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Saudis look to sell Fuchs JV stake as Germans invest in Australia

Fuchs Petrolub is at the centre of two pieces of investment news in the Middle East and Australia.

In Saudi Arabia, two thirds of the Alhamrani-Fuchs Petroleum joint venture may be put up for sale by the family-owned Alhamrani Group - an automotive, financial and construction conglomerate.

Although neither organisation was prepared to comment, it would appear that the Saudi organisation is looking to offload its majority share for between $400-500m, with interest in the sale largely coming from Middle Eastern finance groups. A deal may be imminent, although Fuchs retains the right of veto on any prospective purchaser.

The joint venture was formed in 1995 to operate a 95,000 metric tonne lubes blending plant in Yanbu, supplying 30% of Saudi's domestic well as exporting to other countries in the region.  It is the largest plant of its kind in the Middle East and Africa.

Meanwhile Fuchs is set to spend $5.5m on its Australian operations as part of its global investment programme.  Much of the money will go towards expansion of its Melbourne facility to add a new Lubricant Laboratory and Technical Centre.  This will boost the technical capability of the site for regional lubes formulation and marketing.

Part of the funding will also be invested in a major redevelopment of Fuchs' manufacturing operation in Newcastle, north of Sydney.

Tags: Corporate News, Europe, Fuchs, Middle East

Published 11th June, 2012


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