Never Stall at Severstal with LukOil


OAO LukOil recently entered a 5-year strategic cooperation agreement with Russian automaker OAO Severstal-Auto. The deal calls for LukOil to supply automotive lubricants for factory fill and industrial lubricants for Severstal-Autos production plants.

Moscow-based Severstal-Auto holds controlling blocks of shares of OAO Ulyanovsk Automobile Works, OAO Zavolzhye Motor Works and OAO ZMA. Ulyanovsk manufactures four-wheel-drive vehicles – including the Japanese Isuzu brand – such as off-roadsters, light trucks and minibuses. Zavolzhye manufactures four- and eight-cylinder gasoline engines for E class cars, off-roadsters, buses, light trucks and special-purpose vehicles. ZMA assembles four-wheel-drive vehicles, including Korean Ssangyong and Italian Fiat brand vehicles under license agreements.

According to the Jan. 16 announcement, the agreement includes delivery of LukOil branded oils for use in the operation of Severalstal-Auto production facilities, for factory fill of cars produced by Severstal-Auto, and for its service centers for aftermarket maintenance. The agreement also calls for joint elaboration and introduction of motor oil substitution programs for LukOil branded products certified and approved by foreign auto makers.

LukOil, headquartered in Moscow, and its subsidiaries will develop modern oils and other oil and gas production for Severstal-Auto under the agreement. The two companies will also cooperate on marketing programs and work on joint development of infrastructure facilities designed for car maintenance.

The arrangement continues the energy giants steps to tie up with original equipment manufacturers. LukOil previously signed cooperation agreements with GAZ Group, OAO Avtovaz, OAO Agromashholding, OAO Kamaz and several other OEMs in Russia.

The cooperation agreement signed between OAO LukOil and OAO Severstal-Auto fits well with the cooperation development program between our company and Russias leading car manufacturers, said LukOil President Vagit Alkeperov. Such cooperation will not only ensure smooth supply of motor oils and fuels, but will also help introduce new products compliant with the international standards.

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