Maravi

Kobil raises stake in Ndola-based lubricants firm

Kobil raises stake in Ndola-based lubricants firm
By Chiwoyu Sinyangwe
Wed 20 Jan. 2010, 04:00 CAT

KOBIL Zambia has raised its stake in Ndola-based lubricants blending firm Lublend through acquiring the 10.5 per cent stake previously owned by Chevron.

Kobil Zambia, which is a subsidiary company of KenolKobil, Kenyan oil marketer, said its lubricants business had grown by 47 per cent since 2008, fueled by increasing demand from the mining, industrial, transport and construction sectors.

Following the acquisition, Kobil Zambia's stake in Lublend has increased to 25.5 per cent after an initial acquisition of 15 per cent from Total Zambia in 2008. The acquisition was done with a blessing from KenolKobil.

And KenolKobil stated that move fitted in its strategy of diversifying its business in the region adding that the move would strengthen the company's market share in the robust lubricants business in the country.

“The new acquisition will give the KenolKobil Group more control of the management of the plant and will also give it more representation in the company's board,” the firm stated.

“The move will strengthen the company's market share in the robust lubricants business in Zambia.”

Commenting on the development regional support manager Patrick Kondo said the additional shareholding in Lublend Limited would help KenolKobil to get more control in the blending company.

Kondo said the move would strengthen the company’s market share in the lubricants business in the country and was in line with their diversification strategy.

He said the approach had seen the company nearly double its retail network in Zambia to over 25 within the last two years.

“The new acquisition will give the Group more control of the management of the plant and will also give it more representation in the company’s board,” Kondo said.

“Together with its recent entry into supplying the mining sector, Kenol Zambia is seeking to consolidate its market position as the number three oil company in Zambia.”

Kondo disclosed that there were plans to intensify Kenol Zambia’s interests in the mining sector within the Copperbelt region and help it reduce the dominance by the multinational oil companies.

“Kenol Zambia is looking beyond the Zambian borders to the export markets of the Lubumbashi area of DR Congo, Zimbabwe and Malawi,” said Kondo.

In the third quarter of last year, the Nairobi-based company assumed effective control of its subsidiary in Burundi making it the seventh member in the KenolKobil Group.

Labels: BUSINESS, KOBIL ZAMBIA LTD

posted by MrK @ 5:19 AM