FUCHS’s high-grade lubricants help to both save cost and protect the environment – two aspects promoting the company’s steep growth in South Africa.
FUCHS Southern Africa is a subsidiary of the global FUCHS Group, headquartered in Germany, that has developed, produced, and sold lubricants and related specialities for over 90 years. FUCHS is today a leading independent manufacturer of lubricants, covering almost every industry and application, with a portfolio comprising more than 10,000 products supplied to a wide range of sectors from automotive and industrial to mining and special applications.
Founded in 1931 as a family business in Mannheim, today the company’s 6,000 employees in over 50 countries continue to share the same goal: to keep the world moving both sustainably and efficiently.
Three Decades in South Africa
Managing Director of FUCHS Southern Africa Paul Deppe explains that FUCHS’s investment in the country started in the mid-1980s, but the FUCHS brand became known when FUCHS took 100% control of its investments in South Africa.
Today the company employs more than 300 people in South Africa and offers innovative lubricant solutions to meet the evolving demands of customers across the whole sub-Saharan region.
“Southern Africa is an important market for FUCHS,” says Mr Deppe, adding that the Southern African business is on a steep growth trajectory – over the last six years, FUCHS Southern Africa has had a compound annual growth rate of nearly 7% by volume, a pace not influenced by the global Covid-19 pandemic.
“That’s real growth and we’d like to see it continue,” he points out. “We have had a number of record years and 2022 is expected to be no exception.”
“Unlike others, we were lucky not to be affected too much by the pandemic – lubricants are an important commodity for anything that moves – trucks, rail, mining equipment, any type of vehicles. We did have our fair share of difficulties, especially with our supply chain, but the overall businesses operated through the challenging years very nicely, continuing to grow. Stability was also secured by the diversity of sectors we serve.”
Investing in Capacity
“The past decade has also been a period of major investment in both of the company’s product groups, lubricants (fluids) and greases. In 2018, FUCHS completed its first major investment in a new state-of-the-art grease plant, which is one of a kind on the African continent”, says Mr Deppe.
The company has subsequently invested in several smaller projects related to automation, followed by a large investment to expand its premises, and built a new warehouse and office complex, which was completed recently. FUCHS is now looking at another substantial investment in its lubricant plant. The project is set to start next year and expected to be completed in 2024.
“The growth is driven by increased demand not only in South Africa but in the whole sub-Saharan region”, says Mr Deppe. “We have a strong sales team focused on building relationships with our customers and seeking new partnerships all the time. It is fair to point out that FUCHS is growing globally. We may not be the cheapest, but our products are top-quality. We are a flexible, agile organisation, prepared to meet any customer demand. This is a competitive advantage.”
Mr Deppe notes that the company has a very strong service orientation specifically, but not only, in mining. “For example, we are developing platforms to monitor rotating components and bearing surfaces with a view to reducing maintenance costs and breakdowns, to increase productivity and secure maximum value from the equipment and, last but not least, achieve more sustainable operations.”
Sustainability at the Core
FUCHS products are manufactured in line with the Group’s sustainability strategy aimed at carbon neutrality, based on the ‘avoid, reduce, compensate’ principle, a strategy that has been developed over decades.
Examples of the company’s own environmental efforts include new small-pack packaging for the automotive sector with a reduced environmental impact; these have been introduced globally. The new bottles contain at least 30% post-consumer recycled (PCR) material and are 100% recyclable, while the lubricants themselves are produced in a CO2-neutral plant. FUCHS is believed to be one of the first companies in its industry to do this.
“We also promote environmentally responsible management of used lubricating oils and related waste in South Africa and are an active participant in the ROSE Foundation (Recycling Oil Saves the Environment), a national non-profit organization established to promote and encourage the environmentally responsible management of used oils and related waste in South Africa,” says Mr Deppe.
“There are many other ‘green’ initiatives that we actively support and are involved in. From a FUCHS group perspective, we have reached gate-to-gate carbon neutrality in 2020 already, and our target is to reach cradle-to-gate neutrality by 2025.”
The First Choice
He reflects that one of the challenges the company is currently facing is building capacity to meet demand, which is now almost outstripping supply. “We are set to continue to invest in capacity but also, very importantly, in our people.”
FUCHS recognises the social and commercial imperative to achieve economic transformation in South Africa. Over several years FUCHS has implemented a number of initiatives relating to employment equity, skills development, preferential procurement, and corporate social investment.
“We actively subscribe to the UN sustainability development goals, and in particular focus on quality education, health, and wellbeing. Thus, we are helping to move not only the company but the whole of society forward.”
Mr Deppe, who has served the company in his current position for 8 years, insists that the progress and success of the company under his management is the outcome of a team effort. “I, as Managing Director, am only part of it. It takes more than one person to make this success happen. I am privileged to have a strong team and together we will drive the business towards FUCHS’s vision: to be the first choice for our customers, business partners, investors, and future employees,” he concludes.
