The company attributed the growth to broad improvement in sales and continuing expansion in China and other countries.
Get alerts when new Sustainability Blog articles are available.
Our Genesis and other branded automotive, industrial and marine oil products reached 585,000 tons in 2017, or a 14 percent increase compared to the year before, Lukoil stated in its annual report for 2017 This growth is helped by the favorable conditions in the national lubricant market, our expansion [in Russia] and in the foreign markets.
Lukoil is Russias largest lubricant maker. In 2017 it was responsible for 45 percent of the countrys combined output of base oils and finished lubricants, which was 1.1 million tons.
The company said its sales volumes in Russia continue to grow and that it now has factory fill deals with virtually all foreign automakers operating in Russia. These foreign automakers include Volkswagen, Ford, Renault, Man and many others, the company said in the annual report. We increased the number of approvals by international industrial and automotive OEMs – Genesis became the first Russian engine oil product with VWs approval [for] 504 00/507 00, the most stringent, large-scale modern specification of the German automaker.
LLK claimed that it now supplies 12 percent of the global marine oil demand, up from 10 percent in 2016.
Last year, Volgograd-based Intesmo, a grease joint venture between Lukoil and state-owned Russian Railways, reported a 25 percent growth in production volume, while LLK-Naftan, a Russo-Belarus lubricant additives maker, increased its production by 20 percent.
In 2017 we modernized our grease testing center where we released 200 testing methods and developed and produced 115 types of grease products, Lukoil said.
In all, the company now offers a portfolio range of over 700 products.
Lukoil this year is finishing construction of its 100,000-tons-per-year lubricant blending plant in Almaty, in southeast Kazakhstan. The plant, scheduled to go online by the end of this year or in early 2019, will supply the Central Asian and Chinese markets.
Lukoils main production takes place at its refineries in Perm and Volgograd where it produces Group I and Group III+ base oils and finished lubricants. Combined production at those sites reached 998,000 tons in 2017.
Additionally it operates five large stand-alone blending plants in Tyumen, Russia, Austria, Finland, Romania and Turkey.
In 2017 these five plants produced 128,000 tons of finished lubricants total.
The company markets products in more than 100 countries through subsidiaries in Europe, the Middle East, Central Asia and China. Last year it continued its expansion in the Chinese market and started to sell products in Mexico.