ground-breaking ceremony in Kaluga - FUCHS Oil Middle East Ltd.
ground-breaking ceremony in Kaluga - FUCHS Oil Middle East Ltd.
ground-breaking ceremony in Kaluga - FUCHS Oil Middle East Ltd.
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The <strong>FUCHS</strong> Group. News, Views, Posts & People www.fuchs-oil.com 3/ 2011<br />
Investment <strong>in</strong> the grow<strong>in</strong>g Russian market –<br />
<strong>ground</strong>-<strong>break<strong>in</strong>g</strong> <strong>ceremony</strong><br />
<strong>in</strong> <strong>Kaluga</strong><br />
New management structure:<br />
The Group’s Executive Committee<br />
is be<strong>in</strong>g expanded<br />
to 12 members and renamed<br />
the Group Management<br />
Committee. More on page 4.<br />
New impetus:<br />
To f<strong>in</strong>d out how the idea<br />
management team is seek<strong>in</strong>g<br />
to place more emphasis on<br />
suggestions for improvement,<br />
turn to page 8.<br />
New challenges:<br />
Read from page 10 about<br />
the problems <strong>FUCHS</strong> buyers<br />
have to solve.<br />
Partner for
2 Content<br />
3<br />
4<br />
7<br />
8<br />
10<br />
13<br />
14<br />
15<br />
20<br />
23<br />
23<br />
Panorama<br />
Partak<strong>in</strong>g <strong>in</strong> life<br />
<strong>FUCHS</strong> PETROLUB enlarges its operat<strong>in</strong>g<br />
management committee<br />
Record team on the start<strong>in</strong>g l<strong>in</strong>e<br />
Cover story<br />
“Wanted: Creative M<strong>in</strong>d”<br />
New impetus for idea management<br />
Focus<br />
“Purchas<strong>in</strong>g department faces<br />
great challenges“<br />
Latest company news<br />
Break<strong>in</strong>g <strong>ground</strong> <strong>in</strong> <strong>Kaluga</strong><br />
WISURA celebrates 100year anniversary<br />
First steps <strong>in</strong>to professional life<br />
Trade and promotion activities<br />
Bound to tradition<br />
<strong>FUCHS</strong> Communication Service<br />
Names and news<br />
Simon Huang Yi Chien has passed away<br />
With MOTORSPORT NEWS supplement<br />
Cover photo:<br />
Stefan Fuchs and Anatoly Artamonow,<br />
governor of <strong>Kaluga</strong> Oblast, at the<br />
<strong>ground</strong><strong>break<strong>in</strong>g</strong> <strong>ceremony</strong> for the<br />
new <strong>FUCHS</strong> OIL RUSSIA plant.<br />
Copy deadl<strong>in</strong>e:<br />
Please send your contributions for the<br />
1/2012 edition of “<strong>FUCHS</strong> Info” to us by<br />
15 January 2012 at the latest. This particularly<br />
applies to reports not <strong>in</strong> German.<br />
Articles received later than this cannot<br />
be published until the next edition.<br />
Design:<br />
Wurth Werbeagentur, Mannheim<br />
Edit<strong>in</strong>g:<br />
Ulla Cramer, Hubertus Stärk, T<strong>in</strong>a Vogel<br />
<strong>FUCHS</strong> PETROLUB AG<br />
Public Relations<br />
Friesenheimer Straße 17<br />
68169 Mannheim<br />
Germany<br />
T<strong>in</strong>a.Vogel@fuchsoil.de<br />
Editorial<br />
Dear Employees,<br />
Exactly one year ago I spoke to you<br />
about mak<strong>in</strong>g more concrete plans for<br />
the future. However, we are once aga<strong>in</strong><br />
faced with external <strong>in</strong>fluences which<br />
make it difficult to look ahead. Noone<br />
knows for certa<strong>in</strong> whether the European<br />
debt crisis and the high level of debt <strong>in</strong><br />
the USA and Japan will simply weaken<br />
economic drivers or cause them to seriously<br />
falter. It is therefore all the more<br />
important for us to have a solid and robust<br />
basis <strong>in</strong> our crisistested bus<strong>in</strong>ess<br />
model, our f<strong>in</strong>ancial setup and <strong>in</strong>dependent<br />
outlook.<br />
We have confirmed our forecast. We aim<br />
to achieve record profits aga<strong>in</strong> and are<br />
pursu<strong>in</strong>g our growth plan with determ<strong>in</strong>ation.<br />
This will enable us to secure<br />
our cont<strong>in</strong>u<strong>in</strong>g growth for the com<strong>in</strong>g<br />
years.<br />
With the newly formed Group Management<br />
Committee (GMC) and its expansion<br />
by two important regions and two<br />
key divisions, members of the <strong>FUCHS</strong><br />
PETROLUB Group operational management<br />
committee are now able to work<br />
much more efficiently. My colleagues on<br />
the board and I are pleased that by<br />
add<strong>in</strong>g Stefan Knapp, CEO of <strong>FUCHS</strong><br />
EUROPE SCHMIERSTOFFE and Steve<br />
Puffpaff, CEO of <strong>FUCHS</strong> CORPORATION,<br />
two big companies and regions which<br />
are important to the group are now<br />
represented <strong>in</strong> the GMC. Two more divisions<br />
of major significance to the entire<br />
group are represented with Bernhard<br />
Biehl, CEO of the <strong>FUCHS</strong> LUBRITECH<br />
Group and Carsten Meyer, head of the<br />
global OEM division. This will consider<br />
ably simplify communication between<br />
the regions and divisions.<br />
We are mak<strong>in</strong>g good progress with our<br />
growth program. We have already succeeded<br />
<strong>in</strong> fill<strong>in</strong>g many key positions.<br />
Construction work at the research centre<br />
<strong>in</strong> Mannheim is almost f<strong>in</strong>ished. CAS<br />
SIDA products are now be<strong>in</strong>g manufactured<br />
<strong>in</strong> Kaiserslautern. Build<strong>in</strong>g has<br />
begun <strong>in</strong> Russia and many other projects<br />
are tak<strong>in</strong>g shape <strong>in</strong> countries such as the<br />
USA and Ch<strong>in</strong>a.<br />
We are confident that we will cont<strong>in</strong>ue<br />
to grow <strong>in</strong> future both <strong>in</strong> rapidlydevelop<strong>in</strong>g<br />
markets such as Russia, India and<br />
Ch<strong>in</strong>a and established markets <strong>in</strong> which<br />
<strong>in</strong>creas<strong>in</strong>g numbers of customers rely on<br />
the technological lead and firstrate<br />
service offered by <strong>FUCHS</strong>.<br />
These positive developments <strong>in</strong> the<br />
<strong>FUCHS</strong> PETROLUB Group are down to<br />
your hard work, your loyalty to the company<br />
and our constantly improv<strong>in</strong>g communication<br />
throughout the world. There<br />
are no other comparable lubricant suppliers<br />
offer<strong>in</strong>g all products and application<br />
areas seamlessly worldwide. We can<br />
rely on this. I would like to thank you<br />
all personally and on behalf of my colleagues<br />
on the board and I wish you a<br />
happy and successful end to 2011.<br />
S<strong>in</strong>cerely<br />
Stefan Fuchs
Panorama<br />
Partak<strong>in</strong>g <strong>in</strong> life<br />
<strong>FUCHS</strong> awards sponsor social projects <strong>in</strong> Mannheim with 5 30,000<br />
The representatives of the awarded <strong>in</strong>itiatives and Mayor Dr. Peter Kurz (2nd from left), Mayor for Commerce,<br />
Arts and Social Affairs and Culture Michael Grötsch (6th from the left) and Stefan Fuchs (4th from<br />
the left) celebrate the f<strong>in</strong>ancial support of their projects.<br />
Last year the children’s circus Paletti received<br />
3 5,500 for establish<strong>in</strong>g an <strong>in</strong>tegrated<br />
circus group. On the occasion of this<br />
year’s <strong>FUCHS</strong> award <strong>ceremony</strong> on October<br />
13, the “Monteless<strong>in</strong>gs”, highflyers of the<br />
Less<strong>in</strong>g HighSchool and the MariaMontessori<br />
School for children with learn<strong>in</strong>g<br />
difficulties showed what they had learned.<br />
They balanced on big balls, juggled skillfully,<br />
whirled colored ribbons through the<br />
air and built pyramids for which they received<br />
a big round of applause.<br />
Little acrobats: The “Monteless<strong>in</strong>gs” of the children’s<br />
circus Paletti enterta<strong>in</strong>ed the guests with<br />
their tricks.<br />
<strong>FUCHS</strong> has made this award “Help for<br />
people” which is under the patronage of<br />
Dr. Peter Kurz, Mayor of Mannheim, for<br />
the 12 th year. A total of 28 award contestants<br />
were another new record. “We<br />
should always keep <strong>in</strong> m<strong>in</strong>d that we might<br />
all be <strong>in</strong> a situation where we need help<br />
from other people or <strong>in</strong>stitutions”, says<br />
Stefan Fuchs. “The award will symbolize<br />
that and draw the attention to people<br />
will<strong>in</strong>g to selflessly help other people over<br />
many years”. Dr. Peter Kurz honored the<br />
close association between <strong>FUCHS</strong> PETRO<br />
LUB and the city of Mannheim and emphasized<br />
the high significance of the<br />
<strong>FUCHS</strong> award aga<strong>in</strong>st the backdrop of<br />
social responsibility.<br />
This year the projects were targeted to<br />
provid<strong>in</strong>g socially and physically burdened<br />
people with opportunities to partake <strong>in</strong><br />
life and cooperation between different<br />
generations. The largest <strong>in</strong>dividual sum of<br />
3 7,500 was awarded to the dementia<br />
counsel<strong>in</strong>g station of the German Red<br />
Cross. Also the family members of forgetful<br />
and disoriented mothers, fathers or<br />
partners need help and the opportunity<br />
to escape domestic isolation. A conversation<br />
forum and afternoon meet<strong>in</strong>gs <strong>in</strong> the<br />
Café Zeitlos will provide them with the<br />
opportunity to rejuvenate, make contact<br />
with others affected, and seek professional<br />
help.<br />
With first class <strong>in</strong>terpretations of vibrant<br />
compositions of Leslie Searle and Leroy<br />
Anderson the Kurpfälzische Kammerorchester<br />
with Izabela Wiza, Wolfgang<br />
Grosch, Marian Gorski and Zoltán Onczay<br />
provided the perfect musical ambiance.<br />
The awards were<br />
made to :<br />
• “Help for people with dementia” –<br />
establish<strong>in</strong>g a dementia counsel<strong>in</strong>g<br />
station, a conversation forum for<br />
family care providers and afternoon<br />
meet<strong>in</strong>gs at the Café Zeitlos, Ger<br />
man Red Cross district association<br />
Mannheim (3 7,500).<br />
• “Mannheim start<strong>in</strong>g aid” for the re-<br />
<strong>in</strong>tegration of physically impaired<br />
people <strong>in</strong>to work<strong>in</strong>g life with trial<br />
jobs, Central Institute for Mental<br />
Health (3 6,000)<br />
• “Before” – concept for addiction<br />
prevention at the orphanage St.<br />
Joseph, Caritas Association Mann<br />
heim (3 5,000)<br />
• T-shirts, trophies and certificates for<br />
the violence prevention football<br />
tournament “Sport <strong>in</strong>stead of vio<br />
lence 2012“, Neighborhood Man<br />
agement Herzogenried (3 3,500)<br />
• “Program for severely disabled, un-<br />
derprivileged people“, such as a<br />
Nordic walk<strong>in</strong>g scheme, VdK Mann<br />
heimInnenstadt (3 1,500)<br />
• A new kitchen for the project “Sen-<br />
ior citizens cook and enjoy”, Caritas<br />
Association MannheimSchönau<br />
(3 1,500)<br />
• Regional task force for self-help<br />
groups <strong>in</strong> Mannheim (special award:<br />
3 5,000)<br />
• “Perspectives – homework tutor<strong>in</strong>g<br />
<strong>in</strong> the multigeneration house<br />
Mannheim (special award of Willis<br />
GmbH & Co. KG: 3 5,000)<br />
3
4 Panorama<br />
<strong>FUCHS</strong> PETROLUB enlarges its operat<strong>in</strong>g<br />
management committee<br />
<strong>FUCHS</strong> PETROLUB enlarges its operat<strong>in</strong>g management committee by appo<strong>in</strong>t<strong>in</strong>g<br />
four new members. This allows us to strengthen our worldwide growth <strong>in</strong>itiative<br />
and to enhance the focus on further develop<strong>in</strong>g our bus<strong>in</strong>ess. The new members<br />
represent the important regions of Germany and North America as well as the<br />
Global Divisions <strong>FUCHS</strong> LUBRITECH and OEM.<br />
Today’s Group Executive Committee will<br />
