Fuchs inaugurates lubricant plant in Bekasi

The Jakarta Post, Jakarta

PT Fuchs Indonesia, a wholly-owned subsidiary of Fuchs Petrolub AG of Germany, inaugurated the operation of its lubricant blending plant on Monday in Bekasi, just east of Jakarta.

President director Nugraha Kartasasmita told a press conference that the plant, established in Bekasi, West Java, with a total investment of Rp 48 billion (US$5.33 million), had a designed capacity of up to 120,000 tons per year.

"But during the first year, we will operate the plant at about 35 percent of capacity, with an estimated progression of 20 percent in each of the following years," he said.

The plant, which started up operation last October, would initially concentrate its activities on the production of automotive lubricants, he said, adding that the plant would also produce industrial lubes, metalworking fluid and other specialty fluids in the coming years.

"In the first year, we hope to grab a 5 percent share of the automotive lubricant market, which is now dominated by Pertamina, the state-owned oil company," he said.

Demand for lubricants in Indonesia, according to Fuchs Petrolub's chief executive officer, Manfred Fuchs, reaches about 700 kiloliters a year.

"As demand for lubricants grows by about 3 percent per year in Indonesia, we are optimistic about making a long-term investment in this country," he said.

He said the Bekasi plant was Fuchs Petrolub's 14th lubricant blending plant to open in the Asia-Pacific region after those in China, Australia, South Korea, Japan, Singapore, the Philippines, India and Bangladesh.

He said Fuchs Indonesia's lubricants were environmentally friendly because they were biodegradable.

Nugraha said Fuchs Indonesia's products were made suitable for the climate and heat in the country.