Polish lube marketer Orlen Oil started the liquidation process of its Czech product distribution subsidiary, the company told Lube Report on Tuesday.
Beginning Jan. 1, Orlen Oil Cesko, a distributor of the Orlen finished products in the Czech Republic that also covered Hungary and Slovakia, ceased to exist. The distribution changes in Czech Republic and Slovakia are the first step of a broader distribution remodeling, the Polish oil major acknowledged.
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The sales activities in Czech Republic and Slovakia will be taken over by [Czech oil company] Paramo. It will be responsible for the distribution of Orlen Oils finished products to the existing and new clients on the territory of these two countries, the company said.
Paramo is 100 percent owner of Mogul, a Slovak lubricants marketer.
Orlen stressed that the companys sales activities in Hungary have been taken over and would be continued by an independent, authorized distributor. This action is the result of a decision between aimed at increasing effectiveness and strengthening our position in Central Europe, Orlen said.
Orlen Oil is a major Central Europe lubricants marketer. Headquartered in Krakw, it operates three lube plants in the Polish cities of Plock, Trzebinia and Jedlicze, each one specializing either in base oils manufacturing or in blending a specific range of lubes and greases.
As a market leader in Poland with a significant presence throughout Central Europe, it offers a wide range of lubricating products for the automotive industry as well as for agricultural and industrial purposes under brands including the premium Platinum automotive brand, Orlen Oil, Hipol and several others.
Orlen Oil is part of the Orlen Group crude oil processing enterprise that owns seven fuel refineries. Three are located in Poland, three more are in the Czech Republic and one is located in Lithuania.