Fuchs Group’s unabated business growth continued with a new joint venture in Peru. The German independent lubricant company announced it has formed a new entity called Fuchs Peru with brothers Arnaldo and Flavio Rubini, owners of Fuchs’ distributor in Peru, Remsac.
As part of this agreement, Remsac’s lubricants business and workforce of 12 were transferred to Fuchs Peru. Fuchs Group holds 60% of the new entity while the Rubinis retain the remaining 40%.
Remsac exports to Chile, Colombia, Ecuador and Bolivia, as well as distribution of its specialty lubricants in locally.
The joint venture will enable Fuchs to raise brand awareness in the market, which accommodates companies such as Castrol, Exxon and Terpel. Fuchs is also looking to grow in segments such as cement, mining and food and beverage.
Competition in the market is heating up. Last year, BP subsidiary Castro, said it is considering building local production capacity. Finished lubricant demand in Latin America is predicted to reach 4.5 million metric tons by 2029, according to industry consultancy Kline & Co. Peru, alongside Brazil, Mexico, Colombia and Chile are the main contributors to this growth.