Saneg Announces Acquisition of Oil and Lubricants Producer CGC Lubricants Italy

TASHKENT, Uzbekistan, Feb. 14, 2024 /PRNewswire/ -- Sanoat Energetika Guruhi (Saneg), Uzbekistan's largest privately-held oil and gas company, has announced the acquisition of CGC Lubricants Italy, an Italian producer of high-quality automotive and industrial oils and lubricants. This acquisition marks a significant step forward in Saneg's expansion into the European market and strengthens its position as a technological leader in the lubricants industry.

In addition, CGC Lubricants Italy has finalised a strategic cooperation agreement with SEG Motol, a Saneg subsidiary that is a leading manufacturer of technical oils in Uzbekistan.

Bakhtiyor Fazilov, Chairman of the Management Board of Saneg, said:

"This acquisition is a significant landmark in Saneg's ongoing business expansion strategy. The synergy between the two companies will not only expand Saneg's reach into the European market but also solidify its position as a technological leader in the lubricants industry within Uzbekistan and Central Asia. The acquisition aligns with Saneg's commitment to continuous innovation, operational excellence, and sustainable development, driving the company towards becoming a global leader in the lubricants sector."

Tulkin Yusupov, Saneg's CEO, said:

"CGC Lubricants Italy's expertise in developing and producing high-performance lubricants will be instrumental in enhancing Saneg's oil production capabilities. The company's Bari plant houses a fully accredited R&D laboratory, which is continuously innovating and developing a wide range of new lubricants. This expertise will be integrated into Saneg's Fergana Oil Refinery (FNPZ), leveraging CGC Lubricants Italy's advanced technologies and know-how to elevate the production of lubricants in Uzbekistan."

Highlights:

• Saneg acquires CGC Lubricants Italy, an Italian producer of automotive and industrial oils and lubricants.
• The acquisition expands Saneg's footprint into the European market and strengthens its position in the lubricants industry.
• The acquisition will enhance SANEG's ability to supply high-tech lubricants to the Uzbek and European markets.
• The synergy between Saneg and CGC Lubricants Italy positions Saneg as a technological leader in the lubricants market of Central Asia.
• Uzbek SEG Motol, a subsidiary of Saneg, forms strategic partnership with CGC Lubricants.

Saneg's acquisition of CGC Lubricants Italy brings together two established players in the lubricants industry. CGC Lubricants Italy boasts a state-of-the-art production plant in Bari, Italy, employing 19 skilled professionals, and a commercial office in Rome with 11 employees. The company's production processes are highly automated, ensuring efficiency and consistency in the manufacturing of over 200 types of lubricants. The company's Bari plant includes a fully accredited research and development (R&D) laboratory, continuously innovating and refining formulations for a wide range of lubricants.

CGC Lubricants Italy will serve as a strategic supplier of high-tech commercial lubricants to FNPZ, ensuring a seamless supply of essential lubricants to the Uzbek market and beyond. Within three years, Saneg aims to fully localize the production of CGC Lubricants Italy's products in Uzbekistan, further strengthening its domestic manufacturing capabilities.

The acquisition also provides Saneg with a substantial share of the Italian and European lubricants market, as Saneg will gain immediate access to CGC Lubricants Italy's extensive distribution network across Italy, France, Spain, and Portugal, where up to 26 thousand tons of products are supplied annually.

SEG Motol's agreement with CGC Lubricants Italy will enable a collaboration encompassing scientific, technological, commercial, and marketing spheres. Key elements include sharing expertise in lubricant formulations and production technologies, as well pursuing European safety certificates for FNPZ-produced base oils to enable their utilisation in the production of commercial oils and lubricants.

The agreement also extends to joint marketing initiatives aimed at promoting the Saneg and SEG Motol brands across Uzbekistan, Central Asia, Italy, and the European Union.

About Saneg

Sanoat Energetika Guruhi (Saneg) (Jizzakh Petroleum until November 2021) was established in 2017 with the aim of expanding the country's production capacities for the deep processing of hydrocarbon raw materials and the production of high-quality petroleum products, as well as increasing the export potential of Uzbekistan's oil and gas industry.

Saneg is Uzbekistan's largest private oil and gas company which owns the subsoil rights to 103 deposits for geological exploration and extraction, and which accounts for about 80% of oil production in the Republic of Uzbekistan. The company employs over 5,000 people. The production facilities of the company are in Karshi, Mubarek, Fergana and Andijan.

About CGC Lubricants Italy S.p.A

CGC Lubricants Italy S.p.A. is a leading Italian company with three decades of experience in the lubricants industry, specializing in the production and sale of oils and lubricants. The company's production facility is located in Bari, while its headquarters are situated in Rome. CGC Lubricants Italy manufactures a comprehensive range of oils and lubricants that meet the stringent requirements of European automotive manufacturers and producers of modern industrial equipment.

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