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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

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