HANOI – Germany’s Fuchs Lubricants Co. has rented 20,000 square meters of land in the Phu My 3 Specialized Industrial Park in Ba Ria-Vung Tau Province to build a new lubricating oil plant.
The projected plant will cost over US$6 million and turn out more than 6,000 cubic meters of lubricating oil per year, according to the park.
The German firm selected the site in the province due to the competitive price and its close proximity to the Cai Mep port terminal, which is handling 30% of Vietnam’s total containers for export. The land lease agreement lasts for 55 years.
Fuchs is one of the world’s leading lubricant producers, with 90 years of experience in the oil industry.
“Developing a new plant in Vietnam shows Fuchs’ trust and commitment to customers. Fuchs picked the Phu My 3 Specialized Industrial Park to build the facility due to the huge potential of Ba Ria-Vung Tau and the Cai Mep port,” said Mai Son, director of Fuchs Vietnam.
The land lease agreement helps boost the growth of the industrial sector in Ba Ria-Vung Tau Province and stimulates the land lease demand among multinational investors, said John Campbell, deputy director and head of the industrial service division at Savills Vietnam, which acts as a counselling unit for the agreement.