Rationalisation continues at FUCHS
Rationalisation continues at FUCHS
Keyword FUCHS
FUCHS Petrolub AG, the globally-active, Mannheim-based lubricants Group, is pressing ahead with its rationalisation measures to prepare for the competitive environment of the future and return its French subsidiaries to their previous profitability. In France, where the FUCHS Group employed 467 people in mid-1998 and generates lubricant sales of over DM140 mn, a redundancy plan was presented which should reduce the workforce by 154. At present the plan is being negotiated and should have been completed by mid-November 1998. Natural fluctuation has already cut the number of employees by 30. The Group expects that a workforce of about 345 people will be sufficient. Personnel reductions at FUCHS' French subsidiaries affect all functional areas and together with other rationalisation measures should allow a return to positive results from 1999 on. In France, overall annual savings of DM9-12 mn are being targeted. First rationalisation measures are also expected at the new German joint venture, FUCHS DEA SCHMIERSTOFFE,which began operations on September 1, 1998. A variety of rationalisation opportunities are available from combined purchasing, plant specialisation, the optimisation of logistics and the exploitation of sales synergies. A decision about the future of the Eschweiler production facilities was to be made during the fourth quarter 1998. In Australia, a decision was taken to reduce the number of FUCHS plants from currently four to three. In its Polishing Division, FUCHS is preparing to merge its two German polishing paste plants to one in Haan/Germany where the present manufacturing capacity is being expanded. In the first half of 1998, the FUCHS group generated sales of DM791 mn (752), an operating result of DM51.3 mn (50.7) and after-tax profits of DM18.9 mn (19.5)and thus maintained its good profitability in spite of the crisis in Asia and falling lubricant demand. Full-year 1998 sales are expected to total DM 1.6 bn. The Group's global workforce was 4,064 by June 30, 1998.
