Recent reports show that Fuchs Lubricants’ stock market valuation is once again reaching new highs, repeating the same achievement it has made three other times since 2017.
Statistics of past years reveal that the German lubricant specialist has exceeded the 50 euros share ceiling on three previous occasions, only to drop to a low of 30 euros per share. While the COVID-19 pandemic and the warfare in Ukraine can account for such volatility, Fuchs has managed to remain resilient in the hard recession that has hit the Rhine region in recent years.
Based in the city of Mannheim, the company has been controlled for three generations by the Fuchs family and is now the leading independent lubricant produce in the world. This puts the lubrication expert ahead of some of the largest industry operators including Shell, Mobil, BP, Sinopec, Total, PetroChina and Chevron. However, its immediate rivals are Ergon and Valvoline, the former US company that is now owned by Saudi Aramco.
Currently, three quarters of Fuchs’ sales are generated internationally, with around a 25 per cent coming from China. Its industrial lubricants segment produces 56 per cent of its total business, while its automotive segment accounts for the other 44 per cent.
While some players in the lubricant sector can struggle to experience growth, Fuchs has never had a problem prospering due to its custom lubrication products and well-considered acquisition strategy.
Last year, the company acquired fellow German company Lubcon, as well as Strub & Co of Switzerland.
