Quote of the Issue
Total Page:16
File Type:pdf, Size:1020Kb
Publication of LUKOIL Lubricants Company August 2012 (LLK-International) РAgE 2 Quote of the Issue: The volume of LUKOIL’s ready-made lubes is expected to grow fivefold over the next seven years as the Company steps up its presence on the markets of Europe, the Middle East, and Central Asia. In this Issue: International expansion We are producing and introducing LUKOIL MOTO new lubes – is a key LLK’s target the key products for the Europe European quality for small engines CONTENTS 2 STRATEGY International expansion is a key LLK’s target 2 4 BUSINESS DEVELOPMENT Alexey Strelchenko: "One of the secrets of the Company's success is its top-notch and comprehensive service" 6 PRODUCT Michael Weis: "We are producing and introducing the key products for the European market" 4 8 PRODUCT LUKOIL MOTO new lubes – European quality for small engines 9 PARTNERSHIP Armin Bolch: "We are strategic partners of global OEMs" 11 NEWS 8 9 «МАСЛА@ЛУКОЙЛ» # 1 August 2012 "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 экз. The magazine is registered by the Federal Service for Media Law Compliance and Cultural Heritage. Registration certificate ПИ №ФС77-28009 1 International expansion is a key STRATEGY LLK’s target OOO LLK International (LLK) continues to expand actively on the inter- national lubricant market. The volume of LUKOIL’s ready-made lubes is expected to grow fivefold over the next seven years as the Company steps up its presence on the markets of Europe, the Middle East, and Central Asia. he sale of ready-made lubes, the Czech Republic, Hungary, Serbia, LUKOIL Group, is one the Company’s Twhich are manufactured Montenegro, Greece, Bulgaria, top priority foreign markets. abroad, is sourced through three of Moldova, Ukraine, and Bosnia and Similar to the system built in Russia, LLK International’s main production Herzegovina. in Turkey the Company combines di- and commercial centers, in Finland, However, the most tangible success rect sales to large end consumers Romania, and Turkey. The Teboil lube was achieved at the Turkish division with sales through dealer networks. oil blending plant (LOBP) in Finland is of the Company, LLK Eurasia. Since After winning tenders, LUKOIL be- the supply hub for Scandinavia and 2009, when LLK International took gan to deliver lubricants to leading Northern Europe. Several types of lu- control over the production and pack- branches of industry. These include bricants from this plant are also deliv- aging plant for Akpet motor oils, the Izulas (municipal subway) and TCDD ered to Russia and Kazakhstan. The plant’s output has more than tripled, ex- (railroads) in the transport sector Company’s ready-made lubes, which ports have doubled, and deliveries to and such companies as Tki Ҫli, CSR, are manufactured in the Romanian the domestic market have quadrupled. Eldemir, Bektaslar Gubrecilik in the Petrotel refinery, are geared towards Turkey, with a population exceeding Eastern Europe. The main consumers 73 million people and in geographical THIS YEAR LUKOIL ENTERED THE LUBES of lubes from this plant are located in proximity to the raw material sources of MARKET OF BANGLADESH 2 coal mining industry and ilken Enerji in the power industry. LLK Eurasia is virtually the sole provider of lubes; deliveries are also underway to Tülomsaş, a Turkish manufacturer of locomotives. The acquisition of a LOBP in Turkey has enabled the Company to promote LUKOIL’s lubes not only on the Turkish market but also in a number of Middle East countries and in North Africa. Iraq, with a population of over 30 mil- lion, is second on the Company’s list of priorities in this region. LUKOIL’s products first made their appearance here in 2009, and it plans to capture a 4% market share in 2012. Further expansion of the Company’s geographical supply range occurred in April 2012 when LUKOIL took steps to enter the lube business in THE COMPANY’S NEXT TARGET FOR READY-MADE LUBES WILL BE THE RAPIDLY EXPANDING Bangladesh. COUNTRIES OF SOUTHEAST ASIA AND NEIGHBORING CHINA The Company’s expansion of its geo- graphical range of marine oil supplies has also been a major achievement from Russia last year, which is 30,000 ity. The first batch of LUKOIL’s lubes over the past three years. At pre- tons more than in 2010). China pro- was shipped to Chinese custom- sent the supply network of LLK Marine duces 8.3 million tons of lubricants. ers in May 2012. At the end of the covers about 600 ports in 62 coun- Demand for lubricants has risen 7% month, the Dealer Commission of LLK tries around the world. It should also on the Chinese market over the past International approved official dis- be noted that LUKOIL Navigo’s lubes decade. Last year, the demand for lu- tributors in China and neighboring are a product in the premium seg- bricants