Shell and Bogdan Auto, one of the biggest car dealers in Ukraine, signed a lube supply contract.
Under the deal, Shell Oil Products Ukraine will supply Bogdan Auto more than 300,000 liters of its flagship motor oil brand Helix during the next three years. Beginning in June 2013, all of Bogdan Autos service stations began using Shell lubricants for their customers routine car maintenance checkups, according to the oil majors recent announcement.
Shells 180,000 metric tons per year lubricants blending plant located in Tver, Russia, supplies the Helix passenger car motor oil line. The plant commenced production in October last year. Bogdan Auto assessed the quality of our products and has initiated signing of a long-term agreement with us, said Cyril Sinyavskiy, the companys light vehicle lube sales manager in Ukraine.
This partnership is a unique possibility for both companies to unite their professional experience and knowledge for business development, said Larisa Yakubovskaya, general manager of Bogdan Auto.
Kiev-based Bogdan operates a network of 30 car stores and service stations across the country. It is an official dealer of brands from a variety of countries, such as Japans Subaru, South Koreas Hyundai, Czech Republics Skoda, Chinas Great Wall and Russias Lada. It also sells commercial vehicles made by Hyundai and Ukrainian-made buses by Bogdan.
Ukraine is the seventh largest lubricant market in Europe with estimated demand of 300,000-350,000 tons of finished lubes annually, according to a presentation by Ukrainian Cherkassy Autochemistry plant owner Mikhail Vashurkin at the 2011 WRA Base Oils and Lubricants in Russia and the CIS conference.