Texaco Starring With Volvo

HOUSTON--Texaco is a star with AB Volvo as the two companies have signed a global lubricant supply contract covering research and development, initial fill, aftermarket and manufacturing plant lubrication.

Under the agreement, Texaco will become a preferred supplier of initial fill and aftermarket lubricants to Volvo, opening the way for Texaco to bid for country-by-country Volvo business around the world. In some markets, Texaco lubricants will be sold under the Volvo brand name.

Texaco and Volvo--one of the world’s largest producers of trucks, buses and construction equipment--will also work on cooperative lubrication research. Texaco’s European lubricant, coolants and fuels additives research and development department is located in Ghent, Belgium.

“Texaco’s technology driven lubricants and coolants business forms a perfect fit with AB Volvo’s image of high technology products,” said Scott Brown, president of Texaco Global Products. “Furthermore, Texaco’s strong environmental focus matches Volvo’s main ambitions identified in its annual environment report.”

“Volvo sets itself the highest technical, quality and environmental standards, and we expect the same from our suppliers, said Volvo’s Magnus Koch. “Texaco has an internationally recognized reputation as a manufacturer of lubricants and the commitment to excellence and cutting edge technology of Texaco’s Research and Development laboratory in Ghent, made the company an ideal partner for Volvo.”

The agreement, which follows a decision by Volvo to “rationalize and improve efficiency within its global lubricant supplier base,” will cover all manufacturing operation areas, including trucks, buses, construction equipment, marine and industrial power systems.

The two companies will evaluate the conversion of Volvo manufacturing plant lubrication business to Texaco including a program that will provide training to Volvo personnel working with Texaco industrial lubricant programs.