Q8Oils is successfully expanding its business in Africa thanks to an innovative agreement with Blue Chip Lubricants, a leading manufacturer, and distributor in South Africa.
As part of its ongoing drive to expand its business around the world, Q8Oils has identified Africa as an area of high growth for lubricants. Expansion into the market, however, had been restricted by the logistics, lead time and cost of importing products from Q8Oils’ blending plant in Antwerp. To overcome these difficulties, in late 2015 a contract was signed- the first of its kind for Q8Oils- with Blue Chip Lubricants to blend, produce, and distribute Q8Oils lubricants locally in South Africa.
Blue Chip Lubricants manufactures high-quality oils under strict production and quality control measure set by Q8Oils, using the same formulations as those blended for Q8Oils customers in Europe. Laboratory testing follows the identical methods and equipment used by Q8Oils. Quick to spot the potential of this partnership with one of the world’s leading lubricant companies, Blue Chip Lubricants last year invested more than $1 million in extensively upgrading and expanding its manufacturing plant and testing laboratory. The new state-of-the-art plant has increased its annual production capacity to more than 48 million liters of lubricants and 2.4 million kilograms of grease.
This arrangement is opening exciting new opportunities for Q8Oils. Blue Chip Lubricants has strong business links, developed over 30 years, with South Africa’s mining, automotive, energy and metal working industries. In addition, as a local manufacturer, it can export to member countries of the Southern African Development Community free of duty, extending its reach across the continent.
Abdulmohsen Homoud, regional sales manager of the Middle East & Africa at Q8Oils, comments: “Business has been growing steadily since we set up this agreement and now that manufacturing capacity has increased, combined with the strength of our brand, we anticipate gaining a strong foothold in South Africa and further afield”
Reinder Oosterhof, Q8Oils Commercial Director, says: “Partnering with a local manufacturer is an excellent business model for expansion, giving us secure supply, competitive pricing, flexibility and access to an established distribution network; in return, partners benefit from the world-renowned quality and high reputation of our brand. We are looking at similar projects around the world and believe that this strategic thinking will give Q8Oils the edge to become a true global player”
(This article was taken out of Q8Sails Spring 2017 in Europe)