Sezgin Gürsu: We Will Continue to Concentrate on Our Target Markets and Sustain Our Traditional Leadership in 2025
Sezgin Gürsu, Director of Petrol Ofisi Lubricants, shared insights into the sectoral developments of 2024 with Lubricant World. Discussing Petrol Ofisi’s performance and future objectives, Gürsu provided evaluations of 2025 projects, including the bp acquisition, ongoing investments in Derince, corporate collaborations, and preparations for new product launches.
How was 2024 for the lubricants industry?
The lubricants sector is crucial to industries like maritime, aviation, agriculture, and energy production—essentially, wherever there’s movement. Our sector is influenced by economic developments and gauged through industrial production and GDP. Despite extended oil change intervals, factors such as population growth, vehicle sales, and industrial expansion usually balance this out, leading to an average annual growth rate of 2-3%. However, in 2024, sector growth fell below average, ending the year with a slight contraction.
The industrial slowdown in Europe significantly impacted Türkiye. In Türkiye, strong growth, increased demand, and investment interest were observed in the five months leading up to the elections. However, starting from the sixth month, interest rate hikes and rising inflation increased funding costs, tightened credit availability, and slowed the economy. This slowdown and decreased demand also affected stocks. The lubricants sector, which maintains stocks at all levels—from producers to distributors, retailers, and service centers—experienced a serious stock reduction as stocks became costly to fund. Additionally, the exchange rate effect in exporting sectors and the slowdown in Germany’s automotive sector impacted our sector. However, the record increase in vehicle sales over the last two years ensured that the market maintained a certain level of dynamism, which was positive for us.
How did Petrol Ofisi perform in 2024?
In 2024, Petrol Ofisi has maintained its traditional sector dominance. Our strategy in 2024 continued our long-standing approach, helping us gain market share and attract new corporate customers in targeted product groups. Collaborations with Texaco and Chevron marine products yielded satisfactory results, and the launch of our Adaptech technology brought positive outcomes. We formed a partnership with ISUZU for both first filling and after-sales, and renewed many collaborations, including those with KIA, SUBARU, and Hidromek. We are also excited to announce an upcoming partnership with a prominent construction equipment brand. In 2025, we will continue focusing on our target markets and sustaining our leadership.
The bp acquisition has been one of the hottest topics in the sector. How will this acquisition impact Petrol Ofisi’s lubricants business?
The acquisition of bp marks a pivotal moment in Petrol Ofisi’s history and is one of our most significant strategic moves. The customer portfolios and station networks of both companies complement each other exceptionally well, offering mutual benefits. There are valuable lessons we can learn from bp, and numerous contributions we can offer to enhance their practices. Our customers are the true beneficiaries of this acquisition. Additionally, this acquisition reflects our main shareholder’s confidence in Türkiye, which has significant potential in both the fuel and lubricants sectors. With 180 vehicles per 1,000 people, motorization in Türkiye is nearly one-third of the European average. For instance, in Germany, approximately 2 people share 1 vehicle, whereas in Türkiye, 10 people share 1-1.5 vehicles. This indicates substantial growth potential in the automotive sector. Considering Türkiye’s population, industrial infrastructure, and geopolitical strength, this investment is increasingly strategic.
From a lubricants perspective, Petrol Ofisi already has the most extensive distribution network with 1,950 stations, 30 distributors, their sales networks in the field, and our direct sales teams reaching corporate customers. Our market penetration is effective, and the acquisition of bp stations will further increase our influence. The transformation has already begun, and Petrol Ofisi lubricants are now available in over 100 stations. This rapid progress, achieved in just the second month without major promotion, showcases the trust in our products. The acquisition will enhance the visibility and availability of Petrol Ofisi lubricants. With the addition of 700 stations to our coverage, a strong synergy will be created, boosting morale and motivation for both our team and partners.
DescrIbIng the bp acquIsItIon as a hIstorIc turnIng poInt, Sezgin Gürsu asserts that Petrol Ofisi products, whIch have already penetrated the market, now enjoy sIgnIfIcantly enhanced vIsIbIlIty and avaIlabIlIty.
A significant investment was made in Derince in 2023, focusing on production capacity and storage areas. How was this investment’s impact in 2024?
Our investment in the Derince factory is a long-term project. In 2023, we completed the first phase, which involved enhancements to the logistics center and filling operations. This new investment resulted in a slight increase in capacity and alleviated the pressure on our three-shift operations. We also underwent significant digitalization, which led to improvements in service times, logistics, and storage conditions, thereby boosting customer satisfaction. During the second phase, we upgraded some of the filling lines, further increasing our capacity. Now, we are focusing on the production side, transitioning into a modern facility with advanced technological infrastructure, including fully digitalized control processes, automated blending units, and filling lines. Upon completion of the project, we will be one of the 10 largest lubricant factories in the world, with a capacity of 220,000 tons. This achievement will be a source of pride for us both in Türkiye and in our surrounding area.
The Investment In Derince, the fIrst phase of whIch was launched In 2023, has enhanced Petrol Ofisi’s capacIty, dIgItalIzatIon, and customer satIsfactIon. Upon completIon, Petrol Ofisi wIll boast one of the 10 largest lubrIcant factorIes In the world, wIth a capacIty of 220,000 tons.
What will be the priority agenda items for Petrol Ofisi in 2025?
At Petrol Ofisi, we are dedicated to developing products and services that meet the needs of today’s and tomorrow’s customers. As we look to the future, we ask ourselves, “Where will the automotive sector be in 5-10 years? How will technology evolve? What will future needs be?” and we invest accordingly. We offer a range of 400 products and nearly 1,000 SKUs, aiming to cover various market segments with our robust presence. We have two significant launches planned for 2025: 1) The motorcycle market is rapidly growing in Türkiye, with 5-6 million motorcycles currently in use and 1 million motorcycles sold annually over the past two years. We will complete our product line for motorcycle oils and collaborate with motorcycle experts. 2) Hybrid vehicles are gaining popularity among Turkish consumers. We will introduce our expanded product portfolio tailored for these vehicles.
One of our strategic goals has been to expand our export operations. Over the past two years, we have successfully increased our export volume by 50%, and we anticipate this upward trend to continue through 2025. The first half of the year is expected to mirror the conditions of late 2024. However, we are optimistic that the national economy will resume its familiar growth pattern in the latter half of the year. We remain vigilant of regional tensions, as international developments directly impact our industry. Despite these challenges, our outlook for 2025 remains highly positive. We wish our sector and stakeholders a year filled with growth and positive developments.
In 2025, Petrol Ofisi wIll launch new products specIfIcally desIgned for motorcycle oIls and hybrId vehIcles. We are confIdent that the momentum gaIned In export growth over the past two years wIll persIst.
