Fuchs Lubricants South Africa makes R250 million phase one investment in South Africa

Fuchs Lubricants South Africa, a subsidiary of Fuchs Petrolub SE in Germany, has announced an investment of just over R250 million in South Africa for the purchase of land and the development of the site for a warehouse, office complex and lubricants plant. The project duration is 17 months and is expected to be completed in October 2021.

Paul Deppe, MD of Fuchs Lubricants South Africa, said the project has been in planning for the last two years. “Fuchs’ business in South Africa and export into Africa is growing and we need to plan for future expansion.”

“We are concerned about the COVID-19 situation and the impact on our markets, but Fuchs has always focused on making long-term decisions and we are confident of the future strength of our business in Africa. Our capital investment decisions are therefore not based on current situations but on long-term strategies.”

Phase one of the project has been approved which is an investment of just over R250 million. Phase one includes the purchase of land, development of the site, construction of a new and much larger warehouse and an office complex.

“A new warehouse system will provide much needed storage space and modernisation of systems, and will enhance efficiencies. The project was approved in May, the land had already been purchased, and preliminary work has begun,” added Deppe

“The new project follows Fuchs Lubricants South Africa’s investment of R125 million in a grease plant expansion in Isando in 2018. Fuchs investment in a state-of-the-art plant to manufacture greases has made a significant contribution to our business,” he said.

DRA Global was selected by Fuchs to provide Engineering, Procurement and Construction Management (EPCM) services for the project. Industrial Logistic Systems has been appointed as warehouse consultant and ICM Architectural Studio as the architect.