be renamed as the Group Management<br />
Committee (GMC) and enlarged by four to<br />
a total of twelve members. The Group<br />
Management Committee will comprise<br />
the five members of the Executive Board<br />
Stefan Fuchs, Dr. Alexander Selent, Dr.<br />
Lutz L<strong>in</strong>demann, Dr. Georg L<strong>in</strong>gg and Dr.<br />
Ralph Rhe<strong>in</strong>boldt; the three members of<br />
the current Executive Committee: Klaus<br />
Hartig (region: <strong>East</strong> Asia), Re<strong>in</strong>er Schmidt<br />
(Treasury & Controll<strong>in</strong>g) and Alf Untersteller<br />
(region: Africa, <strong>Middle</strong> <strong>East</strong>, India<br />
and Turkey); and the four new members<br />
Stefan Knapp (region: Germany), Steve<br />
Puffpaff (region: North America), Bernhard<br />
Biehl (<strong>FUCHS</strong> LUBRITECH Group) and<br />
Carsten Meyer (Global OEM Division).<br />
The GMC will def<strong>in</strong>e the strategic direction<br />
and the further profitable global<br />
growth <strong>in</strong>itiatives of <strong>FUCHS</strong> PETROLUB<br />
and will follow up on their execution.<br />
The ma<strong>in</strong> focus will be on top l<strong>in</strong>e growth<br />
through exist<strong>in</strong>g and new customers, the<br />
exploitation of new bus<strong>in</strong>ess segments,<br />
global and regional human resources development,<br />
and improved coord<strong>in</strong>ation<br />
between the regions and the global divisions.<br />
With its global <strong>in</strong>frastructure, an outstand<strong>in</strong>g<br />
and highlymotivated team and<br />
technology leadership <strong>in</strong> numerous important<br />
application areas, <strong>FUCHS</strong> PETRO<br />
LUB has the ideal platform from which to<br />
cont<strong>in</strong>ue writ<strong>in</strong>g its successful 80year<br />
history of growth. In order to drive global<br />
bus<strong>in</strong>ess expansion forward <strong>in</strong> a wide<br />
variety of application areas (all of which<br />
rely on specialist product management,<br />
sales and development staff), an operat<strong>in</strong>g<br />
management committee was needed<br />
Stefan Knapp Steve Puffpaff<br />
to represent the large and fastgrow<strong>in</strong>g<br />
regions, global divisions and support<br />
teams.<br />
Klaus Hartig (who has lived <strong>in</strong> Ch<strong>in</strong>a for<br />
many years and is responsible for the<br />
fastgrow<strong>in</strong>g <strong>East</strong> Asia region) and Alf<br />
Untersteller (<strong>in</strong> charge of India and Turkey<br />
as well as South Africa and the Africa<br />
and <strong>Middle</strong> <strong>East</strong> region) have successfully<br />
represented the large AsiaPacific and Africa<br />
region on this committee for many<br />
years. The important treasury and controll<strong>in</strong>g<br />
team has been managed efficiently<br />
and reliably by Re<strong>in</strong>er Schmidt for<br />
many years.<br />
With<strong>in</strong> the framework of this management<br />
committee, the four new members<br />
will support the growth strategy, repre<br />
sent regions and divisions of importance<br />
to <strong>FUCHS</strong> PETROLUB, and def<strong>in</strong>e key operat<strong>in</strong>g<br />
areas together with other members<br />
of the team.<br />
Stefan Knapp, 46 years old, has been with<br />
<strong>FUCHS</strong> EUROPE SCHMIERSTOFFE GMBH<br />
(FES) for six years, and is responsible for<br />
the bus<strong>in</strong>ess of <strong>FUCHS</strong> PETROLUB <strong>in</strong> Germany<br />
(except for the LUBRITECH Group).<br />
As the CEO of FES, he is accountable for<br />
the major and – <strong>in</strong> view of technology –<br />
most important company of the Group.<br />
FES is cont<strong>in</strong>u<strong>in</strong>g to grow <strong>in</strong> importance<br />
both on a national and <strong>in</strong>ternational<br />
level supported by the construction of<br />
the new sales and research centre.<br />
Steve Puffpaff, 43 years old, has been<br />
with the <strong>FUCHS</strong> Group for six years and is
CEO of the important North American<br />
Company <strong>FUCHS</strong> CORPORATION, which<br />
is a success story with<strong>in</strong> the <strong>FUCHS</strong><br />
Group. It cont<strong>in</strong>ues its positive development<br />
by grow<strong>in</strong>g its exist<strong>in</strong>g bus<strong>in</strong>ess<br />
and exploit<strong>in</strong>g new opportunities. In addition<br />
to Germany, another important<br />
technology centre for the Group has<br />
Bernhard Biehl Carsten Meyer<br />
been established <strong>in</strong> the USA <strong>in</strong> recent<br />
years due to improvements <strong>in</strong> product<br />
management and R&D. The company<br />
has seen impressive growth <strong>in</strong> North<br />
America <strong>in</strong> the areas of metalwork<strong>in</strong>g,<br />
m<strong>in</strong><strong>in</strong>g, OEM and specialties.<br />
Bernhard Biehl, 54 years old, has been<br />
with the <strong>FUCHS</strong> Group for 25 years and<br />
is responsible for the successful global<br />
<strong>FUCHS</strong> LUBRITECH bus<strong>in</strong>ess which is <strong>in</strong>volved<br />
<strong>in</strong> important growth areas such<br />
as the food, forg<strong>in</strong>g and cement <strong>in</strong>dustries.<br />
Their market leadership <strong>in</strong> many<br />
specialty segments should be systematically<br />
developed via the exist<strong>in</strong>g <strong>in</strong>frastructure<br />
of the <strong>FUCHS</strong> Group. From its<br />
base <strong>in</strong> Kaiserslautern, a team with a<br />
strong <strong>in</strong>ternational focus supports the<br />
LUBRITECH divisions <strong>in</strong> countries such as<br />
the USA, Brazil, Ch<strong>in</strong>a, India and Australia.<br />
Carsten Meyer, 41 years old, has been<br />
with the <strong>FUCHS</strong> Group for 20 years, and<br />
is responsible for the fast grow<strong>in</strong>g and<br />
important global OEM bus<strong>in</strong>ess. This key<br />
operat<strong>in</strong>g area of the Group, which is<br />
responsible for the development of firstfill<br />
lubricants for vehicles, trucks and<br />
equipment used <strong>in</strong> the agricultural and<br />
construction sectors, is set to expand <strong>in</strong><br />
all three global regions through the<br />
<strong>FUCHS</strong> PETROLUB network. Critical to<br />
the cont<strong>in</strong>ued expansion of exist<strong>in</strong>g<br />
bus<strong>in</strong>ess with renowned global OEMs<br />
are the formulation expertise, which is<br />
unrivalled <strong>in</strong> the <strong>in</strong>dustry, and a global<br />
network, which provides excellent communication.<br />
The enlarged GMC, <strong>in</strong> which three members<br />
represent the fastgrow<strong>in</strong>g region<br />
AsiaPacific and which comprises all other<br />
important world regions as well as the<br />
two major divisions LUBRITECH and OEM,<br />
will allow the Group to further focus on<br />
the different areas of opportunity.<br />
The Group<br />
Management Committee<br />
• Stefan R. Fuchs<br />
Age 43, 15 years at <strong>FUCHS</strong><br />
Chairman of the Executive Board<br />
– Corporate Development<br />
– Senior Management<br />
– Region North America<br />
– <strong>FUCHS</strong> LUBRITECH Group<br />
– Coord<strong>in</strong>ation and Public Relations<br />
• Dr. Alexander Selent<br />
Age 59, 12 years at <strong>FUCHS</strong><br />
Deputy Chairman of the Executive Board<br />
– F<strong>in</strong>ance, Controll<strong>in</strong>g<br />
– Legal, Taxes, Human Resources<br />
– Investor Relations, Compliance<br />
– IT, Internal Audit<strong>in</strong>g<br />
• Dr. Lutz L<strong>in</strong>demann<br />
Age 51, 13 years at <strong>FUCHS</strong><br />
Member of the Executive Board<br />
– Technology<br />
– Supply Cha<strong>in</strong> Management<br />
– Region South America<br />
– International OEM Bus<strong>in</strong>ess<br />
• Dr. Georg L<strong>in</strong>gg<br />
Age 47, 16 years at <strong>FUCHS</strong><br />
Member of the Executive Board<br />
– Region Asia-Pacific and Africa<br />
– International M<strong>in</strong><strong>in</strong>g Bus<strong>in</strong>ess<br />
• Dr. Ralph Rhe<strong>in</strong>boldt<br />
Age 44, 13 years at <strong>FUCHS</strong><br />
Member of the Executive Board<br />
– Region Europe<br />
• Bernhard Biehl<br />
Age 54, 25 years at <strong>FUCHS</strong><br />
– <strong>FUCHS</strong> LUBRITECH Group<br />
• Klaus Hartig<br />
Age 47, 15 years at <strong>FUCHS</strong><br />
– Region <strong>East</strong> Asia<br />
• Stefan Knapp<br />
Age 46, 6 years at <strong>FUCHS</strong><br />
– Region Germany<br />
• Carsten Meyer<br />
Age 41, 20 years at <strong>FUCHS</strong><br />
– Globale OEM Bus<strong>in</strong>ess<br />
• Steve Puffpaff<br />
Age 43, 6 years at <strong>FUCHS</strong><br />
– Region North America<br />
• Re<strong>in</strong>er Schmidt<br />
Age 53, 15 years at <strong>FUCHS</strong><br />
– F<strong>in</strong>ance and Controll<strong>in</strong>g<br />
• Alf Untersteller<br />
Age 53, 17 years at <strong>FUCHS</strong><br />
– Region Turkey, <strong>Middle</strong> <strong>East</strong>,<br />
Central Asia, Indian Subcont<strong>in</strong>ent,<br />
Africa<br />
5
6 Panorama<br />
Many f<strong>in</strong>ancial analysts accepted the <strong>in</strong>vitation to the 12th <strong>FUCHS</strong> PETROLUB f<strong>in</strong>ancial market conference.<br />
This image shows the conference attendees <strong>in</strong> front of the Gerolste<strong>in</strong>er Brunnen build<strong>in</strong>g <strong>in</strong> Gerol ste<strong>in</strong><br />
<strong>in</strong> the Eifel region.<br />
Successful analyst meet<strong>in</strong>g<br />
Visit to beverage manufacturer Gerolste<strong>in</strong>er Brunnen<br />
Almost all the f<strong>in</strong>ancial analysts currently<br />
valu<strong>in</strong>g <strong>FUCHS</strong> PETROLUB accepted the <strong>in</strong>vitation<br />
to attend the 12 th f<strong>in</strong>ancial market<br />
conference <strong>in</strong> Hillesheim and Gerolste<strong>in</strong><br />
<strong>in</strong> September. Participants attended<br />
the conference part of the meet<strong>in</strong>g <strong>in</strong> the<br />
idyllic sett<strong>in</strong>g of Hillesheim <strong>in</strong> the Eifel region<br />
before pay<strong>in</strong>g a visit to beverage<br />
manufacturer Gerolste<strong>in</strong>er Brunnen <strong>in</strong><br />
Gerolste<strong>in</strong> <strong>in</strong> the afternoon. <strong>FUCHS</strong> lubricants<br />
tailored for the food <strong>in</strong>dustry were<br />
the focus of <strong>in</strong>terest here. S<strong>in</strong>ce the acquisition<br />
of CASSIDA last year, this area has<br />
ga<strong>in</strong>ed even greater importance. Twenty<br />
five <strong>FUCHS</strong> food manufactur<strong>in</strong>g products<br />
are used at Gerolste<strong>in</strong>er Brunnen alone. A<br />
welcome speech by Gerolste<strong>in</strong>er Brunnen<br />
plant manager Michael Becker was followed<br />
by an expertlydelivered tour of the<br />
company. Dur<strong>in</strong>g the tour, participants<br />
were able to ga<strong>in</strong> a good overview of the<br />
impressive fill<strong>in</strong>g technology and the demands<br />
placed on the lubricants used.<br />
The IR department of <strong>FUCHS</strong> PETROLUB<br />
was given a vital help<strong>in</strong>g hand by the<br />
Bremer & Leguil team. CEO Frank Schnipper,<br />
Manfred Plötz and Lothar Drescher<br />
gave an excellent presentation of this<br />
highly specialized application area for lubricants.<br />
Stefan Fuchs, Dr. Alexander Selent,<br />
Re<strong>in</strong>er Schmidt and Hubertus Stärk<br />
represented <strong>FUCHS</strong> PETROLUB at the traditional<br />
event.<br />
Students enthused by <strong>in</strong>struments<br />
The Pop Academy Baden-Württemberg<br />
<strong>in</strong>vested the special award of 5 5,000<br />
<strong>in</strong> a new complete set of <strong>in</strong>struments<br />
donated to the Academy with<strong>in</strong> the<br />
framework of the <strong>FUCHS</strong> award by<br />
Willis GmbH & Co. KG, <strong>in</strong>surance broker<br />
