AML launches blending of Caltex lubricants in East Africa
Following the signing of a long-term license agreement with Chevron Brands International LLC in September, AFAL Manufacturing Limited (AML) officially launched the local blending of Caltex™ lubricants in East Africa on October 14.
AML is a subsidiary of the Tristar Group, a global business which offers end-to-end fuel logistics solutions to blue-chip clients including international and national oil companies and intergovernmental organizations, headquartered in Dubai, United Arab Emirates.
The license agreement with Chevron includes production, distribution, and marketing of Caltex™ lubricants in Kenya, Uganda, Tanzania, Rwanda, Burundi and the Democratic Republic of the Congo (DRC).
Caltex has had a long-term presence in Africa; this region is one of the fastest developing markets in the world, with demand for premium lubricants growing at a healthy pace.
The launch event was held in Nairobi, Kenya, and attended by Chevron’s Rochna Kaul, vice president, fuels and lubricants, for Europe, Africa, Middle East, South Asia Sales & Global Marine, and Eugene Mayne, Tristar Group CEO, and Kenyan government officials.
Local manufacturing to strengthen market position
“The move to local manufacturing in Nairobi is a step in the right direction for our relationship with Chevron, which started in 2013 with a distribution agreement covering the imported Caltex Delo and Havoline brands in Kenya and several East African countries through our subsidiary Africa Fuels & Lubricants Limited (AFAL). We are confident that through local manufacturing we will add value to enable us to take the Caltex lubricants brand to a strong market position by supplying high-quality lubricants backed by competitive prices and service. With more than eight years of local market knowledge, we are confident that there is a growing need for high-quality lubricants in the region and we are extremely pleased with this move to be able to sell and distribute locally manufactured, cutting-edge Caltex lubricants,” said Mayne.
According to available statistics, the market for lubricants in the region is expected to grow at a compound annual growth rate (CAGR) of more than 3% in the next four to five years, though the effect of Covid-19 may affect growth.
Flagship brands Havoline® and Delo® will be blended locally
“The flagship Caltex lubricants that will be blended locally are Havoline® and Delo® engine oils,” said Douglas Rankine, general manager, Middle East & Africa – Fuels & Lubricants. “As part of this new relationship with AML, Chevron is excited to grow the Caltex brand across Eastern Africa and will continue to explore future growth opportunities in new and existing markets.”
“Chevron has a long history in East Africa spanning seven decades. In 2013, Chevron signed a lubricants distribution agreement with Africa Fuels & Lubricants Limited, an affiliate of AML. The success of this new brand licensing model is anchored by the strong equity we have in our brands and a focus on implementing a compelling customer experience through our integrated fuels and lubricants business and strategic partnerships. We look forward to a long, and successful relationship with AML,” said Kaul.
