FUCHS to invest in new plant
FUCHS to invest in new plant – FUCHS Lubrificantes is advancing its growth strategy with the inauguration of the administrative offices of the new industrial plant in Sorocaba (SP). Expected to start production in the first half of 2025, the plant will be key to doubling the company’s share of the Brazilian market and strengthening its presence in Latin America.
The total investment in the first phase of the project will exceed R$ 220 million, with around R$ 70 million already made (€11 million) and a further R$ 150 million expected by the end of this phase, reinforcing the company’s commitment to the domestic market and its long-term strategy.
The Brazilian market moves around 1.4 million m³ of lubricants a year, driven by sectors such as the automotive, industrial, mining and agricultural sectors. With around 1.2% of this volume, the company is looking to increase its share with the new unit, taking advantage of technological advances and increased production capacity.
According to the Managing Director of FUCHS Lubrificantes do Brasil, Antonio Oliveira, Brazil and Latin America are strategic markets for the Group, especially in segments such as the food industry, mining, agriculture and the aftermarket, where there is still significant room for expansion. The country is currently among FUCHS’ ten largest markets in the world. “Brazil has enormous potential for growth for FUCHS, and we are focused on expanding our presence in strategic segments such as the food industry, which demands special solutions that are increasingly efficient, safe and sustainable. With the new plant, we will be able to consolidate our operations and better serve not only our partners in Brazil, but also the expanding markets in Latin America,” explains Oliveira.
Strategic expansion and increased production capacity
The investment in the new plant is part of FUCHS’ plan to expand its production and logistics capacity. With the new plant, the expectation is to double its share of the Brazilian market and serve customers in Latin America more efficiently.
The new plant, located on a 88,769 m² site, will have a built-up area of more than 19,500 m², as well as a tank park with a storage capacity of 3,600 m³. When finished, the new plant will be around five times larger than the current factory in Barueri, which has 3,860 m² of construction.
The first building, with more than 5,000 m², which currently houses a warehouse, office and filling area, went into operation in June 2022, with the start of the Distribution Center’s logistics operations. The offices began operations in 2024 and the first production cells, responsible for filling and labeling, will begin operating in 2025.
A second building, also covering more than 5,000 m², for the production of industrial and automotive lubricants, will be operational by the end of 2026, along with the tank farm and Quality Control (QC) laboratory.
Subsequently, a third building of approximately 3,500 m² will be built to manufacture greases, Food Grade products (food industry) and release agents for forging, as well as a specific building for flammables, also with an area of approximately 3,500 m². These stages will ensure a complete and gradual transfer of the operations currently carried out in Barueri.
By the end of 2024, the company would have 120 direct employees and around 30 indirect employees. By the end of the first phase of the expansion, the number of direct employees should exceed 150. When fully operational in 2030, the plant will have a production capacity of more than 50,000 tons per year, allowing the company to expand its product range and optimize production processes.
The plant will be responsible for producing the entire FUCHS lubricants range, which has a complete portfolio of more than 700 products for a wide range of sectors, such as industrial, automotive, mining, agriculture, energy, specialties, among others.
FUCHS to invest in new plant in privileged location
Sorocaba was chosen as the location for the new unit due to its strategic position, close to the main highways in the state of São Paulo and the company’s major clients. The local infrastructure facilitates the flow of production and improves distribution logistics to various regions of Brazil and neighboring countries.
The operation of the distribution center at the unit began in June 2022, serving the Brazilian and South American markets. This change has already produced satisfactory results in terms of the company’s logistics. According to company data, 67% of deliveries in 2024 were made within one day or less.
In addition to the impact on infrastructure and operational efficiency, the new FUCHS plant will make a significant contribution to the local economy. The plant is expected to generate direct and indirect jobs throughout the next phases of the project, strengthening the production chain and promoting economic development in the region.
Sustainability and technology
The commitment to sustainability is also reflected in the Sorocaba plant project. The facility will have solar energy generators, an effluent treatment system and reforestation initiatives in the area around the unit. As part of these actions, FUCHS has already planted 1,400 native trees in the region, involving employees in a significant environmental event.
In addition, the plant will have an optimized water reuse system, significantly reducing the consumption of natural resources, as well as a heating system with minimal emission levels. The concept of energy efficiency will also be applied to the unit’s lighting and air conditioning, making the operation more sustainable and in line with the guidelines of the company’s zero carbon emission program.
The new plant will also adopt modern lean manufacturing concepts and advanced automation, ensuring greater production efficiency and quality control. The plant will have digital production monitoring systems, high-precision weighing and flow measurement equipment, as well as industrial automation software that enables online process control.
The modernization will enable a more agile response to market demands, with faster production cycles and less waste of raw materials. The technology applied will help reduce operating costs and optimize the company’s logistics. “One of the company’s main goals is to build a plant that meets safety standards, especially with regard to fire and environmental safety, thus making it possible to zero carbon emissions,” Oliveira points out.
Outlook for the future
With more than 50 years of operations in Brazil, FUCHS has reaffirmed its position as one of the country’s leading lubricant manufacturers. In addition to the expected growth in Brazil, the Sorocaba plant will be a key support point for meeting growing demand in other Latin American countries.
According to Oliveira, with emerging markets expanding and an increase in the consumption of specialty lubricants, the new plant will allow FUCHS to act even more strategically. “With the plant, we will be able to better meet market demands and contribute to the development of the national and Latin American industry,” he concludes.
About FUCHS
FUCHS is a global group with German roots that has been developing, producing and selling lubricants and related specialties for more than 90 years for all areas of application and sectors. The group has more than 60 companies, employs almost 7,000 people and is the world’s leading independent supplier of lubricants. With a portfolio of more than 10,000 products and services, FUCHS serves more than 100,000 customers globally.
In Brazil for more than 50 years, FUCHS is recognized for the constant innovation and quality of its products, which serve automakers, automotive parts suppliers, mining and exploration, metallurgy, agriculture and forestry, aerospace, power generation, mechanical engineering, construction and transportation, as well as the steel, metallurgical and cement industries, the food industry, the glass production sector and
the foundry and forging industry, among others.