for <strong>FUCHS</strong>. The new <strong>in</strong>struments<br />
will be used for pop music coach<strong>in</strong>g <strong>in</strong><br />
schools where popular music is used to<br />
enhance l<strong>in</strong>guistic competence and for<br />
early musical education programs <strong>in</strong><br />
k<strong>in</strong>dergartens. The young pop musicians<br />
are pleased.<br />
“<strong>FUCHS</strong> shares are<br />
a stroke of good<br />
fortune”<br />
“Fuchs Petrolub, a stroke of good fortune”<br />
was the headl<strong>in</strong>e of an article <strong>in</strong><br />
the regional newspaper “Mannheimer<br />
Morgen” this July. In a rank<strong>in</strong>g of German<br />
company shares, <strong>FUCHS</strong> took first<br />
place with an average annual return on<br />
<strong>in</strong>vestment of 40 per cent s<strong>in</strong>ce the end<br />
of 2000, way ahead of BASF and Bilf<strong>in</strong>ger<br />
Berger. <strong>FUCHS</strong> also climbed the list<br />
of the 500 biggest German companies<br />
compiled every year by the daily newspaper<br />
“Die Welt”. The company is <strong>in</strong><br />
408 th place up from 457 th last year. In a<br />
rank<strong>in</strong>g of German family bus<strong>in</strong>esses put<br />
together by “Frankfurter Allgeme<strong>in</strong>e<br />
Zeitung”, <strong>FUCHS</strong> broke the top 120 for<br />
the first time tak<strong>in</strong>g 117 th place. In terms<br />
of market capitalization, <strong>FUCHS</strong> climbed<br />
13 places and was ranked 64 th <strong>in</strong> another<br />
overview compiled by “Frankfurter<br />
Allgeme<strong>in</strong>e Zeitung”, with a value of<br />
3 2.4 billion.<br />
The <strong>in</strong>creas<strong>in</strong>g significance of <strong>FUCHS</strong><br />
shares was also documented by <strong>in</strong>clusion<br />
<strong>in</strong> the STOXX Europe 600 on September<br />
19, which comprises companies from 18<br />
European countries. <strong>FUCHS</strong> preference<br />
shares took the place of Tognum, a supplier<br />
of drive and energy systems.<br />
Share split<br />
of 3 for 1<br />
A decision was taken at the Annual General<br />
Meet<strong>in</strong>g <strong>in</strong> May to implement a share<br />
split of 3 for 1 to further <strong>in</strong>crease the appeal<br />
of <strong>FUCHS</strong> PETROLUB shares, especially<br />
to private <strong>in</strong>vestors.<br />
The company’s list<strong>in</strong>g was amended on 30<br />
June. Instead of noparvalue shares with<br />
a nom<strong>in</strong>al value of three euros, all ord<strong>in</strong>ary<br />
and preferential shareholders will<br />
now receive three noparvalue shares<br />
each with a calculated value of one euro<br />
<strong>in</strong> the company’s capital stock. The unchanged<br />
share capital of 3 70,980,000 will<br />
now be divided <strong>in</strong>to 35,490,000 ord<strong>in</strong>ary<br />
noparvalue shares and 35,490,000 preferential<br />
noparvalue shares with a nom<strong>in</strong>al<br />
value of one euro per ord<strong>in</strong>ary or preferential<br />
share.
Record team on the start<strong>in</strong>g l<strong>in</strong>e<br />
More than 80 employees participated <strong>in</strong> this year’s BASF Company Cup<br />
Colleagues from Kaiserslautern and Bremen strengthened the team at the BASF Company Cup <strong>in</strong> Hockenheim.<br />
The weather god gave his bless<strong>in</strong>g at the<br />
9 th BASF Company so that the 16,000<br />
participants from 750 companies could<br />
enjoy the great atmosphere and a dry<br />
race track at the Meet<strong>in</strong>g Po<strong>in</strong>t Arena.<br />
S<strong>in</strong>ce the very first event, <strong>FUCHS</strong> teams<br />
have always competed <strong>in</strong> Hockenheim,<br />
however, this year team capta<strong>in</strong> Christ<strong>in</strong>e<br />
Beck entered 80 employees <strong>in</strong> the<br />
race – a new record. The staff from the<br />
Mann heim site was strengthened by<br />
colleagues of <strong>FUCHS</strong> LUBRITECH from<br />
Kaiserslautern and WISURA MINERAL<br />
Australian Ambassador’s Visit<br />
As part of his visit to major companies<br />
<strong>in</strong> the Rh<strong>in</strong>e-Neckar Metropolitan Re -<br />
gion, Australian Ambassador Peter Tesch<br />
accepted an <strong>in</strong>vitation from the <strong>FUCHS</strong><br />
Executive Board. The purpose of the<br />
meet<strong>in</strong>g was for both sides to exchange<br />
<strong>in</strong>formation. The two parties identified<br />
start<strong>in</strong>g po<strong>in</strong>ts for promot<strong>in</strong>g Australia’s<br />
economic development and <strong>FUCHS</strong>’ own<br />
expansion <strong>in</strong> Australia. The ambassador,<br />
a fluent German speaker (third<br />
from the left) was accompanied by the<br />
member of the Bundestag and Mannheim<br />
city councilor Prof. Dr. Egon Jüttner<br />
(second from the right) and Stefan<br />
August<strong>in</strong> from the Australian government<br />
trade commission <strong>in</strong> Frankfurt<br />
(left). The Australian guests were welcomed<br />
by Dr. Georg L<strong>in</strong>gg (second<br />
from the left) who is responsible for<br />
the Asia-Pacific region on the Executive<br />
Board and Hubertus Stärk, Vice<br />
President Public Relations.<br />
ÖLWERK GOLD GRABE & SCHEFT from<br />
Bremen. The whole Executive Board,<br />
members of the Group’s Executive Committee<br />
and the CEOs of subsidiaries participated,<br />
too.<br />
This year aga<strong>in</strong>, <strong>FUCHS</strong> sponsored the<br />
BASF Company Cup, and, among other<br />
companies, represented the Group <strong>in</strong><br />
the exhibition area: The <strong>FUCHS</strong> logo<br />
could be recognized on the rails, flyers<br />
and posters as well as on the f<strong>in</strong>isher Tshirts,<br />
which every participant received<br />
as a gift at the conclusion of the event.<br />
In support of „k<strong>in</strong>derwelten e.V.“, an <strong>in</strong>stitution<br />
support<strong>in</strong>g children, the apprentices<br />
Laura Löschmann, Kathr<strong>in</strong><br />
Montag, Viktor Münch, Mira Ofenloch<br />
and Simon Schulz sold “Anticorit Synth”<br />
spray which was a real hit.<br />
Next year will mark the 10 th anniversary<br />
of the thirdlargest German company<br />
race and everyone is already curious<br />
what ideas the organizers will br<strong>in</strong>g to<br />
the anniversary celebration.<br />
7
8 Cover story<br />
“Wanted: Creative M<strong>in</strong>d”<br />
New impetus for idea management<br />
Alexander Liebenau has assumed the position as idea management officer.<br />
“I once read that each employee of a company<br />
has two to three proposals for improvement<br />
<strong>in</strong> m<strong>in</strong>d. Well, then all we need<br />
to do is to tap this potential“, Alexander<br />
Liebenau expla<strong>in</strong>s his mission. In July this<br />
year the eng<strong>in</strong>eer at <strong>FUCHS</strong> EUROPE<br />
SCHMIERSTOFFE assumed the responsibility<br />
of officer for idea management and is<br />
determ<strong>in</strong>ed to give the former “<strong>in</strong>ternal<br />
suggestion program“ a boost. “We must<br />
shift this topic to the focus of our employees“,<br />
says Liebenau, who counts on two<br />
attractive posters advertis<strong>in</strong>g idea management<br />
at <strong>FUCHS</strong>. “Wanted: Creative<br />
M<strong>in</strong>d!“ is the message to the staff. “Proposals<br />
for improvement can now be submitted<br />
to a dedicated email address:<br />
me<strong>in</strong>e-idee@fuchs-europe.de. We have<br />
also revised a form which can be downloaded<br />
under X/Ideenmanagement/Formulare“,<br />
reports Liebenau. Speedy<br />
process<strong>in</strong>g is particularly close to his heart.<br />
“Everyone who submits a proposal, I<br />
promise a decision on his/her idea with<strong>in</strong><br />
three months or a status report if proposal<br />
process<strong>in</strong>g takes longer.“ Each proposal<br />
will be verified by an expert, and dis<br />
cussed, once a month by a commission.<br />
Members are Alexander Liebenau and<br />
one representative each from the executive<br />
management, the work council, the<br />
human resources department, the plant<br />
management and occupational safety.<br />
“I hope to soon achieve the objective of<br />
100 proposals for improvement annually“,<br />
says Liebenau and is pleased to have<br />
already awarded several premiums. 15<br />
per cent of all sav<strong>in</strong>gs <strong>in</strong> the first year will<br />
be awarded to the “idea proposers“. If<br />
the sav<strong>in</strong>gs cannot be broken down to<br />
euro and cent, there is a range of premiums<br />
from 3 50 to 3 1,600. “I want this<br />
area to become more transparent“, says<br />
Liebenau and po<strong>in</strong>ts out that premiums<br />
will even be awarded if a good proposal<br />
cannot be implemented due to f<strong>in</strong>ancial<br />
constra<strong>in</strong>ts or capacity reasons. “We will<br />
also present the best proposals on official<br />
occasions, such as employee assemblies“,<br />
he says already th<strong>in</strong>k<strong>in</strong>g about new platforms<br />
for the presentation of idea management,<br />
and he wants to revive a raffle<br />
for all employees who have submitted a<br />
proposal.<br />
“I may even benefit from the good proposals<br />
myself”, hopes Alexander Liebenau.<br />
As a process eng<strong>in</strong>eer at the<br />
Mann heim site, it is his task to improve<br />
processes and organizational work flows.<br />
“Every good idea is welcome.“
“When a sales rep offered us an<br />
alterative filter at a lower price, we<br />
decided to run trials with this product.<br />
After a number of comprehensive<br />
tests, we were certa<strong>in</strong> these<br />
filters would also meet our requirements.<br />
The new filters have been <strong>in</strong><br />
use for about two years now and<br />
we have never encountered any<br />
problems. By chang<strong>in</strong>g the filter<br />
supplier we saved about 3 40,000<br />
per year. Our proposal was rewarded<br />
by a total of 3 6,000.”<br />
Cornelia Heuler (Warehouse) and<br />
Herbert Kunzmann (Foreman Tank<br />
Farm)<br />
”For quite a while I have wondered<br />
why the reports on small<br />
tests <strong>in</strong> the test bay we need for<br />
our work are delivered by the <strong>in</strong>ternal<br />
mail service. We then had<br />
to scan them to make them accessible<br />
on the computer. I proposed<br />
to send these reports as pdf files<br />
via email and thus save costs for<br />
paper and pr<strong>in</strong>t<strong>in</strong>g. Annual costs<br />
could be cut by 3 1,890 and I was<br />
pleased to receive a premium of<br />
3 283.“<br />
Katr<strong>in</strong> Borst,<br />
Team Leader R&D Metal Form<strong>in</strong>g<br />
Water-miscibles + Pastes<br />
“When we change to a new product,<br />
fill<strong>in</strong>g l<strong>in</strong>es <strong>in</strong> production<br />
plants are always flushed and<br />
cleaned with the liquid raw material<br />
that is used first for the recipe<br />
of the new product – costs didn’t<br />
matter. I proposed to change the<br />
<strong>in</strong>gredients list <strong>in</strong> such a way that<br />
the lowest cost liquid raw material<br />
was listed first and thus was<br />
used for flush<strong>in</strong>g. My proposal is<br />
still under review but I have<br />
already received a premium of<br />
3 310.“<br />
Ruven Ebner, Team Leader<br />
R&D Corrosion Prevention <strong>Oil</strong>s<br />
“Tak<strong>in</strong>g grease samples from our<br />
autoclav <strong>in</strong> Kiel at a temperature<br />
of 250 °C and a pressure of 2.5 bar<br />
(shortly before discharg<strong>in</strong>g the<br />
grease <strong>in</strong>to the cold mix<strong>in</strong>g kettle)<br />
is quite dangerous I th<strong>in</strong>k. Up to<br />
now, employee safety has only<br />
been provided by personal protective<br />
cloth<strong>in</strong>g. That is why I am<br />
glad that my proposal to <strong>in</strong>stall a<br />
mobile splash guard has been implemented.<br />
