Uzbekistan oil and gas company Saneg acquired CGC Lubricants Italy S.p.A., an Italian lube maker, to expand its footprint on the European markets and strengthen its position as one of the leading lube producers in the region of Central Asia, the company said last week.
Terms were not disclosed.
Saneg, which is an abbreviation of Sanoat Energetika Guruhi, is the largest privately owned oil and gas company in Uzbekistan. CGC’s 27,000 tons per year lube plant, located in Bari, on Italy’s southern Adriatic coast, has capacity to produce 24,000 t/y of finished automotive and industrial lubricants and 3,000 t/y of greases.
Under the deal, CGC Lubricants Italy was renamed to Saneg Oil Italy S.p.A., while Saneg’s lubricant arm Seg Motol started a strategic cooperation with the Italian lube maker. The new company will produce lubricants under the Saneg brand.
“The plant will serve as a strategic supplier of high-tech commercial lubricants to Fergana refinery, ensuring a seamless supply of essential lubricants to the Uzbek market and beyond,” Saneg stated in a Feb. 14 news release.
The refinery in Fergana is site of a 500,000 t/y API Group I base oil plant.
“We plan to develop the Saneg brand sales in both Italy and Uzbekistan,” a Seg Motol’s official told Lube Report on Monday.
Saneg also plans to fully localize the production of CGC in Uzbekistan, further strengthening its domestic manufacturing base, the official added.
The company also said that this deal gives it full access to the Italian and European lubricant markets. CGC’s distribution network primarily reaches countries in Southern Europe, such as Greece, Italy, Spain and Portugal. It also has interest in the North Africa market.
“The synergy between the two companies will not only expand Saneg’s reach into the European market but also solidify its position as a technological leader in the lubricants industry in Uzbekistan and in Central Asia,” Bakhtiyor Fazilov, the chairman of the company’s management board, stated.
The Set Motol official said that the new company portfolio also includes Seg Motol branded products produced at the Fergana refinery.
CGC has an office in Rome with 11 employees. The plant in Bari includes a fully accredited laboratory and is operated by 19 employees. The plant features a highly automated production process, ensuring efficiency and consistency in the manufacturing of over 200 types of lubricants, Saneg stated. Its portfolio of products includes automotive and industrial lubricants, as well as greases.