Fuchs Petrolub Group AG has acquired a long-term lease for industrial land in India, where it plans to begin building a new lubricants plant in the second quarter as part of expansion plans for its rapidly growing, wholly owned Fuchs Lubricants (India) Pvt. Ltd. subsidiary.
Fuchs has now acquired a 95-years lease for 40,000 square meters of green-field industrial land from the Maharashtra Industrial Development Corporation to set up a new lubricants plant in the Thane district near Navi Mumbai, Fuchs Executive Vice President Alf Untersteller told Lube Report. Untersteller is in charge of the region that includes Turkey, the Middle East, Africa, Central Asia, and the Indian subcontinent. He is also the marketing head for automotive products for the Eastern Hemisphere and Africa.
Investment costs are yet to be determined, and construction is scheduled to start in the second quarter, he said. The plant should start its initial production in early 2009 and be stepwise expanded to cater for the long-term growth of the business.
He said that industries driving demand for Fuchs products in India include the steel, mining, construction, cement and automotive industries. According to Untersteller, the types of lubricants made by the new blending plant in India will be corrosion preventives, metalworking fluids, greases and automotive lubricants for OEM supplies.
Untersteller explained that the new manufacturing site became necessary as Fuchs India is undergoing a major expansion thrust and has outgrown its current local production. The new plant will include extensive laboratory capacities for research, technical service, quality control, and also offer comprehensive facilities for training of customers and staff, he said.
Fuchs has operated in India since 1995, when it entered the market in a joint venture with Balmer Lawrie & Co. In view of the emerging industrial and automotive market, and further liberalization, Mannheim, Germany-based Fuchs Petrolub AG decided to buy out 100 percent of the Indian joint venture in 2000.
Fuchs Lubricants Indias current product offerings include metalworking fluids, metalforming lubricants, corrosion preventives, greases, industrial lubricants for diverse applications such as hydraulic systems, rapidly biodegradable lubricants such as railroad wheel flange lubricants, mining lubricants, and engine and gear oils.