For my contribution<br />
to occupational safety I received<br />
3 620.”<br />
Niko K<strong>in</strong>ner,<br />
Grease Manufacture, Fettfarbik Kiel<br />
9
10 Focus<br />
“Purchas<strong>in</strong>g department faces<br />
great challenges“<br />
Raw material prices at an all-time high, availability of raw materials tight, and concentration<br />
trends on the procurement side – the purchas<strong>in</strong>g department at <strong>FUCHS</strong> must solve complex<br />
problems.<br />
For Executive Board Member Dr. Lutz L<strong>in</strong>demann, responsible for Purchas<strong>in</strong>g, secur<strong>in</strong>g a seamless supply<br />
cha<strong>in</strong> has top priority.<br />
A few figures reveal the importance of<br />
this division for the Group: 55 to 60 per<br />
cent of the sales revenues are the raw<br />
material costs. 200 different base oils<br />
alone and approximately 3,000 additives<br />
which are subdivided <strong>in</strong>to 19 functional<br />
groups are on the lists. “We produce numerous<br />
specialties and serve the most<br />
diverse niche markets. For us, additives<br />
are much more important than for our<br />
competitors”, says Executive Board<br />
Member Dr. Lutz L<strong>in</strong>demann, who is re<br />
sponsible for the supply cha<strong>in</strong>. Nevertheless,<br />
the procurement of base oils is<br />
<strong>in</strong> the focus of purchasers who have to<br />
deal with about 12 suppliers. But the<br />
oligopolistic structures do not worry L<strong>in</strong>demann<br />
because it is an environment<br />
<strong>FUCHS</strong> has been exposed to for many<br />
years and can rely on long years of experience.<br />
“Large petrochemical groups are<br />
no longer <strong>in</strong>terested <strong>in</strong> North Western<br />
Europe“, he states. “Their ref<strong>in</strong>eries cannot<br />
make any profits here – they focus<br />
on fuel production <strong>in</strong>stead. The volume<br />
of group 1 base oils produced <strong>in</strong> Europe<br />
has decl<strong>in</strong>ed for years and must be replaced<br />
by group II base oils. But those<br />
oils must be imported from the USA<br />
which does not necessarily make the<br />
supply cha<strong>in</strong> more expensive but def<strong>in</strong>itely<br />
more complex.“ But there is a silver<br />
l<strong>in</strong><strong>in</strong>g on the horizon: Through new<br />
capacities built up <strong>in</strong> the <strong>Middle</strong> <strong>East</strong><br />
and companies from Spa<strong>in</strong> and Russia<br />
possibly enter<strong>in</strong>g this market the situation<br />
could improve. “By 2014/2015, these<br />
new ref<strong>in</strong>ery capacities could be recognizable<br />
<strong>in</strong> Europe.”<br />
Even if the price of crude oil is only of<br />
collateral significance for <strong>FUCHS</strong>, L<strong>in</strong>demann<br />
keeps an eye on its development<br />
but is conservative giv<strong>in</strong>g forecasts.<br />
“After the extreme boom <strong>in</strong> 2008 and<br />
the subsequent slump we have aga<strong>in</strong><br />
reached alltime record highs <strong>in</strong> many<br />
raw material groups.” The crude oil price<br />
has <strong>in</strong>creas<strong>in</strong>gly become an object of<br />
speculation. Particularly the USA and<br />
Asia have a high liquidity and large portions<br />
are spent on raw materials – a sector<br />
which <strong>in</strong>vestors expect to generate<br />
high profits due to <strong>in</strong>creas<strong>in</strong>g shortages.<br />
“Fortunately, we are able to pass part of<br />
the costs onto the market“, says L<strong>in</strong>demann.<br />
What are the alternatives?<br />
Although crude oil will still be available<br />
<strong>in</strong> the com<strong>in</strong>g 50 to 90 years, possible alternatives<br />
are already on the agenda of<br />
<strong>FUCHS</strong>. “And it is not just about the geological<br />
but also the political availability“,<br />
L<strong>in</strong>demann po<strong>in</strong>ts out. “Significant crude<br />
oil suppliers such as Iran, Venezuela or<br />
the OPEC are not really stable regions.<br />
We will cont<strong>in</strong>ue to experience politically<br />
motivated crude oil shortages <strong>in</strong> the future.<br />
We also expect prices to rise as crude
oil deposits become scarce. Research <strong>in</strong>to<br />
technologies to convert coal, natural gas<br />
or biomass <strong>in</strong>to raw materials relevant to<br />
the production of <strong>FUCHS</strong> lubricants has<br />
already begun. With<strong>in</strong> the next 5 to 8<br />
years the processes and equipment will<br />
be available to produce basic material<br />
from biogenic material <strong>FUCHS</strong> can use.<br />
But he is not only concerned about crude<br />
oil – the availability of additives is also an<br />
issue. “For some products the worldwide<br />
production capacities are simply not sufficient”,<br />
he affirms. “That is why we need<br />
longterm agreements to guarantee<br />
<strong>FUCHS</strong> uses 200 different base oils alone <strong>in</strong> its lubricant production.<br />
availability. Fortunately, <strong>FUCHS</strong> has grown<br />
to a magnitude that is relevant for many<br />
suppliers.<br />
More than 50 employees at <strong>FUCHS</strong> deal<br />
with purchase matters. Global Purchas<strong>in</strong>g,<br />
which is directed by Dr. Jutta Heckenkamp,<br />
employs four lead buyers who are<br />
each responsible for certa<strong>in</strong> material<br />
groups, such as base oils, additives, esters<br />
and specialties. Global Purchas<strong>in</strong>g or Global<br />
Procurement is responsible for the<br />
seamless cooperation with the most important<br />
suppliers. If need be, they look<br />
<strong>in</strong>to alternatives and perform supplier<br />
evaluations. Lead Buyers manage about<br />
60 per cent of our procurement volume”,<br />
says L<strong>in</strong>demann. The rema<strong>in</strong><strong>in</strong>g 40 per<br />
cent are processed by the local purchas<strong>in</strong>g<br />
staff work<strong>in</strong>g <strong>in</strong> the various plants of<br />
the <strong>FUCHS</strong> Group. Regional purchasers<br />
based <strong>in</strong> Ch<strong>in</strong>a, North America and India<br />
contact <strong>in</strong>terest<strong>in</strong>g suppliers <strong>in</strong> the region<br />
and open deeper <strong>in</strong>sight <strong>in</strong>to these<br />
local procurement markets. “Altogether,<br />
our purchas<strong>in</strong>g organization structure re<br />
sembles a team of classic buyers, Product<br />
Management, Research and Development<br />
and also Environmental Health and<br />
Safety.”<br />
“The job of a buyer is complex and not<br />
easy”, he knows. “They need good nerves,<br />
stam<strong>in</strong>a and must understand the complex<br />
processes over the entire supply<br />
cha<strong>in</strong>” – and not only the processes of<br />
the first but also the second and third <strong>in</strong><br />
the l<strong>in</strong>e of suppliers.<br />
Availability has priority<br />
The concentration <strong>in</strong> many <strong>in</strong>dustries is<br />
an issue <strong>FUCHS</strong> has been deal<strong>in</strong>g with<br />
for many years. “For many of our raw<br />
materials there are only a small number<br />
of suppliers”, says L<strong>in</strong>demann. “That is<br />
why availability has top priority even if<br />
it requires pay<strong>in</strong>g a surcharge. Our ability<br />
to deliver must never be jeopardized“.<br />
Every year our suppliers are evaluated,<br />
i.e. they are scrut<strong>in</strong>ized <strong>in</strong> terms of<br />
contract loyalty, ability to deliver, <strong>in</strong>novation<br />
and price. The result<strong>in</strong>g rank<strong>in</strong>g is<br />
In the <strong>FUCHS</strong> PETROLUB Group more than 50<br />
employees are <strong>in</strong>volved <strong>in</strong> purchase processes.<br />
not only the basis for the purchase strategy<br />
of the <strong>FUCHS</strong> buyers but is also communicated<br />
to the bus<strong>in</strong>ess partners. “It<br />
turned out that our volume suppliers are<br />
quite <strong>in</strong>terested <strong>in</strong> do<strong>in</strong>g well <strong>in</strong> the<br />
rank<strong>in</strong>gs and put a lot of effort <strong>in</strong> improv<strong>in</strong>g<br />
their stand<strong>in</strong>g if results are not<br />
excellent“, reports L<strong>in</strong>demann. “We<br />
benefit from our position as technology<br />
leader and trend setter for new raw material<br />
grades.”<br />
11
12 Focus<br />
“Never buy from a new supplier before<br />
you have seen his factory”<br />
Dr. Jutta Heckenkamp attaches great importance to on-site <strong>in</strong>spections<br />
The search for alternative procurement<br />
sources is one of the major tasks of Dr.<br />
Jutta Heckenkamp, Vice President of<br />
Global Procurement at <strong>FUCHS</strong> PETRO<br />
LUB. For many of our base oils and additives<br />
there are only a few suppliers,<br />
some of which do not produce themselves<br />
and are act<strong>in</strong>g only as dealer”,<br />
says the chemist. Even if it seems that<br />
Protective cloth<strong>in</strong>g is mandatory before enter<strong>in</strong>g the molybdenum m<strong>in</strong>e.<br />
there were several alternatives it turns<br />
out <strong>in</strong> the end that the products all<br />
come from the same plant.” The reference<br />
book “Directory of World Chemical<br />
Producers” gives a first impression<br />
of the situation on the procurement<br />
market. <strong>FUCHS</strong> also uses external research<br />
services.<br />
“In a second step, we try to f<strong>in</strong>d out which<br />
of the potential suppliers actually produce<br />
the products themselves and then ask for<br />
samples and prices”, says Dr. Heckenkamp.<br />
And it is not as easy at it seems. “It makes<br />
no sense to send an email to a Ch<strong>in</strong>ese<br />
company or try to establish a personal<br />
contact <strong>in</strong> Ch<strong>in</strong>a. You absolutely need a<br />
qualified employee on site who is capable<br />
of speak<strong>in</strong>g the language.” Even a sample<br />
that is all right and meets the specific<br />
requirements of the EU Chemical Directive<br />
REACH cannot replace a visit to the<br />
premises.<br />
“Never purchase from an unknown source<br />
before you have personally seen the fac<br />
tory”, is the lesson Dr. Heckenkamp has<br />
learned. This requires her to travel the<br />
world to personally <strong>in</strong>spect production<br />
sites <strong>in</strong> Ch<strong>in</strong>a, Brazil or <strong>East</strong>ern Europe.<br />
She is always accompanied by a <strong>FUCHS</strong><br />
employee of the respective country who<br />
knows the processes. “It is not only about<br />
communication but also the review of<br />
documents and data”, affirms the head of<br />
Visit<strong>in</strong>g <strong>FUCHS</strong> suppliers is among the most<br />
im portant tasks of Dr. Jutta Heckenkamp. The<br />
photo shows her at a molybdenum disulphide<br />
supplier <strong>in</strong> the USA.<br />
Global Purchas<strong>in</strong>g. “If pigeons fly <strong>in</strong>to the<br />
production halls, rest on the beams over<br />
the open vessels and add their contribution<br />
to the quality of the raw material,<br />
then the supplier is not appropriate”, she<br />
<strong>in</strong>vokes one of the rather memorable experiences<br />
dur<strong>in</strong>g her travels. “If warehouses<br />
are not even dry and relatively tidy<br />
I don’t really trust the production either.”<br />
But surprises not only occur at new suppliers.<br />
“Once I visited the plant of a longstand<strong>in</strong>g<br />
bus<strong>in</strong>ess partner of our Ch<strong>in</strong>ese<br />
subsidiary together with a local colleague<br />
and was really shocked”, she remembers.<br />
“However, my impression of the formerly<br />
neglected competitor was rather positive.<br />
After some negotiations this company<br />
supplied us with the required products<br />
even at a lower price – what else do you<br />
need?”
