FEATURE COMPANY


LUBRICANTS PRODUCTION


From a family business to a major player; the story of African Group Lubricants


S


outh Africa is one of Africa’s largest economies, with a population of around six- ty-one million. Consequent- ly, the automotive and indus-


trial sectors are sizeable. To cater to the lubrication needs of this vast economy, South Africa has attracted many multina- tional Oil Marketing Companies (OMCs) to supply lubricants. According to Mordor Intelligence, the country’s annual lubricant consumption is estimated at 419.90 million liters, with a projected annual growth rate of 4%. The market continues to experience sig- nificant growth and is emerging as an at- tractive hub for key industry players. This market is considered one of the mature markets in Africa, and it, therefore, has a demand for high-quality lubricants. This has seen the major multinational lubri- cant brands take the lion’s market share. It is impressive that despite the sig- nificant presence of multinational com- panies, indigenous lubricant companies are also present. These companies have a range of products specifically made for the South African landscape, and they, too, have a customer base. To take it a notch higher; some of these companies have blending plants that apply interna- tional standards to produce high-quality lubricants. As a result of this competency por-


trayed by the indigenous companies, the South African lubricants market has wit- nessed strategic alliances, cooperation, and partnerships among these compa- nies and the multinational players in the lubricant industry for increased efficien- cies, diversification, and other operation- al and economic benefits. In this article, we look at one of the in-


digenous lubricant companies in South Africa that have made significant strides to cement its place in the lubricants in- dustry. Initially


a family-owned enter-


prise, the African Group (AG) Lubricants is a recognized player in South Africa’s market. It is a subsidiary of enX Group,


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an industrial group listed on the Johan- nesburg Stock Exchange that serves var- ious industry sectors in South Africa and sub-Saharan Africa,


offering branded


and, in some segments, locally manufac- tured industrial equipment, components, services, and technical expertise across a broad spectrum of industries. Established over 20 years ago, AG Lu- bricants is a manufacturer, marketer, and distributor within the lubrication indus- try in South Africa. It offers a range of


AG Lubricants has partnered with


prominent global industry leaders in the manufacturing and distribution of lubri- cants. One of the companies it has part- nered with is ExxonMobil, an interna- tional energy company selling the Mobil brand of lubricants. Besides being award- ed the rights to manufacture automotive lubricants in South Africa by ExxonMo- bil, AG Lubricants has also been granted local blending rights on certain product ranges for the mining, construction, and


AG Lubricants blending plant. SOURCE | AG LUBRICANTS


lubrication products and services, auto- motive lubricants, industrial fluids. These products are either from its lubricant’s private label or the international com- panies it distributes for. Besides supply- ing lubrication products, AG Lubricants, working alongside its lubricant engi- neers, partners with its clients to deliver tailored solutions that enhance and bring value to their customers’ businesses.


agricultural sectors. Under the manufac- turing approval, AG Lubricants currently blends a range of ExxonMobil products such as Mobil Delvac MX 15W40, Mobil Super, Mobil AGRI, Mobilgear, and Mo- bilfluid, among others. Apart from these lubricants blended by AG Lubricants, ExxonMobil offers the Southern Afri- ca market a complete range of hydrau- lic and lubricating products, including


LUBEZINE MAGAZINE | MARCH 2024


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