Lukoil reported 5 percent growth in finished lubricant sales for 2016, driven by the companys increased sales of high-margin products and expansion of its product mix.
Last year our consolidated sales of finished lubricants reached 761,000 tons, up from 723,000 tons sold in 2015, Lukoils lube arm LLK International told Lube Report last week. In 2016 the companys premium motor and industrial oils sales rose 22 percent compared to the year before.
Factors such as a program seeking to substitute Lukoils lubricants for imported products and a favorable market environment helped drive LLKs production and distribution growth, Lukoil said in its annual report published recently.
Lukoil, Russias largest lubricant marketer, held 45 percent of the total base oil and finished lubricant production in the country in 2016. Last year the companys total base oil and finished lubricant production reached around 1 million tons, an 11 percent increase compared to 2015.
Developing the product mix in line with the latest requirements became a priority this past year. In 2016 we developed 50 new lubricant grades and changed the formula of 60 products. The product mix was expanded to 700 items, said a representative, adding that the company began producing premium lubricating coolants for the metal processing industry.
Lukoil became one of the top five global suppliers of marine lubricants, as its share in the global marine oils market jumped to 10 percent, up from 9.5 percent in 2015. The company also obtained 150 new finished lubricant approvals from global industrial equipment manufacturers and over 140 such approvals from leading car manufacturers.
Photo courtesy of LLK International
A factory fill supplier for car manufacturers operating in Russia and Europe, Lukoil emphasizes the development of partnerships with authorized car service stations. In 2016, the volume of lubricants that LLK supplied to service stations increased by 60 percent and the companys customer base in the aftermarket segment doubled, according to the report.
Lukoil broke ground last year on a 100,000-tons-per-year lubricant blending plant located in Almaty, southeast Kazakhstan. The plant, scheduled to go online in 2018, will supply the Central Asian and Chinese markets.
Lukoil markets its lubricant products in more than 100 countries through its subsidiaries in Europe, the Middle East, Central Asia and China.