Argentina’s state-owned energy company YPF sold its finished lubricant factory near Sao Paul, Brazil, to local company Usiquimica. The sale is part of YPF’s current aim to quadruple its value in four years by concentrating on upstream operations in Vaca Muerta.
Brazil’s finished lubricant market is by far the largest in South America and the second largest in the Western Hemisphere after the United States. Consumption in 2024 was almost 1.6 billion liters.
YPF Brazil has a small portion of that market, about 2%, and manages turnover of U.S. $1 million a year. This led YPF President and CEO Horacio Marin to state in a press release that retaining the Brazil unit could not be justified.
Usiquimica bought 100% of YPF’s shareholding in the Brazilian unit with a license agreement for YPF lubricant brands in Brazil to maintain the company’s presence in this key regional market. Usiquimica already has a license to market products under the Valvoline brand.
YPF Brazil also makes chemicals and other types of products for agriculture and marine applications.