December 2013 Publication of LUKOIL Lubricants Company

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December 2013 Publication of LUKOIL Lubricants Company Publication of LUKOIL Lubricants Company December 2013 (LLK-International) New Year is a holiday longed for by perhaps all people on Earth. Let the New Year give you belief that it will be a year of new achievements, successes and fulfilments! Be healthy and happy. I wish you a festive spirit! LUKOIL President V. Yu. Alekperov LUKOIL Chairman G. M. Kiradiev CONTENTS 2 HAPPY NEW YEAR! 6 3 FORUM Moscow International Lubricants Week 2013 6 CORPORATE AFFAIRS LUKOIL brand is synonymous with carefully calibrated and effective movement forward 8 PARTNERSHIP Breakthrough in Ukraine 12 10 Northern supply lines 12 LUKOIL lubricants in Georgia 14 LUKOIL lubes for key clients in Romania and Macedonia 16 LUKOIL starts producing lubes in Austria 16 18 Road to China 20 NEWS 20 «МАСЛА@ЛУКОЙЛ» #4 December 2013 "Масла@ЛУКОЙЛ" is a publication of LLK-International Publisher: RPI Address: LLK-International, 6 Malaya Yakimanka, Moscow 119180 Phone: +7 (495) 980 39 12 e-mail: [email protected] Press run: 2,000 The magazine is registered by the Federal Service for Media Law Compliance and Cultural Heritage. Registration certificate ПИ №ФС77-28009 1 Dear Colleagues, Dear friends! t’s a tradition that before New In 2013, we continued supplies IYear we summarize the outgo- to AVTOTOR Company as LUKOIL ing year, thoroughly weigh past de- GENESIS engine oils became the velopments and ask ourselves what first fill lubricants for Opel and has been done. Was it done well? Chevrolet, while LUKOIL gear oils Effectively? How can we improve our became the first fill oils for engines performance? of Hyundai trucks and KIA cars. So, what kind of a year was 2013 for The success of subsidiary LUKOIL us? It undoubtedly proved extremely Marine Lubricants also merits spe- rich in events. This applies both to per- cial mention. LUKOIL’s achieve- sonnel decisions – the management ments on the marine oils market team of LLK-International consider- were so impressive that we decid- ably changed – and to business pro- ed to dedicate them an entire arti- MAKSIM DONDE, cesses. cle in the magazine as well as oth- CHIEF EXECUTIVE The last day of the year is to be marked er important events of the outgoing LLK INTERNATIONAL by a landmark event – our Company year. will integrate Volgograd and Perm re- In conclusion, I would like to thank fineries’ oil blending and filling sites. all our staff for their diligent work. I am confident that this move will al- Any achievement is the result of low us to respond more quickly to our consistent and productive labor. customers’ needs while providing a Uncompromising work, first of all – strong level of service. on oneself – is the basis of success. I would like to mention the most im- Therefore, the drive for self-improve- portant achievements from a long list. ment should become the unwavering First of all, I am pleased to note that a philosophy for each and every one new generation of engine oil LUKOIL of us. It is important to remember that GENESIS was delivered to the Russian professionalism is unthinkable with- market and sold through domestic ser- out effective teamwork. The com- vice stations. A key issue in facilitating pany's success is impossible without the dealers’ task was the signing of joint efforts, mutual respect, trust and contracts with automakers for first fill of coordination of action. lubricants. This year, lube supply con- I am confident in the bright future of tracts were signed with Sollers Trading our business! House and ROLF Group. We started A tough, albeit interesting, year lies supplies of unique UZAUTOOIL and ahead of us. I wish all of us patience, conventional LUKOIL LUX oils to the energy, brilliant ideas and bold initi- entire dealer network of UzDaewoo atives, as well as good health, family in Russia. happiness and harmony. 2 Moscow International Lubricants Week 2013 FORUM Moscow International Lubricants Week is held every year around mid- November. This is an event which usually brings together all large players and experts from this market segment. With 2014 right around the corner and the upcoming 10th anniversary of the conference, we have analyzed changes in the format of this event. The main conclusion is that interest in lubricants is steadily rising, since over the past 10 years the conference has turned from a narrow industry event into a high-profile international forum. fficial data eloquently • The 4th international conference ture machinery. This clearly shows that Oshow that the topic of lu- “Plastic Lubricants – 2013” the event is of interest not only to the bricants is gaining popularity eve- • The 4th special exhibition “Service representatives of Russian and foreign ry year that goes by. It is also be- and Equipment for the Lubricants oil companies or refineries, but also to coming increasingly clear that this Market – 2013” lube industry