Shah Alam, 29 Nov 2010 - The UMW Group today announced that UMW Lubricant International Sdn Bhd (ULI), a wholly-owned subsidiary in the UMW Group, has signed a principal agency agreement with Repsol YPF Lubricantes Y Especialidades, S.A. (REPSOL) for the appointment of ULI as the exclusive Principal Agent to distribute the Repsol brand of lubricants throughout Asia. This includes the automotive, motorcycle and industrial lubricating oils and ancillary products excluding marine oils manufactured or sold by REPSOL. Two subsidiary agreements covering distributorship in China, Malaysia, Singapore, Brunei, Papua New Guinea and Myanmar were also signed. The signing of the agreements was timed to coincide with the final race of the prestigious MotorGP World Championship on Saturday, 6 November in Cheste, Valencia, Spain.

The agreements were signed by Datuk Syed Hisham bin Syed Wazir, President and Group CEO, UMW Holdings Berhad and Mr Pascual Olmos, Executive Director, Repsol Marketing Europe amidst a flurry of excitement at the Repsol booth on the MotorGP circuit. Other signatories were En Azhar Harun and Ms Suseela Menon, Executive Directors, UMW Corporation Sdn Bhd. Earlier, the famous Dani Pedrosa, a Repsol Honda team rider and runner-up in the 2010 MotorGP World Championship, had made a surprise visit to meet the UMW and Repsol management teams.

The initial term of the agreement is five years with options for further extensions to be agreed by the partners. Both partners have likened the deal to a ‘marriage’ where REPSOL has found the perfect strategic partner in UMW to help its market penetration into Asia as part of its international expansion plan. UMW, on the other hand, with its strong presence in Asia, extensive experience in managing partners and financial stability, has found a world class brand and committed partner in REPSOL.

Mr Pascual Olmos said, “REPSOL is happy to have found a strong and suitable partner in UMW for our expansion plans for Asia, and we are looking forward to other collaborations with UMW in the future.”

Datuk Syed Hisham Syed Wazir remarked, “We are very happy with this alliance with Repsol. Like in any marriage, the first year is the most important, where each partner gets to know one another better so that they can, together, weather any challenges they may face in the future.”

Sales of Repsol lubricants are expected to reach 20,000 tonnes per year by the end of the five year period, equivalent to more than 25% of REPSOL’s annual sales of these products in Spain. REPSOL currently markets its lubricants directly and through distributors in over 60 countries in America, Europe and Asia. In that continent, the company is present in Indonesia, Japan, Philippines and Taiwan, where it produces and distributes locally.

REPSOL is Spain’s largest integrated oil and gas company with principal operations in Latin America, the Middle East and North Africa and other operations in over 30 countries in upstream, downstream and LNG businesses. Its involvement in the upstream and downstream businesses offers future opportunities for collaboration with UMW in these areas in the future.

The UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth. It is involved in four core businesses – Automotive, Equipment, Manufacturing and Engineering and Oil and Gas.

In adopting the rallying call Beyond Boundaries, UMW is set to play a leading role in shaping the future of its industries globally. The Company will do this by inspiring vibrant ideas, nurturing potential, pioneering partnerships and delivering excellence in everything it does; the rewards of which will contribute to the progress and well-being of its stakeholders.