New agreement strengthens Caltex lubricants’ growth and presence in the region
Chevron Brands International LLC (Chevron) and AFAL Manufacturing Limited (AML) of the Tristar Group have signed a long-term license agreement encompassing production, distribution, and marketing of CaltexTM lubricants in Kenya, Uganda, Tanzania, Rwanda, Burundi and Democratic Republic of the Congo (DRC). With the signing of this agreement, Chevron has strengthened its already growing presence in East Africa and entrusted its operations to AML as a licensee.
Caltex branded lubricants have been available in East African countries since 2013 through a distributor agreement with Africa Fuels & Lubricants Ltd (AFAL), also of the Tristar Group. The mutual trust and satisfaction from this successful collaboration was a major factor in the realization of the long-term license agreement. Under the new scope, Chevron will provide its world leading technology, and AML will blend, market, and distribute Caltex branded lubricants through its extensive network. The relationship seeks to leverage the synergy of Caltex’s strong brand strength and AML’s extensive market reach to successfully carve out a share in the competitive East Africa lubricants market.
“Chevron has a history in East Africa spanning seven decades and we have collaborated with AFAL since 2013. 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, GM Middle East & Africa – Fuels & Lubricants. “Both parties worked through the pandemic to deliver the agreement, reflecting an enhanced relationship based on trust, integrity and performance.”
The success of this license agreement and the growing demand for lubricants in the region were major factors in building further the relationship between the Tristar Group and Chevron, and will realize entry into Tanzania as a new market for AML.
This long-term strategic relationship is an indication of Chevron’s commitment and assurance to customers in the East Africa markets to make available quality products and to contribute towards the economic development of the region through the partnership of both Chevron and AML in the East Africa lubricants market.
AML is confident that this move will enable the Caltex brand to gain larger market share in East Africa by capitalizing on cost benefits and synergies of local blending.
“Being selected by Chevron for this significant responsibility is a major show of confidence in the long term relationship between Chevron and the Tristar Group since AFAL was first awarded a lubricants distributor agreement by Chevron in 2013, and will serve as a launch pad for Caltex branded lubricants to expand sales in the East African region. We are confident that local blending is a move in the right direction for this business to remain competitive, and we will spare no effort to strengthen the position of the Caltex brand in East Africa,” said Mr. Eugene Mayne, Tristar Group CEO.
Tristar is a global business, headquartered in Dubai, which offers end-to-end fuel logistics solutions to blue-chip clients including international and national oil companies and intergovernmental organizations. Its integrated energy logistics platform spans road and maritime transportation, specialized warehousing, fuel farms, commercial aviation refueling and fuel supply operations.
AML is committed to manufacture high quality lubricants as per Chevron’s standards and is committed to service customer requirements and the ever-expanding East African market expectations.
With this strategic relationship, Chevron and the Tristar Group are investing more towards meeting an ever-growing demand for Caltex branded lubricants, which cover the consumer, commercial and industrial sectors across the East African region.