Latest company news<br />
Break<strong>in</strong>g <strong>ground</strong> <strong>in</strong> <strong>Kaluga</strong><br />
<strong>FUCHS</strong> sets the course for growth on the Russian market<br />
On July 6, the spades stood ready and Stefan<br />
Fuchs and Anatoli Artamonow, Governor<br />
of <strong>Kaluga</strong> Oblast, needed no second<br />
ask<strong>in</strong>g to perform the <strong>ground</strong><strong>break<strong>in</strong>g</strong><br />
<strong>ceremony</strong> for the new plant of <strong>FUCHS</strong> OIL<br />
Russia. <strong>FUCHS</strong> will <strong>in</strong>vest about 3 20 million<br />
<strong>in</strong>to the <strong>Kaluga</strong> site. Accord<strong>in</strong>g to<br />
Nikolai Kuznetsov, Manag<strong>in</strong>g Director of<br />
<strong>FUCHS</strong> OIL RUSSIA, the <strong>in</strong>auguration of<br />
the new plant is planned for the end of<br />
2012. Modern production and fill<strong>in</strong>g systems,<br />
a laboratory as well as a tank farm<br />
and a f<strong>in</strong>ished product warehouse provide<br />
ideal conditions to foster the dynamic<br />
growth of <strong>FUCHS</strong> <strong>in</strong> Russia. “The high<br />
standards of the new plant will take the<br />
ris<strong>in</strong>g demand for highquality lubricants<br />
<strong>in</strong> our country <strong>in</strong>to account and strengthen<br />
our position with the customers”, emphasizes<br />
Kuznetsov.<br />
Sign<strong>in</strong>g the <strong>in</strong>vestment agreement between<br />
<strong>FUCHS</strong> OIL RUSSIA and the govern<br />
ment of the <strong>Kaluga</strong> Oblast, the town of<br />
<strong>Kaluga</strong> and the <strong>Kaluga</strong> Development Association<br />
paved the way for the new<br />
build<strong>in</strong>g. “<strong>FUCHS</strong> is aware of the importance<br />
of local presence <strong>in</strong> large growth<br />
markets such as Russia, and be<strong>in</strong>g not just<br />
represented by sales and logistics but a<br />
production plant”, Stefan Fuchs expla<strong>in</strong>s<br />
this commitment. “It is the only way to<br />
meet customer requirements right where<br />
the products are sold and generate a large<br />
portion of the return on <strong>in</strong>vestment with<br />
Many guests came to the <strong>ground</strong>-<strong>break<strong>in</strong>g</strong> <strong>ceremony</strong> for the new <strong>FUCHS</strong> plant <strong>in</strong> <strong>Kaluga</strong>.<br />
<strong>in</strong> the country.“ He appreciated the <strong>in</strong>vestorfriendly<br />
environment <strong>in</strong> <strong>Kaluga</strong>.<br />
Conversations and negotiations with authorities<br />
and the competent Development<br />
Association were characterized by a constructive<br />
and pleasant atmosphere.<br />
A large festival tent has been erected on<br />
the undeveloped area of the Industrial<br />
Park Rosva on occasion of the <strong>ground</strong><strong>break<strong>in</strong>g</strong><br />
<strong>ceremony</strong>. An extra, at the ready<br />
excavator symbolized the future construction<br />
site. Numerous guests from<br />
politics and also many <strong>FUCHS</strong> customers<br />
attended the <strong>ceremony</strong> – the media <strong>in</strong>terest<br />
was enormous. Christian Ohligmacher,<br />
Vice President Central & <strong>East</strong>ern<br />
Europe <strong>FUCHS</strong> PETROLUB is conv<strong>in</strong>ced<br />
that “<strong>Kaluga</strong>, where <strong>in</strong>ternational automobile<br />
manufacturers have formed a<br />
cluster, is the ideal location for us.“<br />
“Volkswagen Russia was trailblaz<strong>in</strong>g<br />
with the construction of their plant <strong>in</strong><br />
2007. Our neighbor <strong>in</strong> the Industrial Park<br />
Rosva is a plant jo<strong>in</strong>tly set up by the PSA<br />
Group (Peugeot and Citroen) and Mitsubishi<br />
<strong>in</strong> 2010. Now many reputable<br />
suppliers have planted their flags <strong>in</strong><br />
<strong>Kaluga</strong>.<br />
The <strong>in</strong>dustrial city located 200 kilometers<br />
southwest of Moscow produces for the<br />
Russian market. The new plant will cover<br />
a vast majority of the local demand.<br />
13
14 Latest company news<br />
Festival tents were erected on the occasion of the anniversary.<br />
WISURA celebrates 100-year anniversary<br />
<strong>FUCHS</strong> competence centre for metal work<strong>in</strong>g fluids is very successful<br />
WISURA GOLDGRABE & SCHEFT is the best example that tradition<br />
and <strong>in</strong>novation do go hand <strong>in</strong> hand. The <strong>FUCHS</strong> subsidiary<br />
based <strong>in</strong> Bremen, Germany has proven that a company of that<br />
age can re<strong>in</strong>vent itself and evolve from a ship eng<strong>in</strong>e oil merchant<br />
to a specialist for metal work<strong>in</strong>g with a staff of 34 employees<br />
and sales revenues of about 3 11.5 million <strong>in</strong> 2010.<br />
In 1911, the company founders Friedrich Goldgrabe and Richard<br />
Scheft started up a trad<strong>in</strong>g bus<strong>in</strong>ess for petroleum imported<br />
from America. Rapidly, the young company built a reputation <strong>in</strong><br />
the region and expanded with a laboratory where chemists analyzed<br />
lubricant qualities and experimented with ref<strong>in</strong>ement<br />
processes. The lubricant and fuel bus<strong>in</strong>ess ga<strong>in</strong>ed importance.<br />
“After World War II, WISURA became one of the market leaders<br />
<strong>in</strong> Europe”, says CEO Steffen Wolf. “In the long run, our company<br />
was too small.“ When <strong>FUCHS</strong> PETROLUB acquired a first 35<br />
per cent <strong>in</strong> 1983 and <strong>in</strong>creased its share to 85 per cent a few years<br />
later, the company decided to follow an <strong>in</strong>depth market analysis<br />
and focus on offer<strong>in</strong>g a comprehensive portfolio of lubricants. In<br />
contrast to the hydraulic fluids sector, you can achieve a lot with<br />
relatively small volumes and appropriate production capacities.<br />
Specialties <strong>in</strong> small quantities<br />
WISURA’s portfolio comprises more than 200 active recipes. The<br />
objective to deliver no later than 48 hours upon <strong>in</strong>quiry requires<br />
stock<strong>in</strong>g a wide spectrum of base materials <strong>in</strong> the warehouse.<br />
“Small quantities and not mass production are typical for our<br />
plant”, emphasizes Wolf. WISURA is specialized <strong>in</strong> products<br />
whose batches are often only five tons. Customerspecific production,<br />
approximately 75 per cent of all formulations, poses real<br />
challenges. Prototyp<strong>in</strong>g is frequently conducted at the customer<br />
under real production conditions. For such delicate processes the<br />
Lively celebrations on the occasion of the 100-year anniversary of WISURA.<br />
sales team needs expert knowhow. That is why WISURA has employed<br />
only graduate eng<strong>in</strong>eers <strong>in</strong> this field.<br />
In addition to supply<strong>in</strong>g customers from the <strong>in</strong>dustry – 80 per<br />
cent of which are automobile suppliers accord<strong>in</strong>g to CEO Wolf –<br />
OPTA is another pillar of the company based <strong>in</strong> Bremen. OPTA is<br />
a brand name for metal work<strong>in</strong>g fluids used <strong>in</strong> the crafts sector.<br />
S<strong>in</strong>ce April 2011 <strong>FUCHS</strong> has owned 100 per cent of WISURA. Nevertheless,<br />
the company will rema<strong>in</strong> <strong>in</strong>dependent and true to its<br />
location which is represented by the WISURA logo. It <strong>in</strong>corporates<br />
the key of the typical Bremen city coat of arms.<br />
This contribution is an excerpt from the article “Bremen’s key to<br />
specialization“, published <strong>in</strong> the trade magaz<strong>in</strong>e „Brennstoffspiegel“.
