Egyptian car assembler GB Auto has agreed an exclusive local distributorship deal with Gazprom Neft, the oil-producing arm of Russia's Gazprom, to expand into Egypt's lubricants market, it said on Wednesday.

 

"Egypt today has a huge economic potential. Its lubricant market is estimated at 400,000-450,000 tonnes and shows 4 to 5 percent annual growth," said Alexander Trukhan, General Director of Gazpromneft Lubricants in a joint statement.

 

"Operating in this market will let us not only widen the distribution map up to 40 countries, but strengthen our positions in the African markets."

 

Gazpromneft Lubricants holds 14 percent of the Russian lubricants market and distributes its products to Europe, Serbia, Ukraine, Belarus, Kazakhstan and Central Asia, according to its website.

 

GB Auto said it was planning to roll out Gazpromneft-branded products through its own distribution network as well as third-party distributors. The company could not immediately be reached to clarify when or in what volumes it would start selling the products.