Lubezine Magazine Edition 27 December 2018
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Exclusive insight into Nigeria’s lubricants market
Nigeria’s diverse lubricants market
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The Lubritech division is meant to shift more focus on specialty lubricants as reported by MD, Fuchs Lubricants SA.
Fuchs Lubricants South Africa has established a Lubritech Division effective January 2018. This follows an announcement made by the lubricants manufacturer late last year. Fuchs Lubritech GmBH is part of Fuchs Petrolub SE, the world’s largest independent lubricant manufacturer, with more than 500 employees worldwide. Based in Kaiserslautern, Germany, Fuchs Lubritech operates flexibly and independently of its parent, with a specialized product range.
With the integration of the Lubritene and Lubrasa business in South Africa and Australia into Fuchs Lubricants South Africa in 2014, the company has determined that now is the opportune time to start a specialty lubricants division.
The Lubritene product range complemented the lubricants portfolio of Fuchs’ mining business. The Lubrasa activities extended the Fuchs product portfolio for food-grade applications in Southern Africa. These acquired businesses brought initial sales growth and now offers numerous prospects for further expansion in South Africa and the entire Southern African region, the company said.
“Combining these advantages with the longtime specialty business of Ceplattyn Open Gear Lubricants and Cassida Food Grade Lubricants, we will hold a strong market position in the Southern African region. At the same time we have a strong team in place to increase our market share substantially and to set up new market sectors,” says Bernhard Biehl, CEO of Fuchs Lubritech Group.
“Fuchs Lubricants South Africa has been purchasing products from Fuchs Lubritech for some time now but with the formation of a Lubritech Division within the company it means that we will focus much more on specialty lubricants,” says Paul Deppe, managing director of Fuchs Lubricants South Africa.
“The creation of the Lubritech Division shows our intent to further grow our mining and food lubricants business as well as develop new markets for Fuchs Lubritech products, for example, cement, wind, glass and sugar. We have a skilled team of sales and product specialists ready to support our customers.”
The new Lubritech Division in Southern Africa represents the next milestone in the course of the global development of special application lubricants within the Fuchs Group.
The Fitcar product monitors the car’s functionalities in real time enabling the driver to keep track of any problems arising from the engine, lubrication among other functionalities.
Royal Dutch Shell aims to install Fitbit-type monitors in a million cars this year as part of an expansion of its consumer-facing oil products business.The Anglo-Dutch group has tested its Fitcar product in about 3,000 vehicles in the United States, offering a transport equivalent to wearable health devices.
The monitor sends data from the car to apps on owners’ phones to alert them to emerging problems with engines, for example. In America, the devices have prompted drivers to visit Shell’s network of more than 2,000 service stations for an oil change or maintenance.
Shell is Europe’s biggest Oil and Gas Company, generating profits of $3.7 billion in the third quarter from a business spanning exploratory drilling to fuel retailing. Ben van Beurden, its chief executive, said in November last year that the company was increasing investment in its oil products business “to add materiality to this very differentiated and high-returns part of our portfolio, particularly in marketing”.
This includes its lubricants business, which makes 2,500 oil products and has an 11 per cent market share around the world.
“One in nine machines, whether a car or bus or industry, is protected by Shell lubricants,” HuibertVigeveno, executive vice-president of its global commercial division, which comprises lubricants, aviation fuels and marketing, said, adding that he saw strong growth potential for the group’s premium engine lubricants products, which promise to help to improve vehicle efficiency.
The Fitcar offering is one way that Shell aims to expand its market share, initially through its Jiffy Lube service station subsidiary in the US. If successful, it could roll the product out to other markets, including Britain.
The technology works using a device costing between $50 and $100 that plugs into the car’s diagnostics port, usually located below the dashboard. This sends data to an app. Shell said that it could help to save customers money by identifying problems before the car breaks down.
“The proposition is you can have an app and you’ll be able to see what’s going on, how many kilometres you are driving, how much fuel you are using, how your lubrication is going”, added Vigeveno.
He suggested that there was particular appetite for such products among younger drivers, who were “not as closely affiliated with their cars as maybe the generation before”.
