Russian lube marketer Gazpromneft Lubricants launched two products in the Dominican Republic in a bid to penetrate the South American market.
The Russians partner in the Caribbean island state is Lucho & Compania S.R.L., one of the biggest automotive suppliers in the country. This partnership started in September, when the Dominicans bought a batch of 23 tons of our G-Energy and Gazpromneft-branded products, Gazpromneft Lubricants said in a press release. Our short-term plan is for this partnership to evolve into official distribution of the G-Energy line of products, and the start of a mono-brand type of sale [of our products] in the country.
Gazpromneft Lubricants is Russian oil major Gazprom Nefts lubes arm.
Lucho & Compania operates a chain of heavy duty truck service stations in the country, where Russians expect their products to be recommended for regular oil change and service.
The Dominican Republic today has a huge economic potential. Its lubricant market is estimated at 23,000 to 25,000 tons per year and shows 4 to 5 percent annual growth. Doing business here will not only let us expand to up to 40 additional countries [in Latin and South America], but it can strengthen our position in the international markets, said Alexander Trukhan, general director of Gazpromneft Lubricants.
The Dominican company is a major lubricant distributor in the Caribbean region. It supplies up to 900,000 t/y of finished products annually in the Caribbean islands, in South America and in the United States, according to Gazpromneft Lubricants. It also deals with the supply of automobile accessories, car batteries and car air conditioners, as well as industrial and agricultural equipment.
Gazpromneft Lubricants holds a 14 percent share of the 1.7 million tons per year Russian finished lubricants market. It operates five lube manufacturing facilities in Russia, Italy and Serbia with a total blending capacity of 450,000 t/y.
Besides Russia, the company’s key markets are Southeast Europe, Ukraine, Belarus, Kazakhstan and Central Asia. In total, its products are marketed in 39 countries