Continuing innovation in lubricants

Lubricants are essential to the workings of industrial and automotive machinery and this is what Fuchs Lubrificanti SpA, part of a successful and globally renowned group, is a specialist in, as Barbara Rossi finds out from Mr Botti, the sales and marketing manager of its industrial division.

Fuchs Lubrificanti SpA is part of the German headquartered Fuchs Group. Established in 1932 and currently listed on both the Frankfurt and Zurich stock exchanges, the group is still controlled by the founding Fuchs family. The core business of the whole group is the production and commercialisation of industrial and automotive lubricants and, with its 40 production units located all over the globe, Fuchs can boast of a presence in all the major countries. The group, which employs 4000 employees worldwide, is the major independent world lubricant manufacturer, where independent means that the group is not also active in oil extraction.

The industrial lubricant sector is the division generating most of the turnover of the group worldwide and comprises lubricants used in metal working, mainly for the production of automotive components and also for the manufacturing of a wide range of industrial products (for example, pumps, taps and compressors). While operating all over the world, the automotive division is particularly strong in Germany, where the group supplies all the main automotive companies, especially in terms of lubricants for first filling (this division also supplies lubricants for road transport, vehicle repair workshops and agricultural machines).

Fuchs Lubrificanti SpA is the Italian subsidiary of the group. Set up in 1982 and wholly owned by the group, the company, based in the Turin area of north western Italy, operates from a single site housing the commercial and admin offices, internal logistics warehouses and production and R&D facilities. Fuchs Lubrificanti SpA has been growing through acquisitions and has been consolidating its position since the year 2000. Currently it has a staff of 91

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people, an annual output of 30,000 tonnes and it achieved a turnover of €57m in 2011. Its 75,000m2 site is equipped to manufacture the whole range of the group products and, thanks to its warehouse facilities, Fuchs Lubrificanti SpA is able to supply its products just-in-time. Recent investments amounting to several million Euros have been made in order to modernise the facilities and increase production capacity. The site could be easily further expanded both in terms of area and production capacity, as the company owns adjacent land.

Tailor-made products

Italian production replicates that of the German group to which it belongs, although products are developed and customised to fulfil the needs of local processes. In fact, being able to offer flexibility and tailor-made products to the needs of the Italian market is one of the strengths of Fuchs. While usually all its production is commercialised at national level, Fuchs Lubrificanti SpA manufactures also in its facilities a line of Viscosity Index Improver additives to be used in the production of engine oils (recent investments have made in this area, resulting in new homogenisation systems). The firm both supplies these products to other lubricant producers and to its sister companies in other countries.

“Currently we have a 4 per cent share of the national market, reaching a peak of 10 per cent in metalworking.” Mr Botti tells Industry Europe “The industrial lubricant field generates about 60 per cent of turnover and the automotive lubricant sector the remaining 40 per cent. We commercialise more than 1300 products a year, directly through agents or indirectly through distributors, and therefore for us continuous product development and adaptation is crucial.”

In fact, R&D plays a very important role in the life of the OHSAS-18001-certified company and 10 per cent of staff work in this area. For some projects this department operates in partnership with the group’s central R&D division, while for other products it works independently at Fuchs Lubrificanti SpA level.

Safe lubricants, safe food

Recently the Fuchs Group has acquired a specific new line of lubricants for the food sector, named Cassida. This range is a niche area, offering further added value to the Fuchs offer, which has also been launched in Italy and has since started growing, despite the fact that, at present, Italian legislation with regard to food lubricants is not 100 per cent clearly defined. Nevertheless, companies operating in the food sector are increasingly interested in adopting best practices and using these products. “In Italy we are the leaders in this field, as the Fuchs group is at worldwide level, and I consider it to be certainly an area which will offer us scope for growth and development”.

In terms of the future, Mr Botti affirms: “Ours is a mature market, where it is not possible to predict a significant growth. We think that we’ll grow because we are well consolidated, also at a financial level, and we are well structured, thanks to the work that we have carried out in the last ten years. I think that we’ll maintain the same volumes, but as the market will decrease, this will mean an increase in terms of market share. Because of this, I would define our future strategy as one of consolidation.” n