24 April 2012 16:54 [Source: ICIS news]
HOUSTON (ICIS)--Ashland has reached a five-year deal under which Russian oil firm TNK-BP will distribute Ashland’s Valvoline motor oils and lubricants in Russia, an executive for the US-based specialty chemicals firm said on Tuesday.
Samuel Mitchell, president of ?xml:namespace>
Prices for Valvoline in
The deal with TNK-BP is part of
In the fiscal second quarter ended 31 March, Ashland’s consumer markets business saw lubricants sales volumes fall 9% year on year to 40.7m gal, primarily because of weakness in the North American market.
However, the segment's sales rose 6% year on year, to $520m (€395m), as increased pricing outpaced rising base oil costs.
Mitchell added that
Going forward, base oil costs would continue to rise on the back of high crude oil prices, he said.
However, volatility in base oil should be reduced in coming years because of planned capacity increases, he said.
Base oil represents the largest raw material cost in
($1 = €0.76)
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