Africa Lubricants in expanded Caltex deal
Africa Fuel and Lubricants Limited (AFAL) has entered an expanded deal with Chevron which will now see it manufacture its Caltex lubricants in addition to distribution and marketing.
Prior to the new long term deal, AFAL has only had a distribution agreement with the owner of the Caltex brand which has seen it distribute and market the product across East Africa.
The re-negotiated deal is expected to strengthen the presence of Chevron in Kenya, Uganda, Tanzania, Rwanda, Burundi and DRC through AFAL Manufacturing Limited (AML), a peer of AFAL, as a licensee.
“Over the last eight years, our relationship with AFAL has grown from strength to strength and we are excited to begin a new chapter with AML, which will take the Caltex brand across Eastern Africa. This new agreement also includes lubricants blending options for future expansion,” said Douglas Rankine, General Manager Middle East and Africa – Fuels & Lubricants.
“Both parties worked through the pandemic to deliver the agreement, reflecting an enhanced relationship based on trust, integrity and performance.”
The deal which covers divisions of the Tristar Group will also see AML venture into the Tanzania market.
Under the venture, the pair will be seeking push the Caltex brand to a greater share of the East African market by capitalizing on cost benefits and synergies of local blending.
“We are confident that local blending is a move in the right direction for this business to remain competitive,” Africa,” said Eugene Mayne– Tristar Group CEO.