What could be the main reason for a large corporate event, which brought together all regional Ukrainian representatives to the investor, the company of a British citizen? For the listener from the “presentation of the new packaging design” motor oils will seem undeserving of so much attention. But this is not the case.
Besides the fact that the largest Ukrainian manufacturer of lubricants Petrochemicals British AZMOL goes to metal containers, a reason to get together was to discuss the status of the Ukrainian market, achievements of the company in a rather competitive (at the expense of imported products) on the environment, as well as plans for the future.
The new packaging as a means of combating forgery
What are the realities of the Ukrainian market? According to official data of the State statistics service, up to 40% of its us engine oil is fake. This means that the issue of ensuring proper quality of products, supplied under the brand name of AZMOL British Petrochemicals, is a priority. Not to mention the fact that the drivers themselves have more trust in metal packaging (according to the survey, 65% of respondents said so).
Why is the so many counterfeit products? The answer is simple – it’s all about profit. The lack of proper control, as well as a significant potential benefit appears due to the difference between the value of the original oil and we made fakes, are pushing manufacturers of counterfeit drugs and continue to break the law.
To deal with this kind of situation in AZMOL decided seemingly simple method. Namely, the transition metal containers (because of the plastic tamper is much easier and cheaper). Why “seemingly”? Because simple this method can be called exactly to the moment until you see all the stages of the manufacturing process of such containers.
Designers AZMOL has made considerable efforts to unostentatious in its form canister of tinplate, was the best insurance against forgery for the buyer. The example result is one of the design elements of the packaging. For its production of the metal was coated with a special pattern in design which is used for hybrid gradient lacquer. What does it mean? AZMOL was the first manufacturer in Ukraine, which was able to realize on the packaging of its products gradual transition from glossy to matte varnish. During the presentation, chief designer of the company admitted that these items were the most difficult to implement, and so to forge them is really very, very difficult. Manufacturing packaging with this figure is not in Ukraine, and the profile of the plant in Turkey.
But if you still have doubts about the possibility to fake the original packaging oils AZMOL, here’s a few more facts. Telescopic cover with the neck is a product of the German company Bericap. Labels for jars are printed on Finnish material that uses the technology of dual coating. Finished products are Packed in branded corrugated boxes from corrugated cardboard with water-repellent impregnation. Designed for weight up to 100 kg, these boxes were developed together with a company from Austria.
A strategic advantage during the transition to metal packaging
The transition from plastic packaging is indeed an important and responsible decision for several reasons. The first is a minimization of reputational risks. After all, if the fake oil AZMOL becomes very difficult, it means that the potential Association of the brand with low-quality products will be minimized.
The second is the reduction of logistics costs (and hence lower prices for the end product). The fact that the canister with a volume of 1 liter was 21% smaller than its plastic predecessor, the 4-liter, or 27%, 5-liter by 25%. It seems that a little bit, but if you imagine a party with the number of cans in the tens of thousands, would be that the gain is substantial.
Third, nevertheless very important, is the environmental component of such solutions. Cans – is a fully recyclable product. And besides, the process of making metal containers – are much more environmentally friendly than the manufacture of plastic packaging.
The tolerances of car manufacturers as an indicator of recognition
For anybody not a secret: when it comes to changing the oil manufacturer, car owners are quite inert in the choice of a new brand. And so drivers need to persuade an additional, but no less significant evidence of the quality of a product.
AZMOL can boast of very significant victories in the field of recognition of quality. Because in 2018, the company received the official tolerances from Daimler (and 228.3 229.3) for use of the oils in Mercedes engines. And not only for cars but also for trucks. Check it’s not too much trouble, go directly to the official website with the list of oils tested concern.
Further – more. In 2019 approval was obtained from the concern VAG (504.00 and 507.00) for the use of engine oils in passenger car engines, including those with extended service intervals (the so-called LongLife Service).
Finally, more recently, on 4 February 2020 approval was received from Volvo Trucks, one of the world leaders in the production of heavy equipment for transportation. Oil AZMOL Famula M 10W-40 and Famula M 15W-40 got its place in the list of officially approved for use in Volvo trucks, Mack and Renault.
By the way, before this and the American diesel engine manufacturer Cummins has made the oil Famula M 15W-40.
But the official tolerance is not only a recognition of quality and even obligation. The fact that the manufacturer has the right to execute the arbitration function, making test purchases of oils and testing them. This means that the level of quality of the manufactured product is bound to be high constantly.
Indicative of success. Ambitious plans
Today, the capacity of the lubricant market in Ukraine is 260 tis. tons per year. Oils for passenger transport – 100 thousand tons, commercial vehicles – 60 thousand tons. The share of the agricultural sector – 50 thousand tons, the same need and the industrial sector. Moreover, in each segment, except the segment of industrial oils, the share of imported products is 50%. This means that the potential for development AZMOL British Petrochemicals is huge.
In 2018, the plant has produced 1,800 tons of lubricants. In 2019, the total reached 2,700 tons. This year the company expects to produce 5,000 tons. But the plans – not just the quantity. So, in may of this year scheduled to launch the largest in Ukraine laboratory of lubricants be used for independent analysis of products will not only AZMOL, but also other companies. We also plan to open a new production line and upakovketabl and greases for the food industry. Finally, to expand the range of its products, the company is going through brake fluid DOT 4 fluid and AdBlue.
The answers to the questions
In order not to leave unanswered the important aspects in the development of the company, Terry Dicken, the investor company AZMOL British Petrochemicals (one of the main investors, and also ideological inspirer of the company), completed the series of speeches and a press conference. The most important answers below.
— Who from manufacturers of lubricants do you consider direct competitors AZMOL?
— Our company aims at the world market. So we have to compete with the world’s best brands: ExxonMobil, Shell, Castrol. But we must also compete with smaller players, which, because of size can afford to reduce the price of the final product in the home market. It turns out that we have to compete with everyone. How? Producing the highest quality products (which we are), which meets the most stringent requirements. And thanks to our infrastructure, services and the laboratory (which we will launch very soon). Can ensure that the competition we are not afraid and ready to fight with any manufacturers in our industry.
— You claim that the production of oils AZMOL use only high-quality base oils and additives from renowned brands. How, then, could make the company’s products more accessible to buyers?
— The last three years, we collaborated with the producers of base oils and additives, as well as technologists from Europe and the United States. Indeed, the price of these products high. But we wins because in Ukraine production costs are significantly lower land rent is also cheaper. And the location of the plant (Berdyansk) makes it easy to serve the Ukrainian market. In addition, we have 11 large warehouses on the whole territory of Ukraine. Competitors importing products from abroad, such opportunities are not present.
— Which markets, in addition to Ukrainian, the company now supplies its products?
We are constantly expanding. Now we sell our oil in more than ten countries around the world. The first batch of products AZMOL was recently sent to the United States; on the markets of several countries of the European Union, we have gone quite a long time. In addition, we have recently received requests from China and South-East Asia and also from Africa. These requests came from people engaged in sales. They heard about our brand, they know about its quality. That is why they want to present it. I think when clients are looking for an opportunity to get our products, it is a big cost.