First steps <strong>in</strong>to professional life<br />
This year aga<strong>in</strong>, <strong>FUCHS</strong> facilitated new apprentices their first<br />
steps <strong>in</strong>to work<strong>in</strong>g life with an excit<strong>in</strong>g orientation week at the<br />
beg<strong>in</strong>n<strong>in</strong>g of September 2011. <strong>FUCHS</strong> welcomed 18 young men<br />
and women at the Mannheim site – two more <strong>in</strong> comparison to<br />
the previous year. For the first time, <strong>FUCHS</strong> accepted two undergraduate<br />
students of bus<strong>in</strong>ess computer science and bus<strong>in</strong>ess eng<strong>in</strong>eer<strong>in</strong>g<br />
of the BadenWuerttemberg Cooperative State University,<br />
who both launched their workstudy program at <strong>FUCHS</strong><br />
EUROPE SCHMIERSTOFFE. In addition, a chemical assistant apprentice<br />
from the Kiel plant also participated <strong>in</strong> the orientation.<br />
A comprehensive company presentation, group workshops and a<br />
tour of the premises provided the new employees with <strong>in</strong>sight<br />
<strong>in</strong>to the <strong>FUCHS</strong> Group. The highlight of the orientation week for<br />
our apprentices was the annual apprentice day – a visit at the<br />
Lebenshilfe Mannheim, an organization that helps mentally disabled<br />
persons. The new apprentices were supported by the technical<br />
tra<strong>in</strong>ers Bruno Knöpfel (left), Sandra Keller, Specialist<br />
Human Resources (2 nd from left), Jörg Vogel, CEO <strong>FUCHS</strong> EUROPE<br />
SCHMIERSTOFFE (2 nd from right) and Simone GrunertBaier,<br />
Human Resources <strong>FUCHS</strong> EUROPE SCHMIERSTOFFE (right).<br />
Apprentice day at the Lebenshilfe<br />
Games and fun with persons with special needs<br />
The annual apprentice day was aga<strong>in</strong> the<br />
highlight dur<strong>in</strong>g orientation week. On<br />
September 9, all <strong>FUCHS</strong> apprentices gathered<br />
at the Mannheim Lebenshilfe, an organization<br />
that has been car<strong>in</strong>g for people<br />
with special needs s<strong>in</strong>ce 1961. Meet<strong>in</strong>g<br />
po<strong>in</strong>t was the new Lebenshilfe k<strong>in</strong>dergarten<br />
<strong>in</strong> Distelsand 11. For the <strong>in</strong>auguration<br />
at the end of October, everyone was avidly<br />
pa<strong>in</strong>t<strong>in</strong>g and craft<strong>in</strong>g and support<br />
from the <strong>FUCHS</strong> apprentices was well received.<br />
The <strong>FUCHS</strong> youngsters were also<br />
<strong>in</strong>volved <strong>in</strong> the FreeHelp program which<br />
<strong>in</strong>cluded holiday games for children with<br />
special needs. The apprentices enjoyed<br />
the activity and had just as much fun as<br />
the boys and girls supported by the Lebenshilfe.<br />
Senior citizens also came to the<br />
k<strong>in</strong>dergarten on the occasion of the apprentice<br />
visit, jo<strong>in</strong>ed activities and games<br />
and handed over a donation.<br />
“The feedback from the apprentices was<br />
extremely positive”, says Sandra Keller,<br />
Specialist Human Resources. “After hav<strong>in</strong>g<br />
spent an apprentice day at the Regenbogen<br />
K<strong>in</strong>dergarten where disabled and not<br />
disabled children receive care, we opted<br />
aga<strong>in</strong> for a social <strong>in</strong>stitution. Strengthen<strong>in</strong>g<br />
social competence of the <strong>FUCHS</strong> apprentices<br />
is an important element of their<br />
education.”<br />
Play<strong>in</strong>g with children with special needs was a valuable<br />
experience and tons of fun for the apprentices.<br />
15
16<br />
Latest company news<br />
Michael Lippert on tour<br />
An absolute highlight for every longdistance<br />
cyclist is the bicycle marathon<br />
Paris-Brest-Paris. Every four years, am -<br />
bi tious amateurs conquer a distance of<br />
1,230 kilometers and about 10,000<br />
me ters of altitude. This year, Michael<br />
<strong>FUCHS</strong> BELGIUM goes Benelux<br />
Belgian company go<strong>in</strong>g solo <strong>in</strong> the market<br />
Two years ago, <strong>FUCHS</strong> subsidiary <strong>FUCHS</strong><br />
BELGIUM, which had previously focused<br />
ma<strong>in</strong>ly on the production of lubricants,<br />
decided to go solo <strong>in</strong> the regional<br />
market but soon realized that it<br />
had <strong>in</strong>sufficient capacity for organic<br />
growth. All thoughts at that time were<br />
focused on Dutch bus<strong>in</strong>ess which had<br />
been managed for many years by Lubribond<br />
B.V. Despite good bus<strong>in</strong>ess relations<br />
and recognition of the competence<br />
of this reliable partner, it was<br />
clear that Lubribond was unable to <strong>in</strong>crease<br />
the sales of lubricants. In close<br />
Lippert, an employee of <strong>FUCHS</strong> EU -<br />
ROPE SCHMIERSTOFFE <strong>in</strong> Kiel was<br />
among the 6,000 participants from 50<br />
countries. He overcame the distance<br />
energized by his <strong>FUCHS</strong> jersey <strong>in</strong> an<br />
impressive 65.6 hours.<br />
collaboration with <strong>FUCHS</strong> EUROPE<br />
SCHMIERSTOFFE, Eddy Robyns, CEO of<br />
<strong>FUCHS</strong> BELGIUM, submitted a takeover<br />
offer to Luribond for the Dutch company’s<br />
customer base <strong>in</strong> autumn 2010.<br />
The result<strong>in</strong>g contract was signed on<br />
1 July 2011 after n<strong>in</strong>e months of negotiations.<br />
At the same time, the company<br />
name was also changed from <strong>FUCHS</strong><br />
BELGIUM to <strong>FUCHS</strong> LUBRICANTS BENE<br />
LUX as a clear sign to the market. “The<br />
time for organic growth has now come<br />
follow<strong>in</strong>g the acquisition”, says Eddy<br />
Robyns.<br />
New rooms<br />
<strong>in</strong> F<strong>in</strong>land<br />
<strong>FUCHS</strong> OIL FINLAND headquartered<br />
<strong>in</strong> Vaasa has moved <strong>in</strong>to<br />
new premises. The new office is<br />
located <strong>in</strong> the Vaasa Science Park<br />
which hosts numerous scientific<br />
operations and also many companies<br />
from the <strong>in</strong>formation technology<br />
and design sectors and<br />
service providers. The F<strong>in</strong>nish<br />
<strong>FUCHS</strong> subsidiary has outsourced<br />
logistics to CT Logistics to cut<br />
costs <strong>in</strong> the mid term and focus<br />
on the core bus<strong>in</strong>ess. The warehouse<br />
of CT Logistics, located <strong>in</strong><br />
Tampere <strong>in</strong> central F<strong>in</strong>land, features<br />
good storage conditions.<br />
All data can be retrieved onl<strong>in</strong>e<br />
<strong>in</strong> real time. CT Logistics has a<br />
good reputation and renowned<br />
customers, such as Rolls Royce,<br />
F<strong>in</strong>land.<br />
Sign<strong>in</strong>g the contract: (from left to right) Eddo Cammeraat,<br />
CEO Lubribond, Eddy Robyns, CEO <strong>FUCHS</strong><br />
LUBRICANTS BENELUX, and Edw<strong>in</strong> van der Spek,<br />
CFO Lubribond.
Anniversary <strong>in</strong> Australia<br />
<strong>FUCHS</strong> LUBRICANTS (AUSTRALASIA) was founded 100 years ago<br />
With two production plants <strong>in</strong> Melbourne<br />
and Newcastle and 12 sales centers <strong>in</strong><br />
Australia and New Zealand, <strong>FUCHS</strong> LU<br />
BRICANTS (AUSTRALASIA) flies its flag on<br />
the smallest cont<strong>in</strong>ent and is positioned<br />
as a supplier of highquality products <strong>in</strong><br />
the region. In consequence to this success<br />
<strong>FUCHS</strong> <strong>in</strong>vested AUD 6 million (3 4.5 million)<br />
<strong>in</strong> the subsidiary over the last two<br />
years. A grease factory was set up for<br />
AUD 3 million and a new laboratory and<br />
eng<strong>in</strong>eer<strong>in</strong>g centre (AUD 1.5 million) was<br />
<strong>in</strong>augurated <strong>in</strong> Melbourne this year. It<br />
will strengthen the company’s research<br />
and development activities. Further <strong>in</strong>vestment<br />
total<strong>in</strong>g AUD 1 million (3 0.74<br />
million) is <strong>in</strong> the pipel<strong>in</strong>e. The company is<br />
market leader for all types of biodegradable<br />
lubricants and process fluids and<br />
their respective application technology.<br />
“The market share of these products is<br />
rapidly ris<strong>in</strong>g but there still is a large potential<br />
to tap. I believe that our customers<br />
will want more of these products <strong>in</strong><br />
the future”, says CEO Wayne Hoiles. Currently,<br />
strong growth can be observed <strong>in</strong><br />
the m<strong>in</strong><strong>in</strong>g and agricultural sectors.<br />
Hoiles also foresees a trend towards highquality<br />
synthetic products. After the takeover<br />
of CASSIDA, he also wants to w<strong>in</strong><br />
new customers <strong>in</strong> the food <strong>in</strong>dustry and is<br />
absolutely certa<strong>in</strong> that <strong>FUCHS</strong> LUBRI<br />
CANTS (AUSTRALASIA) will be thriv<strong>in</strong>g<br />
for the next 100 years.<br />
On track for further expansion:<br />
<strong>FUCHS</strong> LUBRICANTS (AUSTRALASIA) looks back on 100 years of company history.<br />
Scholarships for<br />
Leon and Michelle<br />
Leon Wilson (right) and Michelle Quiroz,<br />
both students at Thornton Township<br />
High School <strong>in</strong> Harvey, home to<br />
<strong>FUCHS</strong> LUBRICANTS, were the proud<br />
recipients of a scholarship from the L.<br />
Frank Kle<strong>in</strong>man Scholarship foundation.<br />
President Steve Puffpaff (left)<br />
showed the two young people and<br />
their families around the plant and<br />
<strong>in</strong>vited them to d<strong>in</strong>ner. Here, they met<br />
Steve Puffpaff’s predecessor, L. Frank<br />
Kle<strong>in</strong>man, <strong>in</strong> honor of whom the foundation<br />
was set up last year.<br />
17
18 Latest company news<br />
Tra<strong>in</strong><strong>in</strong>g and<br />
exchange<br />
On May 15 <strong>FUCHS</strong> LUBRITECH service<br />
eng<strong>in</strong>eers from n<strong>in</strong>e countries<br />
visited the FLT ACADEMY International<br />
tak<strong>in</strong>g place <strong>in</strong> Kaiserslautern.<br />
One important item of the tra<strong>in</strong><strong>in</strong>g<br />
was the extensive exchange experience<br />
of the worldwide operat<strong>in</strong>g<br />
eng<strong>in</strong>eers responsible for the service<br />
of big open gearboxes. The FLT<br />
ACADEMY reflected on case histories<br />
from diverse fields as well as<br />
on countryspecific topics or general<br />
topics such as <strong>in</strong>dustry trends,<br />
market developments and future<br />
technologies. The presentations<br />
dealt with FLT standards for the<br />
basic service of open gearboxes, lubricant<br />
quantity calculation for<br />
various spray systems under operat<strong>in</strong>g<br />
conditions, gr<strong>in</strong>d<strong>in</strong>g trends<br />
for vertical mills and roller presses.<br />
The most important objective of<br />
the academy tra<strong>in</strong><strong>in</strong>g was reached,<br />
namely to safeguard the high technical<br />
standard of FLT Service Eng<strong>in</strong>eer<strong>in</strong>g<br />
and f<strong>in</strong>d po<strong>in</strong>ts of departure<br />
for further developments.<br />
The 7 th ZGK Sem<strong>in</strong>ar enthuses all participants.<br />
Successful ZKG Sem<strong>in</strong>ar<br />
Positive feedback from all participants<br />
The 7 th cement, lime, gypsum sem<strong>in</strong>ar<br />
<strong>FUCHS</strong> LUBRITECH hosted <strong>in</strong> May 2011<br />
focused on “Commission<strong>in</strong>g and Recommission<strong>in</strong>g<br />
of plants”. It took place <strong>in</strong><br />
Kaiserslautern, headquarter of <strong>FUCHS</strong><br />
LUBRITECH. Various presentations reflected<br />
the correct storage of mach<strong>in</strong>e<br />
elements, <strong>in</strong>itial lubrication at recommission<strong>in</strong>g<br />
and the selection of lubricants<br />
suitable for refill<strong>in</strong>g systems and mach<strong>in</strong>e<br />
elements. Well received were the fieldrelated<br />
presentations on the recommission<strong>in</strong>g<br />
of treatment plans, the proper<br />
documentation <strong>in</strong> case of damage, as<br />
well as filtration for the <strong>in</strong>itial fill<strong>in</strong>g and<br />
refill<strong>in</strong>g of gear boxes and hydraulic systems.<br />
The experts present<strong>in</strong>g <strong>in</strong>cluded<br />
Michael Bödigheimer, Sales Manager Industry,<br />
Günter Huschitt, Team Leader Application<br />
Technology, Klaus Holz, Manager<br />
Eng<strong>in</strong>eer<strong>in</strong>g Service, Ilona Rhe<strong>in</strong>,<br />
Product Manager Fluids, Günter Haferanke,<br />
Senior Service Eng<strong>in</strong>eer, and Mart<strong>in</strong><br />
Reik, Manager Technical Sales of Hydac<br />
International. At the specific request of<br />
the sem<strong>in</strong>ar participants Bernhard Biehl,<br />
CEO, and Matthias Pemsel, Production<br />
Manager, gave a tour of the premises<br />
show<strong>in</strong>g the stateoftheart lubricant<br />
production <strong>in</strong> Kaiserslautern. Great <strong>in</strong>terest<br />
also was sparked by the parallel tours<br />
and workshops <strong>in</strong> the Quality Control Department<br />
of Jochen Weissmann, and the<br />
test bay of Ralf Schwitkowski.<br />
On the way<br />
to the top<br />
Keep<strong>in</strong>g f<strong>in</strong>gers crossed helped: The<br />
rugby team of W<strong>in</strong>dhoek Afrikaanse<br />
Privaatskool, which Namibia Lubricants<br />
will sponsor for the next three<br />
years, stepped on the gas. For the<br />
first time, they made it to the semif<strong>in</strong>als<br />
and eventually f<strong>in</strong>ished third.<br />
The photo shows <strong>in</strong> the first row<br />
(from the left) sponsor Bernard<br />
Pretorius, Alf Untersteller, Member of<br />
the Group’s Executive Committee,<br />
and David Page, CEO of <strong>FUCHS</strong> LU -<br />
BRICANTS (SOUTH AFRICA) amidst<br />
the successful players suited up <strong>in</strong><br />
<strong>FUCHS</strong> logo jerseys.
