Despite setbacks on account of Covid-19 lockdowns and economic downturns in South Africa, lubricants distributor African Group Lubricants (AGL) has boosted its operational capacity by 500% through the acquisition of the CERA blending facility in Boksburg, in Gauteng.

The acquisition follows a long-term commitment with global market leaders ExxonMobil Lubricants and Quaker Houghton, and has secured future growth opportunities for AGL.

“The long-term commitment from our principals cemented the investment case for the acquisition of the CERA plant,” says AGL MD Mark Kerwan.

The facility has enabled AGL to embark on more projects and has made manufacturing processes more efficient, with the plant being one of ten ExxonMobil globally certified independent blending facilities.

The advanced lubricant blending facility is independently owned, ISO 9001:2015- and ISO 14001:2015-certified, and is accredited according to ExxonMobil’s global quality standards, with Kerwan noting that ExxonMobil is “stringent” regarding quality and processes concerning safety in the blending of their products.

Hence, AGL sales manager LR Botha assures that the lubricants produced by AGL meet global industry standards.

“A lot of work was done by AGL to ensure that the blending facility was up to standard to get it ready to embark on local blending of ExxonMobil’s products. Quality and safety are crucial aspects of our operation,” says Kerwan.

The CERA plant has also enabled AGL to increase its product portfolio by manufacturing lubricants locally, which has, in turn, allowed for an increase in employment and workforce numbers.

Kerwan says the company aims to further boost its workforce by 10% in the next year.

In addition to being awarded the rights to manufacture automotive lubricants in South Africa by ExxonMobil, AGL has also been granted local blending rights on certain product ranges for the mining, construction and agricultural sectors, into which the company plans to expand.

Therefore, AGL plans to stimulate local economies by creating employment opportunities and further cementing its position as a “leading player” in the lubricants industry, locally and across Southern Africa.

With a “proven track record”, a growing market share and the capabilities to expand its operations, the company is well positioned to achieve its growth objectives, Kerwan enthuses.

He notes that increased capacity, skills and products position AGL as one of the leading suppliers of premium lubricants, greases and industrial fluids in Southern Africa.

Kerwan says that AGL will expand into new territories in Africa to supply ExxonMobil products into countries such as Mozambique, Botswana and the Democratic Republic of Congo, with Quaker Houghton also looking to expand its reach.

“We are finalising and appointing some distributors in these areas that will represent the ExxonMobil product range, with Quaker Houghton potentially doing the same,” says Kerwan.