Argentine state-owned oil firm YPF has announced changes to its lubricants business strategy in Brazil. The company has participated in the Brazilian lubricants market since 2015, with a 2% market share.
To be able to compete with both local companies, such as Petrobras and Ipiranga, as well as multinational lubricant/oil companies, YPF plans to focus on premium product segment to achieve higher margins in order to offset the fact that it is selling less volume. The strategy includes getting OEM support, rather than just getting the approval of national oil and gas agency ANP.
The company currently has contracts with Ford Motor Co., GM, Volkswagen and Scania in Argentina. It expects to be able to secure similar lubricant supply agreements with manufacturers in Brazil. The company said that negotiations are already taking place.
YPF is also looking to expand its distribution network in Brazil, from the current 15 distributors. YPF is also considering the launch of new stores in the interior of the country.
The company’s turnover in 2016 was BRL 182 million (USD55.46 million).