OREANDA-NEWS. November 21, 2012. After the success in Asia Pacific market, Pertamina Lubricants expands its market to European and African market through the inaugural export to Swiss and South Africa market, which has huge market potential for lubricant business, reported the press-centre of Pertamina.

"Swiss and South Africa are the 23rd and 24th export destination country for Pertamina lubricants. The inaugural export to Europe and Africa area shows that Pertamina lubricants are getting more recognition and acceptance in global market," said President Corporate Communication of Pertamina, Ali Mundakir.

The opening of European market through Swiss is affected by Pertamina Lubricants brand introduction effort through various marketing activities in Europe, including the Fastron Euroasia Expedition, World Rally Championship, and the participation of Pertamina-sponsored racer, Rio Haryanto.

The intensive export development activities in 2012 by the opening of some new markets also increase market awareness to existence of Pertamina Lubricants.

Riding on the momentum of market situation in Europe that shifting to combination of high quality, affordable priced products, Pertamina partners with Indonaldini Group Swiss - SA to start developing Pertamina packaged-lubricants market in Europe, with inaugural market in Swiss.

Swill offers advantages, including its custom tax and the multi-language capabilities of the marketing staff. They commonly speak four languages: English, German, Italian, and France, hence easier for them to introduce the product brand to the neighboring countries.

The European market itself is still very potential, particularly the West Europe market, reaching 5.2 million kiloliter per year, with the demand composition of 46% lubricants for automotive and the rest of lubricants for industry, marine and mining.

For initial step, Pertamina's premier products to be exported are the automotive lubricants, comprise Fastron Series, Prima XP, and Mesran, with the inaugural shipping of 2 container or 32,000 liter through Genova Port, Italy.

"The acceptance of Pertamina products by European market proves the competitiveness of Pertamina Lubricants in this very mature and highly competitive market. We will add more export product variants step by step and will soon move to industrial lubricants and marine lubricants," Ali said.

Meanwhile, Pertamina also sees the prospect of lubricant market in Africa region that experiences 2.6% annual demand growth with the current market potential of 1.8 million kilo liter per year. The biggest consumers of lubricants in Africa region come from Nigeria, South Africa, Algeria, and Egypt.

South Africa, with the country's achievement as the host of World Cup 2010, has substantial merket potential, reaching 300 - 400 million liter per year, and vehicle population reaching 2.1 million units. Assessment of South African market has been started since April 2002 through trade mission of Indonesian Ministry of Trade to South African.

The marketing collaboration will be conducted between Pertamina and National Plasterer Group, one of the main business groups in Cape Town by introducing Pertamina products in Cape Town and Western South Africa. The upper-hand of Pertamina Lubricants in entering South African market is the assurance of using high quality base oil, which is the main concer of consumers in South Africa.

For the initial phase, Pertamina ships 1 containers of products, including Fastron Synthetic-based products, Mesran, and Meditran SX 15W-40-based diesel lubricants. The total shipment volume is 12,000 liters.

Various strategies have been applied by Pertamina Lubricants in grabbing South African market, including using the BEE (Black Economic Empowerment) policy to collaborate with local businesses.

"The penetration to South African market will be the leverage in developing the market in other African regions," Alis said.