Grupa Lotos branches out

The Gdańsk-based fuel company Grupa Lotos has started the year with a number of investment projects. By 2010 the company wants to have market share of between 10 and 12 percent of the Polish market.

One of the means to achieve this goal is acquiring 12 petrol stations from Slovakian firm Slovnaft, which is moving out of the Polish retail market. The value of the investment is estimated at EUR 15 (zł.58) million. "We have received permission from the Office for the Protection of Consumers and Clients (UOKiK) to go ahead with this contract and we are currently negotiating the final terms," the president of Grupa Lotos, Paweł Olechnowicz, said. The company is also negotiating acquisition terms with Slovnaft's franchise stations.

Lotos is also expanding its Lotos Diesel Service (LDS) directed at providing cheaper fuel for corporate clients both private and state-owned. By the end of 2005 there were 192 LDS stations in operation. "This year we plan to invest a further zł.11 million in the project and open around 70 new LDS stations," Olechnowicz explained. Roughly half of the planned stations are to be launched in southern Poland. "We definitely want to be present in the south, especially in Lower Silesia and the Upper Silesian agglomeration. These regions amount to 40 percent of Poland's fuel demand," Olechnowicz said.

The company will also invest between zł.70-75 million in building a methyl ester production plant. The plant is to start operating in mid 2007 and will produce around 100,000 tonnes of methyl ester, which will be added to diesel fuel. Currently, Lotos produces a petrol biofuel containing alcohol. This makes up 31 percent of all gasoline fuels sold. "Biofuels are an important element of our strategy for expanding the budget fuel segment," Olechnowicz said.