Lukoil Lubes Expand in Russia, Europe

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Russian lubricant marketer Lukoil launched its key European brand Genesis in Russia last week, reaffirming its grip on the countrys automotive lubes market.

The fully synthetic Lukoil Genesis will first appear at a few authorized franchised car service stations, with the possibility of soon expanding its presence into many retail sales points across Russia. The brand will also be supplied to Rolf, a French Renault car dealership in Saint Petersburg, as well as to Uz-Daewoo, official dealer of Korean Nexia and Matiz cars in Russia.

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So far we have made deals with 40 franchised workshop clients in Moscow, Nizhny Novgorod, Pskov, Perm, Kazan, Tyumen and many more cities, Irina Rybalchenko, LLK International spokeswoman, told Lube Report last week. These dealers will recommend that car owners use our Genesis and Luxe brands for subsequent oil changes. LLK is Russian oil major Lukoils lube arm.

The company will also supply Uz-Daewoo dealers and an assembly plant of joint venture automaker GM Uzbekistan with a private label oil brand named UzautoOil. GM Uzbekistans plant is based in Asaka, Uzbekistan, and manufactures Korean Matiz and Nexia models, as well as several Chevrolet car models. The Asaka car plant uses LLK oils for factory fill.

Launch of the Genesis line of premium oils in Russia comes almost one year after its original introduction in the European market, when it was first produced by LLKs lubricants blending pant in Ploiesti, Romania. The plant has capacity to manufacture 30,000 tons of finished products annually.

Genesis sold in Russia is supplied by the companys plant in Hamina, a small port city in Finland, located on the Gulf of Finland near the Russian border. The plant can produce 32,000 t/y of finished product with the possibility for further expansion, according to a plant official. It currently supplies the Russian market with 5W-40 and 5W-30 viscosity grade synthetic Genesis products, Rybalchenko said.

Genesis oil is manufactured under specification and technology developed by additive maker Infineum. Milton Hill, U.K.-based Infineum is a joint venture between ExxonMobil and Shell.

LLK said it plans to expand its industrial segment sales in Europe, India and the United States, by increaseing the supply of its Steelo 150 industrial gear oil. Its biggest client for industrial gear oils in Europe is the British company Rexam, a packaging producer that has 67 manufacturing facilities across the world, including Egypt, Turkey, Sweden, Finland, Denmark, Italy and India. LLK supplies one-half of Rexams needs for gear oil in Europe, and it will soon start to supply its Mumbai, India, plant.

The Russian lube manufacturer recently received approval to supply Steelo 150 gear oil by Stolle Machinery, a U.S. manufacturer of cans.

Also, LLKs Avangard Ultra engine oil was recently approved by the Romanian transportation ministry for use in Siemens Desiro and Caterpillar locomotive engines operated by the countrys national railway company (CFR), according to the company. LLK is slated to supply CFRs passenger and cargo division with 640 tons of Avangard Ultra engine oil by the end of 2013. In addition, it will supply 10 tons of its ATF Synth HD transmission oil for CFRs Desiro engines.

LLK is Russias biggest lube marketer and holds about 30 percent of the countrys lubricants market. In 2012, the company sold 325,000 tons of packaged lubricants, up from 220,000 tons the year before. It sells finished products in 35 countries. LLK operates four blending and base oil plants in Russia. In addition to its blending plants in Romania and Finland, it has one plant in Turkey.

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Europe    Finished Lubricants    Region    Russia