stood at 7.1 million tons, up Mongolia. ment and are positioned in the same from 6.8 million tons in 2010, largely International expansion and astute price band as that of world leaders. In due to rapid growth of the automotive positioning of the lube business on 2011 alone, LLK Marine won the first- industry. Cars exceeded 100 million, the global market LUKOIL to achieve fill rights to 71 large-tonnage vessels and global auto producers (including leadership among its Russian rivals. at shipyards in China, Korea, Turkey, VW and Ford) continued to build new Romania, Russia, Japan, Germany, auto manufacturing plants throughout AT PRESENT THE SUPPLY NETWORK OF LLK and Ukraine. the country. This is why the Chinese MARINE COVERS ABOUT 600 PORTS Regarding lube basestock, if be- market is LLK International’s key prior- IN 62 COUNTRIES fore 2008 this commodity was most- ly available in Europe, today base oils are delivered in a geographi- cal range spanning North and South America, Africa, and Eurasia to a total of 35 countries (including Argentina, Ecuador, Colombia, Cuba, China, USA, Korea, Vietnam, Singapore, Thailand, India, Sudan, Israel). LLK International’s foreign business de- velopment strategy calls for raising the level of distribution and further scaling up its footprint on traditional markets in Europe, the Middle East, and Central Asia. The Company’s next target for ready-made lubes will be the rapidly expanding countries of Southeast Asia and neighboring China, with the lat- ter being the top priorty. According to official statistics, China currently im- ports 2.7 million tons of lube bases- tock (of which 150,000 tons came 3 Alexey Strelchenko: "One of the secrets of the Company's BUSINESS BUSINESS success is its top-notch DEVELOPMENT and comprehensive service" The latest significant events in the business of OOO LLK-International are associated with its international development of foreign supplies. In this interview, deputy general director of LLK-International Alexey Strelchenko talks about OAO LUKOIL’s performance and plans for for- eign sales of lubricants produced in Russia. Масла@ЛУКОЙЛ | Could you com- ment on LUKOIL’s performance in ex- porting ready-made lubes from Russia over the past few years? Alexey Strelchenko | OAO LUKOIL’s international lube business has been developing at a steady pace in recent years thanks to the Company’s global expansion. Along with extending our range of supplies, we are broaden- ing our array of goods and devoting increasingly greater attention to their quality. The development of LUKOIL’s ready-made lubes manufactured in Russia got under way in earnest when the Company conquered the biggest markets among post-Soviet countries – Belarus, Ukraine, and Kazakhstan – and some Caucasian republics. In 2010 the Company took steps to expand its business in other countries of Central Asia where, according to OAO LUKOIL President Vagit Alekhperov, the Company has strategic interests. LUKOIL’s sales of lubricants have reached historic levels in Central Asia, Ukraine, and Belarus, as this indicator rose nearly 50% com- pared with the previous year. Масла@ЛУКОЙЛ | Higher lubri- cant sales are largely a result of OAO LUKOIL’s successful implementation of its business strategy, which is geared toward import substitution. Could you provide with some examples? And what about LLK-International’s rela- tions with neighboring states? 4 Alexey Strelchenko | One of the this synergy is the delivery of lubricants the Company’s success is its top-notch clearest illustrations of this strategy is for TE33A Evolution diesel locomo- and comprehensive service. Sales of an agreement on the supply of lubri- tives to Tajik railroads. These locomo- premium goods are driven by a high cants for General Electric diesel lo- tives are purchased by the Tajik party level of services and expertise of the comotives running on railroads in from General Electriс’s Kazakhstan- distribution network. Nowadays Kazakhstan. With this agreement, we based JV. The contract for the sup- LLK-International’s distribution in replaced Shell, a serious and strong ply of LUKOIL locomotive lubricants Kazakhstan, Ukraine, Belarus, Central competitor. Another highlight this year became possible largely due to work Asia, and the Caucasus is one of the was a first-fill contract signed with au- performed in earlier years to obtain competitive compared with other com- tomotive engine plant General Motors the approvals and conduct service panies. We are satisfied with the qual- Power Train Uzbekistan (Tashkent, tests on General Electric’s locomotives ity of work performed by our dealers. Uzbekistan) and auto assembly facil- in Kazakhstan. They truly pull out all the stops to cul- ity AO AgromashHolding (Kostanay, Other achievements include open- tivate long-term business ventures, Kazakhstan).