American auto firm Valvoline expands into Turkish market with M Oil partnership
GuzelEnerji & Valvoline after the press conference, Mahmut Cil (Left), Andrew Peterman (Center), Yuksel Yilmaz (Right), Izmir, Türkiye, October 8, 2024 (Photo via GuzelEnerji)
American retail automotive services company has announced a strategic collaboration with M Oil, a subsidiary of OYAK Group Companies and a key player in Türkiye’s energy sector. The partnership aims to boost Valvoline’s presence in the Turkish market, with production now taking place at M Oil’s factory in Izmir under Valvoline’s license.
This cooperation is expected to drive not only growth within Türkiye but also in the broader regional markets. Operating in over 140 countries, Valvoline is positioning Izmir as a regional production hub.
Historic launch at Smyrna’s Agora
The collaboration was officially announced at a press event held in the historic Smyrna Agora in Izmir. Attendees included OYAK Energy Sector Group head Yuksel Yilmaz, GuzelEnerji General Manager Mahmut Cil, and Valvoline Europe General Manager Andrew Peterman.
Yilmaz highlighted the rapid growth M Oil has experienced over the past four years and emphasized the significance of Valvoline’s 150-year history, stating, “Our partnership with Valvoline will further strengthen our position in the sector.” Yilmaz expressed pride in producing in Izmir, marking a new chapter for both companies.
Sustainable growth and innovative solutions
In his speech, Yilmaz also underscored OYAK’s commitment to sustainable growth, efficiency, and innovation. He stressed that OYAK’s energy companies provide eco-friendly and innovative solutions to meet Türkiye’s energy needs.
“As our CEO Suleyman Savas Erdem has often emphasized, the energy sector is a strategic priority for OYAK. Beginning production with Valvoline in Izmir reflects these strategic priorities,” Yilmaz stated. He added that producing Valvoline’s 25 premium products locally is a significant source of pride for the region and Türkiye.
GuzelEnerji’s expanding investments
GuzelEnerji General Manager Mahmut Cil emphasized that since M Oil joined the OYAK Group in 2020, the company’s growth in the sector has accelerated. Cil described the licensing agreement with Valvoline as a critical step in this expansion.
“Bringing Valvoline’s innovative and high-quality product portfolio to the Turkish market is a strategic move for us,” said Cil.
He also revealed that 25 different Valvoline products are now being produced in the Izmir factory, ranging from automotive to industrial lubricants, with plans to export these products to Turkish Cyprus and neighboring countries. Cil mentioned a new factory investment is in the works, further solidifying Izmir as a production hub for Valvoline.
Market share goals by 2028
Cil also disclosed that Valvoline aims to achieve an 8% market share in Türkiye’s lubricants market by 2028.
“We plan to reach a 3% share in Valvoline-branded lubricants. Our growth will not be limited to Türkiye but will extend to strategic regions such as the Middle East, Africa, and the Turkic Republics,” Cil added, noting that the company’s goal is to secure a strong position in the lubricant market.
Valvoline’s global vision and Türkiye’s strategic role
Valvoline Europe General Manager Andrew Peterman emphasized Türkiye’s importance in Valvoline’s global strategy.
“Valvoline is a brand known for pioneering innovation, and our partnership with OYAK will enable us to further expand this vision in Türkiye,” said Peterman.
He also highlighted Valvoline’s expertise in automotive and industrial solutions, pointing to the new licensed production agreement with OYAK as a testament to the company’s innovative approaches. Peterman added that Türkiye will play a key role as a production hub for Valvoline, particularly as the company focuses on sustainability and energy transformation.
Strengthening region through partnership
The partnership between M Oil and Valvoline is set to enhance not only Türkiye’s market but also create significant production and export opportunities for the region. With over 150 years of experience, Valvoline’s global reach, combined with M Oil’s local expertise, will increase competition in the lubricant market. The production hub in Izmir will solidify Türkiye’s strategic position while the two brands focus on sustainable growth and energy solutions.
This collaboration is poised to strengthen Valvoline’s presence in Türkiye and beyond, setting the stage for a new era of innovation and expansion in the energy sector.
