GP Broadens Lube Brand Footprint


India-based GP Petroleums Ltd. on Wednesday announced an agreement with lubricant producer Mag Lube to manufacture and market GPs Ipol lubricants in the Middle East and Africa. The agreement marks the next step in GP Globals plan to take its Ipol brand global and expand production capacity.

The new distribution deal with Mag Lube will increase GP Petroleums production by two tons per year through Middle East, Africa and markets farther east, mainly in the automotive and industrial lubricant segments, GP stated in a press release.

The agreement will help GP Global reach its target of producing 250,000 metric tons of lubricants per year by 2021, a shift from its previous goal of 220,000 tons per year by 2022 stated in April. Mag Lube will pay GP a royalty fee for access to the formulation technology and the Ipol brand.

GP Global has also hinted at more acquisitions in the future, and plans both organic and inorganic growth.

GP Petroleums, part of United Arab Emirates-based GP Global, acquired a majority stake in Mag Lube in April for an undisclosed amount. Established in 2013, the company distributes to more than 50 countries in the Middle East and Africa. The Emirati lube manufacturer operates a blending facility with capacity of 60,000 metric tons per year capacity located in the National Industrial Park in Jebel Ali, UAE.

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