ExxonMobil, Ampol Ally in Australia

Share

ExxonMobil, Ampol Ally in Australia
Traffic on the Warringah Freeway in Sydney, New South Wales, Australia. © Taras Vyshnya / stock.adobe.com

Ampol will blend, distribute and market Mobil lubricants in Australia under a marketing alliance with ExxonMobil announced yesterday.

According to a news release, the manufacturing, distribution and marketing conversion to Mobil lubricants will commence in 2021 and take approximately 12 months to complete.

The alliance calls for Ampol to supply Mobil lubricants to retail and business customers through a combination of direct and distributor channels. The news release said the alliance will be supported by Ampol’s strategic infrastructure positions and supply chain expertise, with its local production and import capabilities to support the delivery of Mobil‘s lubricants to the Australian market.

“Our customers know us for our extensive knowledge and capabilities in sourcing and manufacturing trusted, high-quality lubricants,” Ampol Managing Director and CEO Matthew Halliday said in a news release. “We explored several options to find the right lubricant technology for our customers and believe that Mobil lubricants are a perfect fit. This alliance forms part of the revitalization of Ampol and supports our commitment to continuing to evolve our lubricants offering to support the changing needs of our customers.”

The ExxonMobil Australia group has operated in Australia since 1895.

The Ampol brand was phased out in Australia after it merged with Caltex in 1995. Last December, Caltex Australia announced it would change its company name to Ampol, subject to a shareholder vote in May this year. This year it also began rebranding its 2,000-plus service station chain and oil products to Ampol, a brand it has owned since the 1995 merger.

Caltex Australia said it made the plans to rebrand its operations after Chevron notified the company that it cannot use the Caltex brand on its lubricants and grease products once an existing licensing agreement between the two companies ends. The license agreement provided a three-year transition period, consisting of a six-month notice period and 30-month work-out period, the company stated last December.

Caltex was the brand name and the licensee for Chevron products in Australia, including refined fuels and lubricants. Chevron sold its 50 percent stake in Caltex Australia in 2015.

Shortly afterwards, Caltex broke up with BP Australia, dissolving a 15-year lubricant blending joint venture known as Australian Lubricant Manufacturing Co. After the split, Caltex retained a blending plant and base oil storage facility at Lytton in Brisbane as its home base for lubricants and grease in Australia. It also has distribution and warehousing facilities throughout the country in Sydney, Melbourne and Perth.

In November 2019, Canadian convenience store operator Alimentation Couche-Tard Inc. made a takeover offer of $8.6 billion (U.S. $5.8 billion) for Caltex Australia, one of Australia’s biggest lubricant and grease suppliers. In April this year Alimentation Couche-Tard put on hold plans for a revised acquisition proposal, citing economic impacts and uncertainty brought about by the COVID-19 pandemic. Couche-Tard doesn’t operate any lube blending facilities.

Related Topics

Asia-Pacific    Australia    Business    Finished Lubricants    Market Sectors    Region    Sales & Marketing