SOCAR purchases Austrian filling stations network
Baku, Azerbaijan, Dec. 19
By Maksim Tsurkov - Trend:
SOCAR Energy Holdings (the Swiss subsidiary of Azerbaijan’s state oil company SOCAR) has purchased the filling stations network owned by Austria’s A-1 company, said a message posted on SOCAR’s official website Dec. 19.
SOCAR Energy Holdings purchased Pronto Oil company, engaged in the sale of petroleum oils, and thus entered the Austrian retail fuel market.
"To increase the amount of investments in the downstream sector, SOCAR Energy Holdings transfers some revenues received in Switzerland over the past five years into the investment projects, creates synergy with the investments made in previous years and increase the amount of investments,” the message said. “The main goal is to diversify sources of income in the future, use the potential of new markets and bring even more revenues to the Azerbaijani economy."
According to the message, SOCAR has recently expanded its dealership and supplier relations with medium-sized companies in Switzerland, uses a common card system and implements other various partnership projects.
"The purchase of the A-1 network, which is a well-known family business, in the Austrian market close to Switzerland, was the logical continuation and the next step of this expansion strategy,” the message said. “In total, 82 A-1 filling stations operate in Austria. A1 plays a leading role in the Styria fuel market. Meanwhile, 150 people are employed in the company."
SOCAR also purchased Pronto Oil Mineralolhandels GmbH, based in Graz city and engaged in trade.
"A-1 and Pronto Oil company established SOCAR Energy Austria Ltd to manage the network,” the message said. “The employees of A-1 and Pronto Oil companies will not be dismissed and will continue their activity in SOCAR Energy Austria. Taking into account that A-1 brand is already well-known in the Austrian market, SOCAR intends to use the purchased filling stations network under this brand."
Head of SOCAR Energy Holdings Edgar Bachmann expressed gratification with the new project.
"The purchase of A-1 network opens new horizons for SOCAR in Austria, creates new commercial opportunities and strengthens positions as a leading energy company in this country," he said.
SOCAR entered the Swiss oil market five years ago with a new approach that includes retail sales of high-quality goods that meet the needs of local customers.
Today, more than 63 percent of consumers in Switzerland recognize and appreciate SOCAR’s brand. SOCAR has expanded its dealer base in Switzerland and has established partnership relations with 15 dealers. Meanwhile, 5-10 more dealers are expected to join SOCAR’s brand in 2018.
Austria, a neighboring country of Switzerland having similar culture, is a strategic market for SOCAR. At the same time, the A-1 network is known as a highly reliable trademark in many parts of Austria.