African Fuels & Lubricants Manufacturing Ltd. of the Tristar Group will blend, distribute and market Chevron Brands International LLC’s Caltex lubricants in six East African countries under a long-term license agreement announced Sept. 15.
The East African lubricants agreement covers the consumer, commercial and industrial sectors of Kenya, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of the Congo. “In the initial phase, AML will blend automotive and industrial lubricants which cater to the East African markets,” Abhijit Sarmah, general manager of Africa Fuels & Lubricants Ltd., told Lube Report. AML has entered into a long term agreement with an ISO certified plant Kenya to blend the Caltex branded lubricants, Sarmah added.
Caltex branded lubricants have been available in East African countries since 2013 through a distributor agreement with Tristar’s Africa Fuels & Lubricants Ltd. “Chevron has a history in East Africa spanning seven decades and we have collaborated with AFAL since 2013,” Douglas Rankine, Chevron Brands International’s general manager for Middle East and Africa – fuels and lubricants, said in a press release.
The success of the existing license agreement and growing demand for lubricants in the region were major reasons for building the relationship further between Tristar and Chevron, and Tanzania will be a new market for AFAL Manufacturing, known as AML.
Under the new scope, Chevron will provide its technology, and AML will blend, market and distribute Caltex branded lubricants through its network. “This new agreement also includes lubricants blending options for future expansion,” Rankine said.
AML expressed confidence that the agreement will enable the Caltex brand to gain larger market share in East Africa by capitalizing on cost benefits and synergies of local blending. “We are confident that local blending is a move in the right direction for this business to remain competitive, and we will spare no effort to strengthen the position of the Caltex brand in East Africa,” Tristar Group CEO Eugene Mayne said.
Depending upon the area, automotive aftermarket, commercial fleet, mining and power generation are the main segments which drive the lubricants demand in East Africa, according to Sarmah.
Tristar, based in Dubai, United Arab Emirates, is a global business that offers end-to-end fuel logistics solutions to clients that include international and national oil companies and intergovernmental organizations.