representatives as well two-day event is not long enough • The workshop “Infineum as automakers, trading companies, to hear all of the interesting topics Trends-2013” dealerships and consultancies, finan- and issues raised by the numerous cial and investment companies. And delegates from the lubricants indus- The conference is traditionally attend- aside from major industry players, an try. For this reason, the agenda of ed by the whole production chain of increasingly large number of small in- the conference was expanded to a the oil business: producers of base dependent companies are showing up at the forum every year. The broad range of attendees makes Conference data: 417 participants, representatives from it possible to deal with the most di- 163 companies, 23 countries. verse lube industry topics and assess such topics from multiple viewpoints. Alongside narrow technical presenta- whole week of discussions covering oils, additives and branding compa- tions, the agenda also features market- industry trends and topics. nies that certify tools and laborato- ing and trade issues pertaining to the Since its inception, the conference ries, as well as plants that manufac- development of the lubricants business. has seen the number of its delegates quadruple and in recent years it has been attended by over 400 people. The number of companies attending the event has been increasing every year and the range of attendees cur- rently spans over 20 countries. For instance, this year was the first time when delegates showed up from Iran, Nigeria and Ghana. The range of events at the conference underscores broad public interest in the most di- verse aspects of the industry. This year the official events included: • The 9th international conference “Production and the Lubricants Market – 2013” 3 Notably, many of the presentations were analytical surveys based on specific individual examples. Many were surveys of a single market seg- ment and clarified their main topics through illustrations from the activity of their companies. This same principle was used in the presentation of anoth- er representative of LLK-International, Vladislav Smirnov, who addressed specific features of the Russian energy industry from the angle of how lubri- cants are used. Mikhaill Babushkin, in his presenta- tion “Developing production of high- ly efficient packages of additives at LLK-Naftan, talked about the recent success in the joint venture between Russian LLK Naftan and Belarusian Naftan. This JV has for many years been the leader of additives produc- tion in FSU countries. LLL-International has been a gener- by the other speakers. As a matter of The presentation of Tomas Rühle from al sponsor of International Lubricants fact, the marine lubricant business of BASF SE on connections between Week for many years. This year LLK Marine was the focus of constant base oils and additives was also of presentations were given by Viktor attention. This was no coincidence, great interest, as well as the presenta- Zhuravsky, general director of Lukoil since LLK Marine has been the pride tions given by Eidan Rose (Evonik Oil Marine Lubricants Ltd, Mikhail of LLK-International for more than a Additives) and Kosuke Fujomoto from Babushkin, deputy general director of year already. Interest in this presen- Toyota Motors Corporation. LLK-Naftan, Vladislav Smirnov, head tation can be explained by the fact The presentation of Naira Aslanian of sales project for the energy sec- that Viktor Zhuravsky talked not only from the Kline Group contained some tor, sales department on the domestic about the success of his company but interesting data on the Russian lubri- market of LLK-International. also about the marine lubricants seg- cants market. According to data from According to most of the people who ment as a whole. Apparently, most of that company, Russia is nowadays the attended the conference, one of the the participants were not aware of the largest European consumer of lubri- best presentations was delivered by features of this market, especially giv- cants. At the end of 2012 the scope LLK-International’s Viktor Zhuravsky en the fact that aside from LLK-Marine of consumption in the country amount- “Development of the global marine lu- there are no other Russian companies ed to 1,705,000 tons or 26% of the bricants business”, which was quoted that are professional participants of European market and 4% in global not only by industry journalists but also the marine lubricants industry. terms. Over the next five years Kline Group expects the consumption of lu- THE CONFERENCE ATTENDEES ALWAYS HAVE AMPLE OPPORTUNITY TO TOUCH BASE bricants in Russia to increase by 10%, AND CHAT WITH PEERS and 18% over the next 10 years. 4 Individual consumers (+27% over the facet of the event. During the coffee portant negotiations, some of which next 10 years) are expected to ac- breaks the halls adjacent to the con- lead to the stipulation of contracts.
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