German-headquatered lubricant manufacturer Fuchs Group held an inauguration ceremony for its new plant in Ba Ria-Vung Tau on September 14, marking its deeper penetration into the Vietnamese market.
With investment capital of €9 million ($9.6 million), the high-tech plant will allow Fuchs Vietnam to meet the rising demand for lubricants in the region. In addition, the range of Fuchs products in Vietnam will be expanded and diversified to suit the strong growth potential of the Vietnamese market.
Covering an area of 20,000 square metres, the plant consists of offices, a laboratory, production and filling facilities, and a warehouse. Currently, the plant has a capacity of 20,000 tonnes per year, which can be expanded in the second construction phase.
Under the plan, the factory will start production in the fourth quarter of 2023. The high-performance production portfolio includes automotive oils, industrial oils, metal working fluids and products for the mining industry.
Daniel Henn, managing director of Fuchs Vietnam, said, “This is an historic moment for Fuchs as we celebrate the expansion of our global presence and the strengthening of our local capabilities, just as Vietnam is showing great growth potential as an emerging market and playing a key role in diversifying supply chains.”
According to a report by Ken Research, Vietnam's lubricant market is expected to generate VND41 trillion ($1.69 billion) in 2026 owing to the rise in demand for lubricants in both the industrial and automotive sectors. More market players are expected to enter the lubricant sector independently or through partnerships to cater to this increased demand. Also, the direct sales of lubricants in Vietnam are expected to grow as companies start focusing on increasing their margins by cutting out middlemen.
Fuchs has been active in Vietnam since 2013. In 2021, the group acquired 70 per cent of the lubricants business of STD & S Co., Ltd., a distributor of speciality lubricants based in Vietnam. The business was integrated into its Vietnamese subsidiary Fuchs Lubricant Vietnam, in which the owner of STD & S Co., Ltd. holds a 30 per cent share.
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