FUCHS Lubricants Investing in Africa
Lubricants manufacturer FUCHS Lubricants remains upbeat about the future and is investing in excess of R250million in the construction of a warehouse and office complex scheduled for completion by February 2022.
SA Mining recently caught up with Andrew Cowling, sales director, FUCHS Lubricants South Africa to chat about market conditions and the latest developments under way at FUCHS.
What impact has COVID19 had on the lubricants sector?
While FUCHS acknowledges the negative impact brought on by the COVID19 pandemic on businesses and clients in the sector, the company has, thankfully, largely been unscathed. The demand for lubricants decreased somewhat in 2020 but is moving up, back to prepandemic levels of supply and demand. FUCHS anticipates that this upward trajectory will continue in 2021 and gradually pick up speed.
How has FUCHS fared and what measures has the company implemented to handle the situation? Although the company is concerned about COVID19 and its impact on our customers, our capital investment decisions are not based on current situations, but on longterm strategies. We have confidence in the future strength of our business in Africa. As the company's growth continues, we will consider further expansion; and continually improve quality, efficiency and plant capacity.
What percentage of your business is focused on mining and exploration and what is your strategy for this segment of business? Lubrication products commonly used in mining equipment can be divided into a number of groups. Heavyduty lubrication oils, multipurpose, circulating and hydraulic oils for engines bearing lubrication and fluid power, as well as generalpurpose greases for normal industrial bearing applications and specialised mining products. Our highperformance lubricants and greases contribute to reducing equipment maintenance costs and improving mine output. Mining equipment has evolved over the years, having to perform in tough environmental conditions and under increasing stress. Reliability poses significant challenges in this industry where a single mechanical failure can shut down an entire operation in an instant. It is therefore important that highperformance mining lubricants are formulated that provide a level of reliability that reduces the risk of equipment failure. This is exactly the focus of FUCHS Lubricants.
Consequently, as far as specialist lubricants for mining machinery are concerned, FUCHS Lubricants provides lubricants that are developed to keep equipment functionally operational while adhering to international best practice technological knowhow, standards and certifications.
FUCHS has been a partner of the global mining industry for more than 85 years. The product range covers the complete main stages of mineral value chain, exploration, infrastructure, mining and processing. Continuous product development and optimisation underline our mission to achieve technical perfection, all based on FUCHS's extensive research and development R&D programmes. As a subsidiary of Germanbased FUCHS Petrolub SE, where R&D is a key focus, our products comprise premium lubricants proven to help mining companies reduce total cost of ownership by reducing maintenance costs. Machinery lubricants can take up a significant part of the maintenance budget, and using the correct products has proven to have a positive impact on operational profitability.
FUCHS industrial oils offer a host of highperformance solutions for diverse applications. A FUCHS's grease range includes permanent and longterm lubrication solutions. R250 million Value of FUCHS's investment in a warehouse and offices
How is FUCHS Lubricants looking to grow this segment of business over the next two years?
We have experienced growth in the subSaharan African region such that we are upgrading our existing lubricants plant in South Africa. We anticipate more positive growth and, as this continues, we will consider further expansion to continually improve quality, efficiency and plant capacity. FUCHS has invested more than R250million in South Africa for the construction of a warehouse and office complex which will be completed by February 2022. Land comprising 3.2ha adjacent to our current location in lsando has been purchased for the location for the new development. There is enough space on the land for further expansion and upgrades to the manufacturing facilities.
The investment comprises two phases. Phase 1 entails the purchase of land, site development and construction of a new and much larger warehouse and office complex. Phase 2 will be a new lubricants plant. The development of the lubricants plant is still in the concept phase and will depend on the design feasibility report. The warehouse system will include a fully integrated barcoding system using SAP. The latest material handling equipment will be in use, such as narrow aisle lift trucks stacking to 17m high and a fire protection system is being designed to the latest international best practices. The new project follows FUCHS Lubricants' investment of R125million in a grease plant expansion in lsando in 2018. The investment has since made a significant contribution to our business.
Any new product developments you would like to flag?
There is still a misconception that a lubricant is a lubricant. Customer education on the evolution of lubricants is important. The sophistication in the equipment being sold today calls for everincreasing technology improvements from their lubricant provider. As original equipment manufacturers OEMs keep pushing their technologies forward, so will the demand on the lubricants industry to meet the more stringent requirements these OEMs place on the products used. A FUCHS's transmission and axle oils provide low viscosity, which delivers enhanced benefits.
Any other information you wish to impart?
The average business requiring lubricants needs an understanding of the value of a quality and approved product in order to make an informed decision. We believe that the ability to assist the market with technical queries and training is more important than ever. Customer education on the evolution of lubricants is important and the sophistication in the equipment being sold today calls for everincreasing technology advances from lubricant providers. As OEMs keep pushing their technologies forward, so will the demand on the lubricants industry to meet the increasingly stringent requirements these OEMs place on products.