Welcome and farewell<br />
The celebration at the ALHAMRANI-<br />
<strong>FUCHS</strong> PETROLEUM SAUDI-ARABIA<br />
(AFPSA) on July 4 was characterized<br />
by mixed emotions. Pride and joy<br />
because the plant was certified ac -<br />
cord<strong>in</strong>g to OHSAS 18001 and also<br />
sadness because Mohammed Ibrahim<br />
Badawi, Head of Adm<strong>in</strong>istration for<br />
23 years, said farewell to the company.<br />
Zafar A. Talpur, President of<br />
the corporation, emphasized that<br />
certification of the AFPSA plant <strong>in</strong><br />
Yanbu enabled the company to be<br />
on par with state-of-the-art production<br />
plants <strong>in</strong> Europe and Asia. The<br />
certification stands not only for<br />
high-quality products and eco-friendl<strong>in</strong>ess<br />
but also social achievements.<br />
Together with Mohammed Hanif<br />
Sattar, Vice President Operations &<br />
Technical, he handed gifts to management<br />
and staff and naturally to<br />
Mohammed Ibrahim Badawi <strong>in</strong> recognition<br />
of his achievements.<br />
“An Opportunity for a Breakthrough”<br />
Higher prices discussed at dealer conference<br />
Controller <strong>in</strong><br />
Shanghai<br />
15 controllers and f<strong>in</strong>ance managers<br />
from the “AsiaPacific, Africa”<br />
region came to Shanghai to take<br />
part <strong>in</strong> the 4 th Controller Meet<strong>in</strong>g<br />
which took place on 25 and 26<br />
August.<br />
Dr. Selent, Deputy Chairman of the<br />
Executive Board, had come from<br />
Germany together with Re<strong>in</strong>er<br />
Schmidt, member of the Group’s Executive<br />
Committee, Dirk Drechsler,<br />
Head of Internal Audit, Gerhard<br />
Schmitt and Joerg Day to attend<br />
the meet<strong>in</strong>g. The meet<strong>in</strong>g was<br />
hosted by Klaus Hartig, member of<br />
the Group’s Executive Committee.<br />
Dr. Selent presented the strategy,<br />
the f<strong>in</strong>ancial performance, the targets<br />
and the compliance rules of<br />
the <strong>FUCHS</strong> Group. The topics discussed<br />
ranged from controller<br />
responsibilities to key controll<strong>in</strong>g<br />
figures, from work<strong>in</strong>g capital management<br />
to compliance and the <strong>in</strong>ternal<br />
control system, and from<br />
FWR report<strong>in</strong>g technically to deferred<br />
tax report<strong>in</strong>g.<br />
The meet<strong>in</strong>g was rounded off by a<br />
visit to the new <strong>FUCHS</strong> factory <strong>in</strong><br />
Shanghai and an even<strong>in</strong>g program<br />
at the modern bank<strong>in</strong>g and f<strong>in</strong>ance<br />
district <strong>in</strong> Shanghai.<br />
An <strong>in</strong>crease <strong>in</strong> the price of lubricants is <strong>in</strong>evitable due to a rise <strong>in</strong><br />
energy consumption caused by the economic recovery, the result<strong>in</strong>g<br />
oil shortages and the rapid <strong>in</strong>crease <strong>in</strong> car production <strong>in</strong><br />
Ch<strong>in</strong>a, which has <strong>in</strong>creased demand further. This challenge was<br />
the focus of the <strong>FUCHS</strong> LUBRICANTS (CHINA) dealer conference<br />
for the automotive <strong>in</strong>dustry which took place under the banner<br />
of “an opportunity for a breakthrough”. More than 120 distributors<br />
came to Zhang Jiajie <strong>in</strong> May. David Watts, jo<strong>in</strong>t CEO and<br />
COO, and vice president Yu Zhihe made it clear that targets for<br />
2011 could be achieved if everyone worked together and that a<br />
price rise could become an opportunity if seized with determ<strong>in</strong>ation.<br />
As always, the highlight of the conference was the awards<br />
<strong>ceremony</strong>. The w<strong>in</strong>ners of the Golden Medal Distributor were<br />
toasted with champagne and won flight tickets to Germany. More than 120 dealers took part <strong>in</strong> the conference <strong>in</strong> Zhang Jiajie.<br />
19
20 Trade and promotion activities<br />
Bound to tradition<br />
<strong>FUCHS</strong> OIL RUSSIA shows its colors <strong>in</strong> Novokuznetsk<br />
Aga<strong>in</strong> this year, the <strong>in</strong>ternational exhibition<br />
for m<strong>in</strong><strong>in</strong>g technology and exploration<br />
<strong>in</strong> Western Siberian Novokuznetsk<br />
“Ugol Rossii & M<strong>in</strong><strong>in</strong>g“ provided the ideal<br />
platform for national and <strong>in</strong>ternational<br />
representatives of the <strong>in</strong>dustry. From June<br />
7 through 10, more than 21,000 visitors<br />
teemed the fair<strong>ground</strong>s where 620 exhibitors<br />
(485 <strong>in</strong> the previous year) from 22<br />
countries were assembled. For the fourth<br />
time <strong>FUCHS</strong> OIL RUSSIA presented a stand<br />
which aga<strong>in</strong> <strong>in</strong> 2011 was recognized and<br />
praised by the ABMEC, Association of<br />
British M<strong>in</strong><strong>in</strong>g Equipment Manufacturers<br />
and the trade fair organization committee<br />
for its hightech design, efficient layout<br />
and excellent product presentation.<br />
The m<strong>in</strong><strong>in</strong>g product portfolio <strong>FUCHS</strong> presented<br />
at the traditional event sparked<br />
great <strong>in</strong>terest. A sem<strong>in</strong>ar on the topic of<br />
“Fireresistant fluids for coal m<strong>in</strong><strong>in</strong>g” not<br />
only generated numerous contacts and<br />
successful negotiations with representatives<br />
of Russian and <strong>in</strong>ternational m<strong>in</strong><strong>in</strong>g<br />
companies, but also <strong>in</strong>creased brand<br />
awareness and recognition of <strong>FUCHS</strong> <strong>in</strong><br />
the region. As at previous events, the<br />
m<strong>in</strong><strong>in</strong>g fair was under the aegis of the<br />
<strong>FUCHS</strong> Global M<strong>in</strong><strong>in</strong>g Division, represented<br />
ma<strong>in</strong>ly by Martyn Rushton of the<br />
Food safety <strong>in</strong> focus<br />
Meet<strong>in</strong>g po<strong>in</strong>t for the coal and m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry: The trade fair “Ugol Rossii & M<strong>in</strong><strong>in</strong>g“ <strong>in</strong> the Western<br />
Siberian coal capital Novokuznetsk.<br />
<strong>FUCHS</strong> (UK) International M<strong>in</strong><strong>in</strong>g Division.<br />
The many visitors took advantage of the<br />
opportunity to meet a large number of<br />
conversation partners <strong>in</strong> a relatively short<br />
<strong>FUCHS</strong> LUBRICANTS (CHINA) successful with CASSIDA products<br />
timeframe and jo<strong>in</strong>tly enjoyed the <strong>in</strong>dustry’s<br />
positive development. By 2030, the<br />
Russian government plans to double coal<br />
production.<br />
Increas<strong>in</strong>gly more attention is paid to food safety <strong>in</strong> Ch<strong>in</strong>a, too.<br />
That is why the presentation of CASSIDA and GERALYN foodgrade<br />
lubricants were so widely recognized at the process<strong>in</strong>g<br />
and packag<strong>in</strong>g trade fair PROPAK CHINA 2011 from July 13<br />
through 15 <strong>in</strong> Shanghai. <strong>FUCHS</strong> was able to conv<strong>in</strong>ce a grow<strong>in</strong>g<br />
number of manufacturers of food, beverage and pharmaceutical<br />
products of the significance of foodgrade lubricants to m<strong>in</strong>imize<br />
contam<strong>in</strong>ation and thus build trust <strong>in</strong> their products. <strong>FUCHS</strong> also<br />
gave practical advice on how to use the lubricants <strong>in</strong> order to<br />
provide optimum food safety. Dur<strong>in</strong>g the sem<strong>in</strong>ar “Scientific and<br />
Technical Information Institute of Shanghai Food and Drug Adm<strong>in</strong>istration”<br />
Li Tong, Sales Manager of the <strong>FUCHS</strong> LUBRITECH<br />
Division gave a presentation on “Food-grade lubricants – reduc<strong>in</strong>g<br />
the risk of contam<strong>in</strong>ation”. The presentation was followed<br />
by a lively conversation of reputable representatives from the<br />
government, science and companies on food safety, foodgrade<br />
lubricants and the approvals and certifications. In Ch<strong>in</strong>a too food-grade lubricants raise <strong>in</strong>creas<strong>in</strong>gly more <strong>in</strong>terest.
