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Company poised to capitalise on burgeoning grease market

29th June 2018

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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Lubricants specialist FUCHS Lubricants South Africa (FUCHS SA) expects that the demand for high-quality greases will grow “significantly” in all spheres of the market, and is, therefore, equipped to meet and exceed the mining market’s requirements for this through its newly commissioned grease plant, FUCHS SA national sales executive Andrew Cowling tells Mining Weekly.

FUCHS Lubricants SA, in conjunction with its parent company FUCHS Petrolub FE, launched its R125-million grease manufacturing plant in April at its factory in Isando, Gauteng. Cowling indicates that this plant will increase FUCHS SA’s grease production, and manufacturing of 30 different grease products. The semi-automated plant will enable FUCHS to increase its grease output to exceed market requirements.

The plant also enables FUCHS to manufacture speciality greases for the local market and for export into the rest of Africa, as 25% of FUCHS SA’s business comprises African exports.

The company supplies a range of lubricant products to the mining industry for specialised mining applications. The local mining industry is a significant user of speciality greases and this is steadily increasing locally and globally, avers Cowling.

He adds that key to the market is the need for products that enhance energy efficiency and service intervals. Fire-resistant lubricants and environment-friendly products are also coming to the fore.

Cowling attributes this growing demand to mining and mineral exploration currently being “favourably robust”, with the majority of the world’s major companies entrenching their market presence or expanding their operations.

This provides opportunities for FUCHS SA, as the company conducts business locally with several of these mining companies, and can grow its business to meet increased demand. Cowling notes that the company boasts an “extensive and well-established network of distributors” in Namibia, Botswana, Swaziland, Mozambique, Zimbabwe, Zambia, Malawi, Tanzania, the Democratic Republic of Congo and a number of mining clients in West Africa.

These distributors stock a full range of mining lubricants and staff at these locations have extensive experience of mining industry applications and requirements. Distributors also receive full support from a team of FUCHS SA product application specialists who travel to site when required, Cowling says.

Further, the company can capitalise on business opportunities presented by mining companies that are supplied by FUCHS globally, in countries such as Australia, Brazil, the US and China.

“FUCHS Lubricants SA has a comprehensive range of products, which presents the company as the ideal lubricants one-stop partner,” says Cowling.

He claims that the company’s product range is “probably the largest in South Africa”. More than 90% of the oils and greases FUCHS produces are manufactured locally to international quality standards.

FUCHS SA also offers a varied industrial range, including eight different hydraulic fluids for special applications, and a comprehensive range of automotive products for heavy-duty diesel trucks and earthmoving equipment, Cowling highlights.

He says that, initially, the company’s strength regarding supplying mines was its speciality products, specifically greases. However, there has been a consistent increase in demand from existing clients for commercial products, especially those for whom original-equipment manufacturer approval is a requirement.

Cowling mentions that FUCHS SA also offers an in-house lubrication equipment design, manufacturing and installation division.

However, as with most companies whose raw materials are almost fully imported, the company does have a challenge in coping with the recent currency fluctuations.

Cowling notes other challenges as the US’s recent announcement of higher tariffs on imported goods which could impact on exports into the US, as well as political uncertainty in certain areas of the company’s operations and the overall volatility that is characteristic of the mining industry.

Edited by Mia Breytenbach
Creamer Media Deputy Editor: Features

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