Azerbaijan supplies all of its finished lubricants from import, and Technols competitive advantage will be a discount of at least 50 percent in the prices of its finished products, compared to imported products, Murad Rafiev, the companys executive director, told Lube Report on Tuesday. In the foreseeable future, we plan to expand the capacity of the plant to 80,000 t/y. Market research has shown that we have a strong position in the region and can supply not only the growing Azerbaijan market but all neighboring countries as well.

In Azerbaijan, annual engine oil consumption amounts to around 53,000 tons, according to market research conducted by Technol.

The company was established in 2015 when its founders and private investors started the project to build the blend plant. During 2016, test batches of products were blended, and now the company has a portfolio of approximately 60 products, the company said. Those include engine oils, tractor, marine and industrial lubricants, along with hydraulic fluids, greases and coolants. Some formulations are synthetic or semi-synthetic, and at least some products are marketed under the companys flagship Technol brand.

The company purchased the plants equipment from a Turkish manufacturer that claims to use German technology. In addition to the blending operation, the plant includes a laboratory. We import base oil and additives from France, Italy and Russia, and our motor oils comply with the latest API and ACEA [American Petroleum Institute and European Automobile Manufacturers Association] engine oil standards.

The plant is operated by a work force of 50, and Technol is supported by government incentives such as tax breaks and exemptions from duties on equipment imports.