Ulm-based automotive chemical specialist LIQUI MOLY secures integral production capacity by acquiring MEGUIN GmbH & Co KG Mineralölwerke in Saarland.
Business development at LIQUI MOLY GmbH is very atypical for the industry and is in almost direct opposition to the current market situation. At the end of 2005, sales had increased by 17 percent as compared to 2004 and were again up by +20 percent at the end of May 2006 with respect to the previous year at this time. LIQUI MOLY Managing Director Ernst Prost: 'This somewhat extreme growth requires action. Today, it is all about securing raw materials and production capacity in the long term in order to ensure the company's independence. In total, we estimate overall sales of Euro 200 million for the current year (Euro 125 million from LIQUI MOLY and 75 million from Meguin). In the next 10 years, we want to reach combined global sales of Euro 1 billion with both companies; there is nothing to hold us back. LIQUI MOLY and Meguin represent two absolutely top brands with impressive sales in Germany and in 80 other countries. Everywhere friction occurs, our lubricants are needed. Now, with Meguin on our side, we have also secured an excellent supply basis. This recipe for success, comprising brand, sales, top quality and lubricant factories in the markets can be multiplied and internationalized, which is why I do not see anything that could limit our growth'.
Founded in 1847 and headquartered in Saarlouis, MEGUIN has been one of LIQUI MOLY's most important development partners and suppliers for decades. The company's know-how and capabilities are evidenced by its uncompromisingly wide and varied line of lubricants produced for their Swabian partner for marketing around the globe. Almost 80 percent of annual lubricant production capacity (approx. 60,000 tons) was recently delivered to the Ulm-based company. Being a pure production specialist without any real marketing strength, however, MEGUIN saw itself as facing the full onset of global competition. It therefore came as no surprise that the employees' committee and all 130 employees of Meguin welcomed the announcement that the firm would be sold to LIQUI MOLY GmbH. Having a direct connection to Meguin's largest customer now ensures that full production capacity will be acquired by Liqui Moly in the long term, while also securing the production location and jobs in Saarlouis. A state-of-the-art filling station for 1 and 5 liter oil containers already has been invested in - an investment that will additionally increase filling capacity by 50 percent. Once again LIQUI MOLY Managing Director Ernst Prost, who will also be assuming the management of MEGUIN GmbH & Co. KG starting with immediate effect: 'The acquisition of Meguin is a logical reflection of our business development and our previous customer/supplier relationship. Now, what belongs together grows together. This acquisition, however, is just the beginning. We are rapidly growing on a global scale and are seriously thinking about acquiring additional production operations in other important sales regions such as China (where we already have a joint venture with a bottler), India, the United States and Eastern Europe“. MEGUIN included, LIQUI MOLY now employs over 330 associates and, with its rapid international growth, the company is not only able to safeguard these jobs, but will continue to open new positions with every year that goes by.