Chevron Brands International LLC (Chevron) and AFAL Manufacturing Limited(AML) have signed a license agreement encompassing the production, distribution, and marketing of CaltexTM lubricants.
With the signing of this agreement, Chevron has strengthened its growing presence in East Africa and entrusted its operations to AML as a licensee.
The products will be produced and sold in Kenya then exported to Uganda, Tanzania, Rwanda, Burundi, and Democratic Republic of the Congo (DRC).
Caltex branded lubricants have been available in East African countries since 2013 through a distributor agreement with Africa Fuels & Lubricants Ltd (AFAL).
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.
The relationship seeks to leverage the synergy of Caltex’s strong brand strength and AML’s extensive market reach to successfully carve out a share in the competitive East Africa lubricants market.
“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,” said Douglas Rankine, GM Middle East & Africa - Fuels & Lubricants.
The success of this license agreement and the growing demand for lubricants in the region were major factors in building further the relationship between the Tristar Group and Chevron, and will realize entry into Tanzania as a new market for AML.
