Texaco Signs Global Lubricants Supply Agreement With AB Volvo
22 December 2000
Texaco Signs Global Lubricants Supply Agreement With AB Volvo
Business/Energy EditorsHOUSTON--Dec. 21, 2000--Texaco and AB Volvo today announced the signing of a global lubricant supply contract, covering the areas of 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 AB 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 AB Volvo, one of the world's largest producers of trucks, buses and construction equipment, will also work on co-operative lubrication research. Texaco's European lubricant, coolants and fuels additives research and development department is located in Ghent, Belgium.
Magnus Koch, AB Volvo's Purchasing Director NAP (Non Automotive Purchasing), commented, "Volvo sets itself the highest technical, quality and environmental standards, and we expect the same from our suppliers. 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 AB 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.
"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."
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.