Partnership

Fuchs Busy in Iran

Jutta Jacobs is the sales and export manager of FUCHS LUBRITECH. While majoring in commerce and economics, Jacobs diversified her skills by studying English, French and Spanish. Interested mainly in the export business from the beginning, she joined a company known today as FUCHS LUBRITECH. This is her kind of job. “Working with the overseas markets was my major interest and that was exactly what I found at FUCHS LUBRITECH. After 25 years in this business, I still find it fascinating because you’ll never know what the next day will bring. Moreover, I love travelling which is always a part of my job. It would be boring to do everything from behind the desk”. In her fourth visit to Iran, Jutta Jacobs gave the following update:

FUCHS LUBRITECH is a subsidiary of Fuchs Headquarters for special lubricants, coating technology and services. The company is currently supplying specialties to more than 60 countries in five continents. People in many industrial plants across Iran know our products very well.
Cooperating with the people abroad, you have to deal with a wide range of issues. Just selling a product can be a very easy job. You receive an order, you supply the demand and get paid. But what if the customer is not completely satisfied? Therefore, at FUCHS LUBRITECH we don’t see our deals as a matter of buy-and-sell. Avoiding a one-way business, we establish a regular cooperation that we believe should exist between the end-user and the supplier. This is what I refer to as a win-win situation. You have to travel, get to know you customer up close, build a better relationship, discuss the problems personally and help them solve general and technical problems.
It is highly economical to use the right lubricant. It remarkably extends the life of machinery which means that our customers will have to spend less. That is the philosophy of our company.
Iran was one of our most-appreciated markets. There was a perfect relationship and trust between the company and its Iranian customers. They were satisfied with the product that they purchased from us and we were granting them the free-of-charge technical service which every customer is entitled to get at least once a year. We experienced a bit of a hard time when some import restrictions came into effect in early 1990s, which I well understand from the Iranian point of view. Those customers who knew about the quality and performance of Fuchs products had no way of bringing them into the country. This situation got worsened when some substandard products were faked as original Fuchs lubricants. Expecting a high-quality product for their high-standard machinery, the customers were disappointed to find that the lubricant showed a poor performance. This was a very alarming situation which was out of our control. I personally came in and this problem was solved. Today, only original Fuchs products are supplied to the Iranian market.
Fortunately, Fuchs is well-known and trusted by the industrial community of Iran. The product speaks for itself. Today, I am in Iran to assert that as the supplier of Ceyplattyn, FUCHS LUBRITECH has overcome the past problems and is prepared for expansion. The industrial community of Iran acknowledges the fact that Fuchs partner in Iran is MMI and standards of our products are as high as ever. MMI supplies the genuine brand Fuchs products. I am pleased to see that customers have resumed their trust in Fuchs. Meanwhile, all LUBRITECH customers do have the choice to either import products directly from Germany or file orders through our exclusive contractor MMI in Iran.
This trip gives me the opportunity to visit Sarcheshmeh Copper Plant following an invitation after the Fuchs-MMI seminar in Iran. This plant has suffered a damage caused by use of miscellaneous lubricants. I will be accompanied by LUBRITECH specialists who will perform an overall evaluation of the status of all the machinery and take a look at fields where our products can be applied. Considering the data that we will collect, Fuchs will recommend what is essential. A technician will be sent for a necessary period to give a free-of-charge repair service.
Our technical support and advice will lead to a reduced consumption of lubricants. This means lower profitability for us, but that is not a priority. As I mentioned, FUCHS LUBRITECH looks at this as a win-win situation.
Although our next moves largely depend on the Iranian market and the Ministry of Industries, but we want to have an even closer relationship with MMI. It is a pleasure to be back in this market to rebuild and even improve our relationship with the industrial community of Iran. Of all the countries I am responsible for as FUCHS LUBRITECH sales manager, Iran is the number one.

Greater Availability

Fuchs aims to create a balance between product supply and technical support. Our target here is transfer of technology

