1.5 Lubricants

The business of lubricants involves the design, production, commercialization and customer service of oils and lubricant greases, as well as automotive specialties in the local and foreign market.

It is a competing business that, through its subsidiary company DUCSA, provides for the Commercial Chain of Gas Stations from ANCAP, Corporate Clients and Final Clients and, directly from the Commercialization Management of Energetic Businesses, to Official Clients (State Clients) and foreign clients.

At the same time, there are manufacturing and/or packaging by blending contracts with specific companies.

During 2015, ANCAP achieved the maintenance and modification of the certification for the design, production, commercialization and customer service of oils and lubricant greases, as well as automotive specialties in accordance with UNIT-ISO 9001:2008 standards. The UNIT-ISO 9001:2000 Quality Certification was obtained in July 2005 for the first time, guaranteeing the High Management's commitment as well as that of all the staff involved to comply with the defined quality policy.

In a highly competitive market where the evolution of technology favors a smaller consumption of lubricant per vehicle, the goal of the business in 2015 focused on achieving an adequate profitability without losing participation within the volumes of the local market.

Lubricant sales in the Internal Market have not experienced a growth during the year 2015 in relation with 2014, however, the leadership in the participation has been maintained. Exports and blending have shown a decrease in relation to last year, which was very pronounced due to the decline in sales through blending associated to tax and operational issues for the supply of ships.

There are negotiations for 2016 in order to supply ships through a local distributor, and rapidly resuming the deliveries and billing to said clients.

Regarding Lubricants Exports, during 2016 ANCAP will work on a sales plan to recover and increase the exports to the Paraguayan market, as well as engaging new clients.

In the market of Official Clients, we have successfully implemented sales using the connectivity of the network of Gas Stations of the ANCAP brand and DUCSA Distributor benefits cards.