Chevron Brands International LLC (Chevron) has signed have signed a long-term license agreement with Manufacturing Limited (AML) of the Tristar Group for the production, distribution, and marketing of Caltex TM lubricants in East Africa.
The deal strengthens Chevron’s presence in East Africa.
According to the agreement, the existing relationship with Africa Fuels & Lubricants Ltd (AFAL), also of the Tristar Group, seeks to leverage the synergy of Caltex’s strong brand strength and AML’s extensive market reach to successfully carve out a share in the competitive East Africa lubricants market.
“This new agreement also includes lubricants blending options for future expansion,” said Douglas Rankine, GM Middle East & Africa – Fuels & Lubricants.
Chevron says the growing demand for lubricants in the region will realize its entry into Tanzania as a new market for AML.
Tristar is a global business, headquartered in Dubai, which offers end-to-end fuel logistics solutions to blue-chip clients including international and national oil companies and intergovernmental organizations.
According to IndustryARC, a Leading Provider of Market Research Reports, the East Africa lubricant’s market demand is projected to grow at a compound annual growth rate (CAGR) of 3.15 per cent during the forecast period of 2019-2025.
“The East African lubricants market growth is extensively aided by the approaches and innovations of several companies. Also, investment in Research and development (R&D) activities and launch of newer products by these market pioneers will eventually contribute to the economic income of the niche market,” the report notes.
Key players in the market include Petrochina Company Ltd, Idemitsu Kosan Co Ltd, Royal Dutch Shell plc, ExxonMobil Corporation, BP PLC, SINOPEC, TOTAL SA, Lukoil, Chevron Corporation, and Fuchs.