Statoil Lubricants and Pemco have signed an agreement for the production and sale of lubricants in Estonia, Latvia and Lithuania.
The agreement means that Statoil Lubricants will be a leader in the sale of lubes in Lithuania, with a market share of almost 30 per cent.
Statoil’s ambition is to be the dominating player in the lubes market in the Baltic states. The Pemco agreement is a step in the right direction, says Anders Åkerlund. He is head of international sales in Statoil Lubricants.
Statoil takes over Pemco’s sales organisation and clients in the Baltic states, whilst Pemco retains the lube oil factory in Lithuania. The company will produce lubes for Statoil Lubricants and for export to countries outside the Baltic states. The agreement guarantees Statoil Lubricants access to an annual capacity of 22 million litres of locally produced lubes.
According to Mr Åkerlund, the deal also means an increase in the sales of lubricants, from roughly 2 million litres to over 14 million litres per year. Provided that the agreement is approved by the competition commission in Lithuania, Statoil will take over Pemco’s sales activities in April.
Statoil Lubricants, which is a business unit in the group, is the leading marketer of lubes, chemical products and associated services in Scandinavia. Apart from Scandinavia and the Baltic states, the unit does business in Ireland, Poland and Russia.