African Lubricants Market Attracts Investors to Fulfil Emerging Market Needs

- Frost & Sullivan presents case studies and insights at the 2nd ICIS African Base Oils & Lubricants Conference

CAPE TOWN, South Africa, Nov. 12, 2013 /PRNewswire/ -- The 2nd ICIS African Base Oils & Lubricants Conference took place at the Southern Sun Cape Sun Hotel in Cape Town last week, 6 and 7 November. The event drew crowds from a number of top chemicals companies, including ExxonMobil, Engen, Chevron, Petronas, Lubrizol, Total, and PetroSA, providing a leading platform for identifying and establishing further insights into the various markets associated with base oils and lubricants across Africa.

Anthony Lawrence, Research Analyst for the Chemicals, Materials & Foods (CMF) unit at Frost & Sullivan, delivered a presentation focused on identifying key African Mega Trends influencing both the automotive and industrial lubricants markets on the African continent. Mega Trends not only open up substantial opportunities to companies on a global level, but they also significantly alter the competitive structure of the industries in which companies operate, and the players within them.

"In the competitive landscape in South Africa, five tier one petrochemical companies hold between 80 and 90 percent of the industrial lubricants market. These companies include Shell, Chevron, Engen, Total and Castrol," noted Lawrence. "While in Nigeria, just over 70 percent of the total lubricants market is held by six tier one companies, which include Total Nigeria Plc, Conoil Plc, ExxonMobil, Oando Plc, Forte Oil Plc and MRS Oil Nigeria Plc."

Frost & Sullivan analysis presented at the conference indicated a positive outlook for lubricant manufacturers and distributors in Nigeria. The study revealed significant growth from a total estimated volume for lubricants of 185,000 metric tonnes in 2011 to more than 274,000 metric tonnes in 2012. Nigeria's total lubricants volume for 2012 is expected to reach just short of three times its volume by 2022.  

Sandy Reid-Peters, Marketing Technical Support Engineer from ExxonMobil Chemical Company, presented on the outlook for energy and the role that synthetic lubricants has in improving energy efficiency. He also expanded upon the drivers growing energy demand across Africa, and how synthetic lubricants will be able to address fuel efficiency whilst facilitating in the reduction of emissions. It was noted that the market for synthetics is becoming an even greater opportunity for many petrochemical companies, traders and the like.

David Gamble, Senior Tribologist and Technical Support to Supply Chain from Anglo American, provided the audience with in-depth knowledge of the different types of machinery used in mining, which accurately put volumes consumed within the mining sector into perspective. He later elaborated on areas that may present themselves as future opportunities for new suppliers of lubricants within the market. Gamble also pointed out that country government pressures are on the increase and it is becoming more apparent that mining ventures should look to buying products from local suppliers. It therefore seems apparent that joint ventures, agencies, and distributors may be the route to take in terms of the supply of lubricants.

The 2nd ICIS African Base Oils & Lubricants conference proved a success, with over 200 registered attendees, who are already looking forward to the next base oils and lubricants conference in 2014.

To download the presentation titled "African Mega Trends: Shaping and Prolonging the Future of Lubricants", please click HERE. For further information on Frost & Sullivan's multi-client projects, please contact Samantha James, Corporate Communications for Africa, at samantha.james@frost.com.

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Samantha James
Corporate Communications – Africa
P: +27-21-680-3574
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