Interview

As we approach the event, Julia Marinchenko, Director of CIS Base Oils and Lubricants Conference, asked Apu Gosalia, Vice President Sustainability & Global Competitive Intelligence and Christian Ohligmacher, Vice President, Central & Eastern Europe from Fuchs Petrolub, a few questions about the current situation of the European and Russian base oil and lubricant market.

Vice President of Sustainability & Global Competitive Intelligence
FUCHS PETROLUB
fuchs-logo
Fuchs Petrolub_Christian_Ohligmacher
Q. 1: How would you describe the current global economic situation regarding the lubricants market?

Apu Gosalia, Vice President Sustainability & Global Competitive Intelligence

Macroeconomics in general will continue to influence the global lubricant market development with a more or less strong correlation. Regional lube market dynamics of the past years in terms of quantity and quality will continue in mature markets, emerging markets and markets in transition.

Christian Ohligmacher, Vice President, Central & Eastern Europe

Economic development in different world regions and countries will continue to drive lubricants markets with a strong correlation. In addition, also technological developments have significant impact on quality and quantity of lubricants markets. Therefore, even in growing economies lubricants demand may not follow and can be even flat or declining.

Q. 2: In your opinion, what are the key opportunities and challenges in the European lubricant market?

Apu Gosalia, Vice President Sustainability & Global Competitive Intelligence

European lubricants market development will depend also on economic situation in Asia and development of energy prices. In Western Europe, demand will continue to decline, due to declining population, industrial production moving East and the continuous move to more quality lubricants. Lubricant companies in Europe can succeed, when focusing also on high-quality end of the market and towards Eastern Europe (Russia, Ukraine, etc.)

Christian Ohligmacher, Vice President, Central & Eastern Europe

In mature markets like Western Europe the quantity will continue to shrink and the trend to higher quality lubricants goes on. Requirements for sustainability, higher efficiency and regulatory standards give additional challenges to the lubricants industry. On the long run technological changes like increasing electro mobility or 3D printing will have a significant impact.

Q. 3: In your opinion, what are the key challenges in the Russian market for the base oil and lubricant manufacturers and marketers?

Christian Ohligmacher, Vice President, Central & Eastern Europe

Market participants in the Russian lubricants market have to cope on the one hand with the economic situation of their customers which in some cases is rather challenging. On the other hand, the market demands in many cases for state of the art technology in lubricants and cost effective solutions.

Q.4: In your opinion, what new technologies can change alignment of forces in the industry?

Apu Gosalia, Vice President Sustainability & Global Competitive Intelligence Sustainability

Along the dimensions of economic, ecological and social responsibility will remain a driving force in the lubricants industry. New technologies include the move to electro mobility, 3D printing and Industry 4.0

Q. 5: What is your assessment of the current situation in the Russian/CIS lubricants market?

Christian Ohligmacher, Vice President, Central & Eastern Europe

While Russia is the largest lubricants market in Europe its total volume has been declining in the last years as a result of the economic slowdown. At the same time the quality segment of the market is developing and still attractive for local players, international ones with local production as well as importers.

To meet Mr Gosalia and Mr Ohligmacher personally and address them your questions join us at the 5th CIS Base Oils and Lubricants Conference in Moscow, where Apu Gosalia presents a paper on Markets, macroeconomics & movements – a view on the global and CEE lube industry and his colleague Christian Ohligmacher will take part in a panel discussion with industry leaders.