Global Partnership with BMW
Burmah Castrol PLC
22 November 1999
BURMAH CASTROL ANNOUNCES GLOBAL PARTNERSHIP WITH BMW
Burmah Castrol plc, the international specialised lubricants
and chemicals group, today announces that it has entered into
a major partnership with BMW Group. The agreement comprises a
long-term global partnership between BMW Group and Castrol,
the world leading lubricants brand which this year celebrates
its centenary.
The partnership is one of the most significant technical,
commercial and marketing agreements ever entered into by
Castrol and covers six major elements:
* Castrol will become BMW Group's strategic lubricants
partner working in the area of R&D and leading to the
joint development of the next generation of lubrication
products. These will be designed to offer enhanced
performance and support BMW Group's new engine
development and manufacturing processes.
* Castrol will become the recommended lubricant for BMW
cars and motorcycles, Rover, Land Rover, Mini and MG.
Most of these marques - which accounted for sales of
approximately 1.2 million vehicles in 1998 - will be
filled with Castrol as they leave the production line.
Thereafter, BMW Group will recommend Castrol in service
literature, driver handbooks, marketing communications,
and prominently on vehicle engines.
* BMW Group will out-source its lubricants business to
Castrol. As such, the BMW Group will recommend that
Castrol products are used in their approximately 3,500
dealerships worldwide. In addition, Castrol will source
and market BMW branded lubricants.
* Castrol Industrial will become BMW Group's partner in the
provision of advanced industry products and services to
all BMW Group production plants, leading to the joint
development of advanced technical fluid management
solutions.
* Castrol will collaborate with BMW Group and their dealers
in supporting after sales service with the aim of
enhancing service efficiency and improving customer
benefits.
* Castrol has reconfirmed its commitment to Formula One by
partnering the BMW WilliamsF1 Team and other BMW
motorsports activities. Castrol will provide technical
assistance on the race track and in test programmes, and
will supply all lubricants products to the BMW WilliamsF1
team. In return, it will receive significant branding
and marketing rights.
BMW Group expects to derive significant business advantages
from the agreement in the form of bringing R&D benefits to
customers more quickly and increasing the efficiency of
manufacturing through fluids management and the application of
new production techniques. In return, Castrol will benefit
from significantly increased sales volumes, as well as
substantial brand promotion opportunities worldwide,
supporting its existing £110 million annual marketing spend.
Both BMW Group and Castrol will also benefit from the
considerable technical and R&D opportunities that will arise
from the partnership.
Mike Dearden, executive director of Burmah Castrol and chief
executive of Castrol, commented: 'This is an association of
two of the world's most powerful automotive brands. The BMW
values of performance, quality, technology and exclusivity
perfectly complement Castrol's image. Castrol's position as a
world-class brand is assured as we enter the next century.'
'Our two organisations rely on very similar values of
performance, quality, technology and innovation,' said Dr
Henrich Heitmann, member of the Board of BMW Group, Sales and
Marketing. 'Already Castrol and BMW work together around the
world in many ways. This new collaboration can only further
help to deliver mutual benefits to both our organisations.
BMW needs technical partners of the highest quality. Castrol
has the experience and technology to assist us to improve our
vehicles, develop more efficient production techniques and
work with our dealers to improve customer benefits.'
For further information, please contact:
James Alexander, 01793 452006
Corporate Affairs Director
Burmah Castrol plc
NOTES TO EDITORS
Background on Burmah Castrol
Burmah Castrol businesses market specialised lubricant and
chemical products and services on a worldwide basis. The
group has a turnover close to £3 billion and operating profits
of almost £300 million. It has over 150 subsidiaries
operating in some 50 countries and employs some 20,000 people.
Burmah Castrol is based around a series of international
businesses, each focused on the specific requirements of its
own market place but sharing common characteristics. Four of
the group's businesses trade under the Castrol brand name and
the remaining businesses operate in speciality chemicals.
Background on BMW
Since its founding in 1916 as an aircraft engine factory in
Munich, the production of the first BMW motorcycle in 1923 and
the first BMW car in 1928, BMW has grown to become one of the
few brand names instantly recognisable the world over.
Together with the brands Rover Cars, Land Rover, Mini and MG,
the BMW Group plays an active role in all major segments of
all key automotive markets around the globe. Last year was the
most successful ever for the company, which now employs
120,000 people, produces 1.2 million cars and more than 60,000
motorcycles a year and generates sales in excess of £20
billion annually.