United Arab Emirates-based car dealer Al Habtoor Motors and Russian lube maker Lukoil signed a partnership deal that will expand Lukoils lubricants distribution throughout the Middle East.
Under the agreement, the car dealer will distribute Lukoils finished products for industrial and automotive applications within a number of countries in the Middle East Gulf region. The deal was signed Dec. 4 in Dubai, during a ceremony attended by top company officials including LLK International General Director Maxim Donde and Al Habtoor Group President Sultan Al Habtoor.
Lukoil lube arm LLK is the largest lubricant marketer in Russia and has a significant presence in Europe. Expansion in the Middle East and particularly in the U.A.E. is part of our global development strategy, said Donde in a Dec. 12 news release. LLK actively operates in Europe where it has production facilities, and is developing its sales in Turkey, where we succeeded in taking up to 12 percent of the countrys lubricants market.
Lukoil pledged to expand its presence on the global lubricant markets, especially in the marine oils segment, where it held a 5 percent share of the worlds marine oil market for the first 11 months of 2014, according to Donde. At the moment we are looking with great interest at the markets of India and China, where we see great potential for growth.
When we were approached by Lukoil, I was surprised that one of the worlds largest oil companies was not present in the U.A.E. automotive market. We made this partnership to bring a new dimension to our business, said Karl Hamer, managing director of Al Habtoor Motors. We are proud to be the only official representative of Lukoils lubricant business in the region. The groups developed business could greatly increase Lukoils sales of automotive lubricants and greases in the U.A.E. and in the region.
Al Habtoor Motors is part of Al Habtoor Group which does business in many sectors such as construction and development, real estate, hotels, publishing and car sales and leasing.
Sultan Al Habtoor said that Al Habtoor Motors has teamed up with some of the best-known brands in the business, including Mitsubishi, Fuso, Chery, JAC, TEMSA, Bentley, Bugatti and McLaren in the U.A.E. Lukoil is a major global brand to add to our portfolio, and we look forward to a strong partnership.
In 2005, oil major Lukoil spun off a separate lubricants business unit. The company controls 48 percent of the Russian lubricants market, and in 2013 it produced 1.1 million tons of base oils and lubricants, according to Lukoil. LLK sells over 1,000 different types of lubes and greases for the automotive and industrial sectors. Its products are sold in over 60 countries worldwide.