Sweet bus<strong>in</strong>ess with sugar cane<br />
<strong>FUCHS</strong> DO BRASIL presents a the “Fenasucro”<br />
The worldwide largest assembly of the sugar cane <strong>in</strong>dustry:<br />
The “Fenasucro“ opened its gates <strong>in</strong> Brazilian Sertaoz<strong>in</strong>ho<br />
from August 30 to September 2 2011. With about 33,000<br />
visitors and 450 exhibitors the fair was even more successful<br />
than last year. The fair assembled experts <strong>in</strong> the <strong>in</strong>dustry<br />
from 40 countries who represented the entire production<br />
cha<strong>in</strong>: from acreage cultivation to plant<strong>in</strong>g, harvest<strong>in</strong>g all<br />
the way to <strong>in</strong>dustrial process<strong>in</strong>g and market<strong>in</strong>g. For <strong>FUCHS</strong>,<br />
regular attendance at the exhibition is crucial to position the<br />
highquality specialties of the <strong>FUCHS</strong> LUBRITECH range and<br />
assert this position.<br />
Aga<strong>in</strong>, the participation <strong>in</strong> the “Fenasucro” was a big success.<br />
Numerous customers visited the <strong>FUCHS</strong> stand – sometimes<br />
the crush exceeded the stands capacities. The sugar cane <strong>in</strong>dustry is an important customer for <strong>FUCHS</strong> DO BRASIL.<br />
W<strong>in</strong>d power picks up<br />
momentum<br />
W<strong>in</strong>d power is ga<strong>in</strong><strong>in</strong>g importance <strong>in</strong> Brazil, too.<br />
“Where w<strong>in</strong>d power is concerned, Brazil is a sleep<strong>in</strong>g giant slowly<br />
wak<strong>in</strong>g up”, says Steve Sawyer, Secretary General of the “Global<br />
W<strong>in</strong>d Energy Council”. “This country has great potential”.<br />
Currently w<strong>in</strong>d turb<strong>in</strong>e parks of 5,175 MW are under construction,<br />
which is an enormous boost because exist<strong>in</strong>g w<strong>in</strong>d turb<strong>in</strong>es<br />
do not exceed the 1,120 MW range. This is a development that<br />
encouraged <strong>FUCHS</strong> DO BRASIL to participate <strong>in</strong> the “W<strong>in</strong>dPower<br />
2011” <strong>in</strong> Rio de Janeiro from August 31 through September 2, <strong>in</strong><br />
order to break <strong>in</strong>to the new market with support of the W<strong>in</strong>d<br />
Power Division.<br />
CASSIDA on the<br />
start<strong>in</strong>g l<strong>in</strong>e<br />
The Brazilian <strong>FUCHS</strong> subsidiary presents the CASSIDA product range.<br />
The Fispal Tecnologia <strong>in</strong> Sao Paulo is the largest process<strong>in</strong>g and<br />
packag<strong>in</strong>g trade fair for the food <strong>in</strong>dustry <strong>in</strong> Lat<strong>in</strong> America and<br />
exactly the right platform for the presentation of the new CAS<br />
SIDA range which was confirmed by the lively <strong>in</strong>terest of large<br />
players <strong>in</strong> the <strong>in</strong>dustry. With 64,000 trade fair visitors and more<br />
than 2,000 exhibit<strong>in</strong>g companies, the fair tak<strong>in</strong>g place from June<br />
7 through 10 offered great contact opportunities. In addition,<br />
many <strong>in</strong>ternationally operat<strong>in</strong>g companies attended the fair to<br />
scope out their chances on the Brazilian market. In 2012, the<br />
Fispal Tecnologia will expand even further to a fair<strong>ground</strong> area<br />
of 80,000 sqm, beat<strong>in</strong>g all records and becom<strong>in</strong>g the cornerstone<br />
of Lat<strong>in</strong> America’s food and beverage market.<br />
21
22 Trade and promotion activities<br />
M<strong>in</strong><strong>in</strong>g exhibition boosts sales revenues<br />
AIMEX <strong>in</strong> Australia with record figures<br />
It was the top event of the <strong>in</strong>dustry:<br />
The m<strong>in</strong><strong>in</strong>g exhibition AIMEX <strong>in</strong> the<br />
Olympic Stadium <strong>in</strong> Sydney <strong>in</strong> September.<br />
The event, which only takes place<br />
every four years, hosted 17,000 visitors<br />
from 49 countries – 40 per cent more<br />
than <strong>in</strong> 2007 – and a clear <strong>in</strong>dication of<br />
the boom<strong>in</strong>g m<strong>in</strong><strong>in</strong>g <strong>in</strong>dustry <strong>in</strong> Australia.<br />
<strong>FUCHS</strong> LUBRICANTS (AUSTRAL<br />
ASIA) presented their products <strong>in</strong> a<br />
twostorey stand, especially designed<br />
and built for this event. It attracted<br />
many old and new customers. On occasion<br />
of the AIMEX, the Australian<br />
<strong>FUCHS</strong> subsidiary hosted the global<br />
meet<strong>in</strong>g of the <strong>FUCHS</strong> m<strong>in</strong><strong>in</strong>g division.<br />
Representatives of the most important<br />
<strong>FUCHS</strong> flies flag at Waterfest<br />
The Waterfest 17 <strong>in</strong> Englishtown, New<br />
Jersey, is not just the largest VW and Audi<br />
show <strong>in</strong> North America but a real festival.<br />
On both July 16 and 17, more than 20,000<br />
people came to the event where <strong>FUCHS</strong><br />
<strong>FUCHS</strong> companies operat<strong>in</strong>g <strong>in</strong> the<br />
m<strong>in</strong><strong>in</strong>g bus<strong>in</strong>ess attended the event<br />
and presented case studies from their<br />
countries.<br />
John Elliott, Head of the Global M<strong>in</strong><strong>in</strong>g<br />
Division, emphasized the division’s success.<br />
Sales revenues <strong>in</strong> 2011 will clearly<br />
exceed the figures of the record year<br />
2010. The opencast m<strong>in</strong><strong>in</strong>g bus<strong>in</strong>ess<br />
has a big share <strong>in</strong> this success. Presentations<br />
by Rob Fry on opencast m<strong>in</strong><strong>in</strong>g<br />
developments <strong>in</strong> Australia and Fred<br />
Blancett from Kansas City on the latest<br />
research and development results <strong>in</strong><br />
this area confirmed the enormous potential<br />
of this <strong>in</strong>ternational market.<br />
EUROPE SCHMIER STOFFE and its dealership<br />
Northside Imports showed their<br />
colors. <strong>FUCHS</strong> was the only lubricant<br />
manufacturer at the event and enjoyed<br />
the vast <strong>in</strong>terest by VW enthusiasts.<br />
On the occasion of its 100-year anniversary <strong>FUCHS</strong><br />
LUBRICANTS (AUSTRALASIA) presented a new stand<br />
at AIMEX (see also page 17).<br />
WINDPOWER<br />
2011 with great<br />
momentum<br />
W<strong>in</strong>d power <strong>in</strong>creas<strong>in</strong>gly ga<strong>in</strong>s importance<br />
<strong>in</strong> the USA. A good reason<br />
for Dirk Kempkes (<strong>FUCHS</strong> EU<br />
ROPE SCHMIERSTOFFE), Hanno<br />
Paul (<strong>FUCHS</strong> LUBRITECH), Hendrik<br />
Noth, Division Manager FLT <strong>FUCHS</strong><br />
LUBRICANTS, and Don Brazen<br />
(<strong>FUCHS</strong> LUBRICANTS) to represent<br />
the <strong>FUCHS</strong> W<strong>in</strong>d Power Division at<br />
the W<strong>in</strong>dpower 2011, the exhibition<br />
of the American W<strong>in</strong>d Energy<br />
Association (AWEA) <strong>in</strong> Anaheim,<br />
California last May. An <strong>in</strong>terview<br />
with Hendrik Noth and an advertisement<br />
<strong>in</strong> a trade journal which<br />
was handed out at the fair, sparked<br />
<strong>in</strong>terest among potential customers<br />
to visit the stand. The feedback<br />
was good – many conversations focused<br />
on the potential expansion<br />
of w<strong>in</strong>d power activities. The fair<br />
<strong>in</strong> Anaheim was attended by more<br />
than 20,000 visitors and about<br />
1,300 exhibitors. <strong>FUCHS</strong> will participate<br />
<strong>in</strong> the next exhibition too,<br />
which will be hosted <strong>in</strong> Atlanta,<br />
Georgia.
Names and news<br />
Simon Huang Yi<br />
Chien<br />
Henry Shiang<br />
Trevor Gawne<br />
Simon Huang Yi Chien<br />
has passed away<br />
Simon Huang Yi Chien, CEO of <strong>FUCHS</strong> LUBRICANTS TAIWAN<br />
lost his battle with cancer on 23 August 2011 <strong>in</strong> Taipei at the<br />
age of 50. He will always be remembered by his team <strong>in</strong> Taiwan<br />
and the entire company.<br />
Simon Huang Yi Chien jo<strong>in</strong>ed <strong>FUCHS</strong> LUBRICANTS TAIWAN <strong>in</strong><br />
1998 as sales manager for <strong>in</strong>dustrial products and over the<br />
many years he worked for the company, he was always a committed,<br />
loyal and hardwork<strong>in</strong>g member of the team. In 2006,<br />
he was appo<strong>in</strong>ted CEO. Under his leadership, <strong>FUCHS</strong> LUBRI<br />
CANTS TAIWAN grew steadily, even <strong>in</strong> times of crisis, and frequently<br />
exceeded targets. Even when he fell ill, he cont<strong>in</strong>ued<br />
to work.<br />
The wellbe<strong>in</strong>g of his employees, bus<strong>in</strong>ess partners and visitors<br />
was always important to Simon Huang Yi Chien. Everyone<br />
who met him was made to feel welcome. He will be sorely<br />
missed by everyone <strong>in</strong> the company. His funeral took place <strong>in</strong><br />
Taipei on 19 September.<br />
New CEO of <strong>FUCHS</strong><br />
LUBRICANTS TAIWAN<br />
Henry Shiang who jo<strong>in</strong>ed the <strong>FUCHS</strong> Group on 26 September<br />
2011 took over the position as CEO of <strong>FUCHS</strong> LUBRICANTS<br />
TAIWAN. Henry Shiang has extensive experience <strong>in</strong> the Taiwanese<br />
lubricants sector and has held management positions<br />
at different companies <strong>in</strong> this <strong>in</strong>dustry.<br />
CEO <strong>in</strong> S<strong>in</strong>gapore<br />
leaves <strong>FUCHS</strong><br />
Trevor Gawne, CEO of <strong>FUCHS</strong> LUBRICANTS <strong>in</strong> S<strong>in</strong>gapore and<br />
regional controller for South <strong>East</strong> Asia and Australasia left<br />
<strong>FUCHS</strong> at the end of September. He returned to Australia with<br />
his family. Trevor Gawne jo<strong>in</strong>ed the company <strong>in</strong> October 2003.<br />
He built up a strong team <strong>in</strong> S<strong>in</strong>gapore and helped to further<br />
develop the controll<strong>in</strong>g and report<strong>in</strong>g system <strong>in</strong> the region.<br />
<strong>FUCHS</strong> Communication Service<br />
New photos from<br />
production<br />
Photos from different production<br />
areas are always needed for various<br />
publications or presentations. New<br />
professional photographs are now<br />
available and can be downloaded <strong>in</strong><br />
various resolutions depend<strong>in</strong>g on<br />
their <strong>in</strong>tended use. Photos can be<br />
accessed by click<strong>in</strong>g on the follow<strong>in</strong>g<br />
l<strong>in</strong>k: http://www.fuchs-oil.com/<br />
photogallery0.html<br />
Christmas card<br />
to be sent out<br />
Christmas is draw<strong>in</strong>g near and this<br />
year <strong>FUCHS</strong> will once aga<strong>in</strong> be offer<strong>in</strong>g<br />
its companies a tailormade<br />
representative Christmas card with<br />
the <strong>FUCHS</strong> logo. We have already<br />
checked for demand and are pleased<br />
to announce numerous orders. We<br />
plan to send Christmas cards out at<br />
the end of November.<br />
23