December 10, 2019
Volume 3 Issue 4
Fuchs Buys Shares in African Distributors
The Fuchs Group acquired half the shares of three separate African lubricant distributors to strengthen its presence in the continent’s Sub-Saharan region, the company announced last week.
The Mannheim, Germany-based independent blender said the three distributors – located in Mozambique, Zambia and Zimbabwe – generated sales of approximately 21 million euros (U.S. $23.2 million) in 2018. Fuchs did not disclose the cost of the acquisitions – now 50-50 joint ventures – nor the volume of lubricants it distributes in Africa.
"Customers in these countries – who require lubricants and services in fields like mining, commercial vehicle fleets, general industry, agriculture, food and beverage, consumer products and other specialty applications – will benefit locally from an even stronger lubricants focus, supported by international resources," said Alf Untersteller, executive vice president of Fuchs Petrolub SE, in a press release issued Dec. 5.
“This will supply markets in Africa and is also part of our current global growth initiative investing in existing and new plants focused on capacity increase in line with advanced technology," said Stefan Fuchs, chairman of the executive board of Fuchs Petrolub SE. “Further plant expansions are already being planned.”
Fuchs already operates an African entity, Fuchs Southern Africa, and a joint venture with Petrolube in Tanzania. In 2014 it acquired three distributors in South Africa, and built a grease manufacturing plant in Johannesburg in 2018.
Lubricants distributed by Fuchs in Africa are manufactured at its South African operation.
The company said it expects the acquisitions to close in early 2020.