and shipment); (v) specialty greases (used in automotive production processes, the manufacturing of steel, and various other applications); (vi) metal finishing compounds (used to prepare metal surfaces for special treatments such as galvanizing and tin plating and to prepare metal for further processing); (vii) forming compounds (used to facilitate the drawing and extrusion of metal products); (viii) chemical milling maskants for the aerospace industry; (ix) temporary and permanent coatings for metal and concrete products; (x) construction products, such as flexible sealants and protective coatings, for various applications; (xi) bio-lubricants (that are mainly used in machinery in the forestry and construction industries); (xii) die casting lubricants; and (xiii) programs to provide CMS.

A substantial portion of Quaker’s sales worldwide are made directly through its own employees and its CMS programs with the balance being handled through distributors and agents. Quaker employees visit the plants of customers regularly, actually work on site, and, through training and experience, identify production needs which can be resolved or alleviated either by adapting Quaker’s existing products or by applying new formulations developed in Quaker’s laboratories. Quaker relies less on the use of advertising, and more heavily upon its reputation in the markets which it serves. Generally, separate manufacturing facilities of a single customer are served by different personnel.

The Company recognizes revenue in accordance with the terms of the underlying agreements, when title and risk of loss have been transferred, when collectability is reasonably assured, and when pricing is fixed or determinable. This generally occurs for product sales when products are shipped to customers; for consignment-type arrangements, upon usage by the customer; and for services, when they are performed. Related to other income generation, Quaker receives license fees and royalties and includes them in other income when the amounts are recognized in accordance with their agreed-upon terms, when performance obligations are satisfied, when the amount is fixed or determinable, and when collectability is reasonably assured.

Quaker Chemical Corporation, also known as Quaker Houghton following its merger with Houghton International, is a global leader in industrial process fluids and chemical management solutions. The company specializes in a wide range of segments, products, and services tailored to various industries including automotive, metalworking, aerospace, energy, and more. Here is an extensive overview of the segments, products, and services offered by Quaker Chemical Corporation:

Segments

1. Metalworking Fluids:
- Quaker offers a comprehensive range of metalworking fluids designed to enhance performance, improve productivity, and reduce costs in machining and metal forming operations. Their products cater to diverse applications, including cutting, grinding, and forming.

2. Corrosion Inhibitors:
- The company provides corrosion protection solutions that are crucial for the longevity of metal components and assemblies. These products are formulated to protect against oxidation, rust, and other forms of corrosion in various environments.

3. Industrial Lubricants:
- Quaker Chemical supplies a variety of lubricants that improve the performance and life of machinery and components. These lubricants include oils, greases, and specialty lubricants suitable for different operational conditions.

4. Surface Treatment & Cleaners:
- Surface treatment products are designed to prepare and protect metal surfaces, enhancing adhesion, and providing a base for further coating or treatment. Cleaners are also provided to ensure surfaces are properly maintained for optimal performance.

5. Functional Coatings:
- This segment includes coatings that enhance the performance of various metal and composite materials. They are used in multiple applications where resistance to wear, heat, and corrosion is essential.

6. Process Chemicals for Automotive and Aerospace:
- Quaker manufactures specialized chemicals for both the automotive and aerospace sectors, focusing on improving manufacturing processes, enhancing product quality, and ensuring compliance with industry standards.

Oil & Gas Exploration and Production:
- Solutions tailored for the oil and gas industry include drilling fluids, completion fluids, and chemicals aimed at enhancing extraction and production processes.

8. Renewable Energy:
- The company is also involved in providing process chemicals and solutions for the renewable energy sector, focusing on manufacturing efficiencies and sustainability practices.

Products

- Cutting Fluids: These fluids are engineered for a variety of machining processes, offering extended tool life and improved surface finish.
- Emulsifiable Oils: Formulated to provide excellent cooling and lubrication properties during machining operations.
- Rust Preventatives: Products that protect metals from corrosion during storage and transportation.
- Hydraulic Fluids: High-performance hydraulic oils that meet stringent industry requirements.
- Specialty Process Fluids: Unique formulations designed for specific applications, such as quenching or metal treatment.

Services

1. Technical Support and Consultation:
- Quaker Chemical provides expert consultations to their clients, helping organizations select the right products and implement them effectively within their operations. This includes on-site assessments to determine needs and tailor solutions.

2. Chemical Management Services (CMS):
- Offering a comprehensive suite of services designed to help customers manage their chemical usage more effectively. This includes regular monitoring, reporting, and optimization of chemical consumption to enhance efficiency and reduce waste.

3. Custom Formulation:
- Quaker works with clients to develop customized solutions that meet unique operational demands, considering the specific materials and processes in use.

4. Training and Education:
- The company places a strong emphasis on training clients’ personnel in the correct use of their products, ensuring safe handling, application techniques, and maintenance practices.

5. Sustainability Initiatives:
- Quaker Chemical engages in projects aimed at reducing environmental impact through sustainable practices, offering products that are eco-friendly and promoting efficiency in resource use.

6. Research and Development:
- Continuous investment in R&D allows Quaker to innovate and create advanced products that address evolving industry needs, regulatory requirements, and technological advancements.

Quaker Chemical Corporation’s extensive range of offerings positions it as a key partner for businesses seeking to improve their manufacturing processes, extend the life of machinery and equipment, and enhance product quality across a multitude of industries.