GS Caltex to mark the key milestone of exporting its LO Blending Technology for the first time. 

GS Caltex seized the opportunity to export its lubricant blending technology for the first time. Exporting lubricant technology refers to the export of ‘blending recipes’ to produce lubricants. Shall we look into the technology export case in which GS Caltex signed a Technology License Agreement with Karam to export its LO Blending Technology?

- How did it go?

GS Caltex has been investing in the Middle East market since 2015. In particular, Iraq is one of the major importers of lubricant oil. GS Caltex's sales of lubricant products in Iraq more than tripled in 2019 compared to 2015. Finished Lubricants Global Sales Team 2 seized a new business opportunity of exporting lubricant technology to Iraq earlier this year and had put it into action by quickly holding a meeting with the chairman of Karam. 

Karam requested GS Caltex to export technology for 15 lubricant products. Among them, GS Caltex had developed new technologies for one product. The lubricant technology development team was able to satisfy customer needs by completing the development of high-quality lubricant products using GS Caltex's main base oil in a short period of time. As a result, GS Caltex could agree on a LO Blending Technology License Agreement for the first time.

- Were there any difficulties during the process?

Lubricant oils are produced by mixing the base oil with additives to improve performance. GS Caltex suggested using the company's representative base oil as a material to produce high-quality lubricants. Of course, the process of explaining the superiority of the company's products and convincing Karam to use its base oil was not an easy one. However, in cooperation with the relevant departments, the superiority of quality was proved, and as a result, GS Caltex could export technology for the production of high-quality lubricant products. 

- What positive results did it bring to the company?

With this Technology License Agreement, GS Caltex will receive ‘Technical License Fee’ for the use of recipes for lubricant production from Karam for the next 10 years. In addition, GS Caltex will supply its lubricant products until commercial operation of Karam’s lubricant oil blending plant in Iraq. Such Agreement has a great significance as GS Caltex has secured stable base oil export deals to the Iraq market. Based on this business opportunity, GS Caltex plan to expand its business in the Middle East.

-Tell us about your feelings

We believe that this achievement of Technology License Agreement is the result of the company member’s prompt ability to execute and the passion to create results. In particular, it can be said that this is a result of the joint efforts of related departments, business partners, and local partners.

As it was the first attempt, there were many difficulties until the conclusion of the Agreement. However, we were able to achieve great results by investing a lot of time and effort based on our progressive attitude, responsibility, and mutual trust.

Whenever we seize any business opportunities in the future, we will take on challenges without giving up through preemptive and quick execution. This case is a business model that made us feel that all possibilities are open as long as we do not give up making success for the company. 

I am glad that the lubricant business division and KIXX lubricant products and technology have contributed to the company's reputation as a top lubricant exporter. We will always put in a lot of effort to enhance the export competitiveness of the company.