- Market News
Rosneft subsidiary expands petroleum product offering in Germany
Rosneft Deutschland GmbH, a subsidiary of Russia’s Rosneft, plans to expand its product offering in Germany and other countries, with the signing of a contract with BITUMINA Handel GmbH & Co. KG, a subsidiary of Basalt-Actien-Gesellschaft.
Present during the signing were Rosneft Chief Executive Officer Igor Sechin and Rosneft Chairman of the Board of Directors Gerhard Schroeder.
“In the next five years, Rosneft is planning to invest no less than EUR 600 million [USD 735 million] in the development of business in Germany. Rosneft’s goal is to become a supplier of the whole range of products and services, rather than simply hydrocarbons, for German consumers,” Sechin said.
The agreement provides for the processing of bitumen produced by PCK refinery at the BITUMINA polymer-modified bitumen (PMB) plant for production of Alfabit PMB, based on Rosneft’s own formulation.
“We are pleased that the German highly competitive market has highly appraised our product which is based on unique recipes and using up-to-date technologies. The agreements reached by Rosneft Deutschland and BITUMINA allow us to apply and develop Rosneft technologies in Germany and Europe in general, and are an important step in the company’s strategy to enter the German market of petroleum products,” said Rosneft Deutschland General Director Brian Chesterman.
“We look forward to future cooperation with Rosneft Deutschland GmbH in Schwedt. With the newly established partnership, we are using the respective strengths that Basalt AG and Rosneft Deutschland GmbH bring with them, thus sustainably strengthening Schwedt as a business location,” said Peter Vos, chairman of the Board of Management of Basalt-Actien-Gesellschaft.
Basalt-Actien-Gesellschaft produces asphalt mixtures and construction materials at more than 280 quarries and asphalt plants throughout Germany.
In January 2018, Rosneft Deutschland commenced the marketing and sales of bitumen in Germany and neighboring countries, providing commercial volumes of pavement bitumen from PCK, Bayernoil and MiRO refineries.
Rosneft said it intends to actively use long-term contracts to ensure a reliable supply of high-quality bitumen products and a high level of customer service.
In May 2017, Rosneft opened the office of its subsidiary, Rosneft Deutschland GmbH. Rosneft is the third largest player in the German oil refining market with a throughput of about 12.5 million tons per year, which is more than 12% of all German refining throughput. Rosneft Deutschland GmbH manages the supply of feedstock to the refineries owned by Rosneft: PCK Raffinerie GmbH, MiRO refinery, Bayernoil refinery, and also the sale of petroleum products.