In a bid to strengthen its presence in the Russian lubricants market, Gazprom Neft-SM recently introduced a new line of automotive lubes using its nationally established Gazpromneft brand.
The brand, previously used only for industrial oils, has been expanded to synthetic, semi-synthetic, and mineral automotive lubes for passenger cars and light trucks with gasoline and diesel engines, as well as to gear oils, greases and specialty fluids. Gazprom Neft-SM is the lubricants arm of Russian oil major Gazprom Neft.
Called a dual-branding strategy, it is an important phase in the realization of the companys marketing strategy, general director Alexandar Truhan told Lube Report. In the premium market segment we have our G-Energy brand, and in the mass consumption segment we have the Gazpromneft brand.
A similar model is employed in Grazprom Nefts gasoline marketing, where the G-Drive brand is sold in the premium segment, while the Gazpromneft-branded gasoline is meant for mass consumption, according to Truhan. Certainly, we expect great [benefits] from Gazpromnefts brand popularity. Our company is among the top three lubricant marketers in Russia and is also trying to establish a foothold on the international markets.
At the moment there is a trend taking place in the Russian automotive market where popular and strong brands are growing, he continued. This is especially true for commercial vehicle lubricants.
The company also recently introduced G-Energy Racing, a specialized lube brand for professional racing and sport cars.
Lubricants business development and expansion of our product portfolio are the companys main objective, said Anatoly Cherner, the companys deputy general director for refinery, logistics and distribution. Gazprom today owns high-end [lubricants] production facilities in Russia and in Italy. Based on the international practice, we design high-quality, up-to-date, affordable and competitive products in Russia. The company also operates a lubricants plant in Serbia.
Gazpromneft automotive oils are available off-the-shelf at auto accessories stores, and gas and service stations across Russia and a few more countries. We are covering around 7,000 retail points from [the Russian Western enclave of] Kaliningrad to Vladivostok. We also expect that this brand will be easily accepted in the traditional markets of Ukraine, Belarus and Kazakhstan as well as in some countries of Eastern Europe and Middle East, Truhan said.
The products meet the necessary international quality standards and are approved by leading automotive original equipment manufacturers, the company claims. More than 60 types of lubes are released under the Gazpromneft brand.
The oils are manufactured at Gazprom Neft-SMs Omsk Lubricant Plant located at its Omsk refinery in Western Siberia. The refinery includes a 240,000 metric tons per year API Group I base oil plant and a 70,000 t/y blending and packaging unit where construction work for expansion is taking place at the moment. The high precision, low-tonnage blending unit will be launched at the Omsk plant later this year and will manufacture 110,000 tons of lubricants and fluids annually under the latest technology that was [previously used] only at Gazprom Neft-SMs Italian site, the company said.
After the expansion is done, the plants capacity will reach 180,000 t/y of finished products.
After Lukoil and Rosneft, Gazprom Neft is the third largest lubricants marketer in Russia. The companys total combined lubricants and base oil production in 2011 amounted to 409,000 metric tons, and it held 11 percent of Russias lubricants market, according to VNII NP, the Moscow-based All Russia Research Institute of Oil Refining.