Handsomeincreasefor LIQUI MOLY
Oiland additive specialistcloses 2016 with a salesrecord
February 2017 – LIQUI MOLY continuestogrow. The German oiland additive manufacturerincreaseditssalesby 11 per centto EUR 489 million in 2016, setting a newrecordas in theyearsbefore. “As an SME, we’ve not onlystooduptocompetitionfromthebigmultinationals, we’veactuallytakenmarketsharesawayfromthem,” says Ernst Prost, managingpartnerof LIQUI MOLY.
In 2016 LIQUI MOLY producedalmost 80,000 tonsoflubricantsandfilledmorethan 14 millioncans. The numberofemployeesincreasedby 60 to a total of 791. "They’rethekeytooursuccess,"says Ernst Prost. “Youcanonly do whatwe’vedonewithpeoplewhoaremotivatedtomovethecompanyforward on a day-to-daybasis.” The lowillnessfiguresandtraditionally minimal rate offluctuationareindicatorsof just howmuchstaffidentifywiththeiremployer – aswellasthefactthatmanychildrenof LIQUI MOLY staffgoontoworkforthecompany, too. Ernst Prost: “We’remorethan just a familybusiness. We’rethe LIQUI MOLY family.”
A keyfactor in 2016 was theheavilyfluctuatingoilprice, whichdoubledfromJanuarytoDecember. “This doesn'tmakeourbusinessanyeasier,”says Ernst Prost. “That’swhyourstrategyistopursuesustainable, qualitative growthratherthangofor a short-term flash-in-the-pan in termsofsalesfigures.” Sales in Germany increasedby 7 percentlastyear. This was morethanexpected: in itshomemarket, LIQUI MOLY has a large andlong-establishedshareofthemarketthatisdifficulttoexpand.
The exportsituation was better, withsalesincreasingby 15 percent. This was mainly due toleaps in sales in keymarkets such asthe USA (40 percentgrowth) and China (70 percentgrowth). And LIQUI MOLY brought off a turnaround in itsbiggestexportmarket – Russia: salestherecollapsed in 2015 due totheCrimeacrisis, theweakrubleandeconomicdecline. In 2016 figuresrecovered – in spiteofthecountry’songoingeconomicproblems.
LIQUI MOLY nowgeneratestwothirdsofitsrevenueabroad – andthetrendisupward, thanksto 51 employees in theexportdepartment. Ernst Prost: “Our Export Area Managers spend half theirworkinghours on sitewithourcustomers, supportingthem in implementingconceptsandstrategies. Andourbackofficeensuresthathundredsofcontainersaresent out allaroundtheworldeverymonth.”
LIQUI MOLY also doesverywell in ratherexotic countries such asIraq, Algeriaand Turkmenistan. Whilecompetitorstend not toinvestmuchenergy in thesemarkets, LIQUI MOLY makesthemostofthe potential there (see also interview with Ernst Prost).
An extensive programofinvestment in theoilfactory will becompletednextyear, but plansarealready in placeforthenext multi-million purchases: LIQUI MOLY isworking on introducing a newcompanysoftware, anditis also planningtomodernizeandautomateitsproductionfacilities. “Automation isnecessarytobeabletocopewiththeincreasingdemandandrelieveourstaffofphysicallyverystrenuouswork,” says Ernst Prost. “Anditwon’tinvolvecutting a singlejob: asfaraswe’reconcerned, peoplealwayscomebeforemachines.”
So all theindicationsarethatgrowth will continue. 14 newstaffhavebeenhiredsincethestartoftheyear, andsales in Januarywere 16 percentup on the same month last year. Ernst Prost isoptimistic: “We’llcrackthe half-billion mark in 2017.”
About LIQUI MOLY
With around 4,000 items, LIQUI MOLY offers a global, uniquely broad range of automotive chemicals: Motor oils and additives, greases and pastes, sprays and car care, glues and sealants. Founded in 1957, LIQUI MOLY develops and produces exclusively in Germany. There it is the undisputed market leader for additives and is repeatedly voted the best oil brand. The company led by Ernst Prost sells its products in more than 120 countries and generated 489m euros in sales in 2016.
For more information, please contact:
Peter Szarafinski
Jerg-Wieland-Str. 4
89081 Ulm-Lehr
Germany
Tel.: +49 7 31/14 20 189
Fax: +49 7 31/14 20 82