Dr. Lutz Lindemann, Chief Executive, FUCHS PETROLUB AG

The visiting Fuchs team includes a technical specialist for lubrication in copper plants, a specialist for technical oils and technicians for special greases. At this stage, it is necessary to make a detailed evaluation of what type of lubricant is required, what supports should be given and what kind of technical assistance must accompany our products.
In particular, Sarcheshmeh Copper Plant that we are dealing with is a fairly modern one with advanced equipment. Accordingly, modern and highly developed products are needed to protect the facilities. A purpose of our visit is to determine what types of products are needed. This would be the first phase to identify the product range in detail to decide about the most suitable lubricant that addresses the needs. This phase will also enable us to decide about the basic structure of our cooperation.
This is the first step in addressing only one branch of industry in Iran. The next step after copper will be to expand our cooperation and services to other branches of industry such as steel and cement. The overall objective is to move step by step, explore the possibilities and needs of the market, and then adopt the right approach and identify the right kind of product.
The target is transfer of technology. Fuchs is going to offer special training to Iranian technicians, enabling them support the products especially those needed and manufactured here. We must ensure that once the product is manufactured here, the know-how exists in Iran. That means there should no longer be a need for outside assistance. Fuchs is considering one year for the transfer of technology. During this period, knowledge and experience will be relayed to Iranian specialists. This will be a continuous process.
In next stages, links will be established with other industries who need other types of lubricants and therefore, a greater variety of lubricants will have to be supplied. As a result, new training courses will have to be held to support that specific field of industry. No cooperation will last long unless it offers knowledge and know-how. These are fundamentals for maintaining a good relationship.
We see Iran as the heart of a larger market and hopefully, it will serve as the center of our regional operations. Manufacturing facilities and technology can best be used here for the export of products to some neighboring countries in the region. In addition, the revenues from our future export business will support domestic activities of Fuchs-MMI.
Some industrial plants in Iran are operating with a technology that was developed years ago. The lubricants imported and used by Iranian copper, steel, cement and petrochemical industries do not fit very well to their needs. The purpose is to bridge the gap between the technology now used in Iran and the technology we would like to transfer. Through its LUBRITECH subsidiary, Fuchs has been importing some tailor-made products for about three years now. Mention here must be made of Ceplattyn which was introduced by LUBRITECH for open gear sections to extend the life of machinery.
However, only to export specialties is not enough. You have to create a balance between product supply and technical support. You have to be available. Although the market is shrinking, facts and figures show that Fuchs enjoyed an increase in revenues during 1999. This is owing to the high quality of products supported by technical assistance and commitment. Without technical support no customer would be willing to continue cooperation with a supplier. High-quality product and technical support together make a winning combination.
For further availability of Fuchs products and services, we have filed an application with the Iranian Ministry of Industries which is expected to be confirmed shortly. It includes the location, an outline of the plant, the production and assembly line, and the products.
With its abundant natural resources, skilled manpower and unique geographical situation, Iran is positioned to take economic leadership of the region in the next 5 to 10 years.

A Rewarding Job

In about a decade, I see Iran as a major industrial country with sizable non-oil exports

Ahsan Rashid, President, FUCHS OIL MIDDLE EAST LTD.

Once again Fuchs team is in Iran to meet with the officials of the Ministry of Industries respond to their further inquiries, and at the same time, show the commitment of its maintenance unit.
Taking proper care of machinery has always paid as a very rewarding job especially given the fact that metal is far more expensive than oil. Because of certain circumstances, the Iranian oil industry has not kept up with the latest technological developments. One of our major concerns is to transfer this advanced technology to Iran so we can jointly produce the right quality of products domestically. This will preserve the Iranian industry which is the biggest in the region.
Fuchs-MMI joint venture is expected to be approved by the Iranian authorities to allows move forward with our objectives. Following a seminar held by Fuchs-MMI, more industrialists are seeking advice from us and Fuchs technical experts are here to inspect the facilities, check up on the machinery and make necessary recommendations.
It is worth mentioning that Fuchs is not only the world leader in manufacturing a wide variety of tailor-made lubricants, it also far ahead of the competition in producing environment-friendly products. Very recently the company introduced an engine oil which is completely biodegradable. It is the highest quality standard today. In addition, it brings about an enormous amount of engine and fuel efficiency.
The Fuchs plant to be established here will not only make maximum use of local facilities and personnel to create jobs, it will also transfer the latest technology. Consequently, the price will be a lot lower than the imported Fuchs products. A comparatively lower price is the main advantage of local manufacturing.
Now that the world is becoming like one global family and Iran is showing willingness to integrate further into the global economy, it is up to the Iranian Law for Attraction and Protection of Foreign Investment to ensure the investors that their investments won’t be nationalized without proper compensation.
Iran enjoys mature democracy, efficient leadership and skilled human resources. All the necessary ingredients are there. In about a decade, I see Iran as a major industrial country with sizable non-oil exports.

FUCHS-MMI
1st Flr., 305 Vahid Dastgerdi St.,
Africa Blvd., Tehran – IRAN
Tel: (+98 21) 877 55 50
Fax: (+98 21) 879 05 00