Germany-headquartered Fuchs, a top supplier of lubrication solutions, opened Thursday a EUR9 million ($9.7 million) factory in the southern coastal province of Ba Ria-Vung Tau.
The state-of-the-art plant will help Fuchs Vietnam meet growing demand for lubricants in this region and respond faster to local market demands, the company said in an announcement.
It said Fuchs’s portfolio in the country will be expanded and diversified to suit the strong growth potential of the Vietnamese market.
The two-hectare plant will be further expanded in its second phase, the company said.
Currently, it has an annual capacity of 20,000 tons of products, including automotive oils, industrial oils, metal working fluids and products for the mining industry. Production will start from the fourth quarter of this year.
"This is a historic moment for FUCHS Vietnam. We are celebrating the expansion of our global presence and the strengthening of our local capabilities here at the right time, as Vietnam is an emerging market with great growth potential and plays a key role in diversifying supply chains,” said Daniel Henn, managing director FUCHS Vietnam.
FUCHS debuted in Vietnam with the opening of a sales office in 2013. In 2021, the FUCHS Group acquired 70% of the lubricants business of STD & S Co., Ltd., a distributor of specialty lubricants based in Vietnam, and integrated the business with its subsidiary Fuchs Lubricants Vietnam Company Ltd.