UK-based lubricant manufacturing company, Aztec Oils, has announced that their application for an investigation into the dumping of lubricants on the UK market has been accepted by the Trade Remedies Authority (TRA), a British government agency that exists to defend the UK against unfair international trade practices. Since the start of the Russian invasion of Ukraine in February 2022, Aztec Oils identified significant and increasing quantities of lubricants originating from the UAE and Lithuania sold at prices well below both manufacturing and import costs.
The low-cost products, distributed by SCT, Mannol and others in the UK, have put enormous strain on UK lubricant manufacturers who have struggled to compete. With the acceptance of Aztec Oils’ application, the TRA will now conduct a thorough investigation into this matter and has the power to recommend remedial measures to the UK Government to impose depending on their findings.
Managing Director of Aztec Oils, Mark Lord, commented: “We strongly believe that an equal and fair trading environment is essential to maintaining jobs, talent, and prosperity in the UK. This principle is echoed by lubricant manufacturers, their suppliers and customers, and other stakeholders throughout the UK.
“We believe the dumping of these products inflicts significant damage upon all UK lubricant manufacturers. The importing of products that are then sold significantly below both the cost of importation and the production cost of UK-manufactured lubricants has resulted in an estimated loss of revenue for UK lubricant manufacturers of up to £100 million in the last year. This unethical practice has led to severe repercussions within the UK lubricant industry, with numerous companies forced to undergo substantial operational and workforce streamlining”.
Evidence indicates that products imported into the UK from the UAE are being sold for less than 60% of their cost, raising questions about the sustainability of such business practices and intensifying the difficulties faced by domestic manufacturers. Additionally, there has been a staggering increase of 8,718% in UK imports of automotive engine oil from the UAE since 2019, and an increase of 63,879% in imports of hydraulic oil. These extraordinary surges underscore the magnitude of the issue and its impact on the UK market.
The imported products also raise concerns regarding the quality of lubricants. Aztec Oils, together with other lubricant manufacturers and stakeholders, have conducted extensive testing on a range of products originating from these sources and found many of them to fall short of recognised industry quality standards, posing potentially serious and detrimental effects to the end users of these products.
Mark Lord also commented: “As a responsible entity dedicated to ethical trading practices, Aztec Oils cannot ignore actions that significantly impact the industry, potentially endanger users, may undermine international sanctions, and perhaps support unlawful activities. We trust that the investigation will ensure all companies selling lubricants in the UK comply with international laws and sanctions, promoting a fair and just trading environment”.
Aztec Oils is working to raise awareness of this issue and its serious impact on the UK lubricant industry. They are urging other manufacturers, distributors, and end users who have also been affected as a consequence of this situation to participate in the investigations conducted by the Trade Remedies Authority. Details can be found here https://www.trade-remedies.service.gov.uk/public/case/AD0059/
Contact Information:
Beth Weeks
Marketing & Communications Manager - Aztec Oils
Phone: 07570 432880
Email: media@aztecoils.co.uk
Aztec Oils is one of the UK’s leading specialists in high-performance lubricant manufacture and distribution, with over 25 years of experience. With a complete range of specialist products, they pride themselves on being able to supply UK-manufactured lubricants for the most demanding applications whilst maintaining an exceptional level of excellence in both quality and performance.
