Chevron Brands International (Chevron) has partnered with AFAL Manufacturing Limited (AML) of the Tristar Group in a long-term license agreement. The agreement encompasses production, distribution, and marketing of Caltex lubricants in Kenya, Uganda, Tanzania, Rwanda, Burundi and Democratic Republic of the Congo (DRC).
With this agreement, Chevron has strengthened its 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 and Lubricants (AFAL), also of the Tristar Group. 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.
“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 and Africa, Fuels and Lubricants.
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 Caltex brand in East Africa,” said Mr. Eugene Mayne, Tristar Group CEO.