20 years' presence in China
The leading independent lubricant manufacturer FUCHS PETROLUB today opens its new Chinese factory in NanXiang (Shanghai province). The modern factory will serve as the headquarters for FUCHS' activities in China as well as the research and development centre for the FUCHS Group in Asia. With the opening of the new factory, FUCHS is opening a new chapter in China and the neighboring countries after a 20 year presence in the region.
China has already become the world's second-largest market for lubricants.
On a site covering 42,000 square meters, the factory, which can be expanded modularly and in which the company has invested EUR 10 million, offers production capacities which are adjusted to reflect growing demand and a development centre which is equipped with state-of-the-art technology. Today, more than 6% of FUCHS Group sales are generated in China. In 2008, however, the threshold of one billion RMB is expected to be almost broken. Due to the increasing strength of the internal market, FUCHS expects to see good growth opportunities in China in the coming years and sees excellent prospects for its current initiative.
By opening this factory in Shanghai province, FUCHS will employ a staff of 145 making it one of the larger employers in this region. This will emphasize its importance as a local centre for training.
The FUCHS Group has been present in this important market for 20 years. FUCHS acquired its first factory in China in 1988 in Yingkou in Liaoning province. 113 people are employed there today. Ten years later, the second factory was built in Hefei in Anhui province, where 59 people are presently employed. One year later, FUCHS constructed its original factory in Shanghai.
In total, the FUCHS PETROLUB Group employs almost 320 people in China.
In the 2007 fiscal year, the FUCHS PETROLUB Group generated sales revenues of EUR 1.4 billion and a profit after tax of EUR 120 million. Almost 3,900 employees around the world contributed to this success. Further factory expansions and new factories are currently being planned in Germany (Mannheim and Kaiserslautern), in India and in Brazil.
Mannheim, October 17, 2008
FUCHS PETROLUB AG
Public Relations
Friesenheimer Str. 17
68169 Mannheim
Phone: ++49 (0) 621 3802 - 105
The press release can also be found on the Internet at www.fuchs-oil.com.
Important note
This press release contains statements about future development that are based on assumptions and estimates by the management of FUCHS PETROLUB AG. Even if the management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ significantly from these assumptions and estimates due to a variety of factors. These factors can include changes to the overall economic climate, changes to exchange rates and interest rates and changes in the lubricants industry. FUCHS PETROLUB AG provides no guarantee that future developments and the results actually achieved in the future will agree with the assumptions and estimates set out in this press release and assumes no liability for such.