Burmah Castrol PLC
28 February 2000
BURMAH CASTROL PARTNERS HYUNDAI MOTOR COMPANY
IN THE WORLD RALLY CHAMPIONSHIP AS THE BEGINNING OF
A GLOBAL BUSINESS PARTNERSHIP
Burmah Castrol plc ('Burmah Castrol'), the international
specialised lubricants and chemicals group, announces a
strategic partnership between Hyundai Motor Company and
Castrol, which includes sponsorship of the Hyundai Castrol
FIA World Rally Team.
The agreement between Castrol and Hyundai, initially
comprising a three year global partnership, will cover the
following areas of activity:
* Castrol will become the strategic lubricant partner to
Hyundai and a preferred supplier of lubricants worldwide.
* Castrol will work with Hyundai to develop new Castrol
products specifically for the initial fill for
Accent/Verna models and motorsport vehicles. Castrol
will work together with Hyundai to develop new lubricant
technology suitable for the next generation of Hyundai
engines and to ensure these technical benefits and
efficiencies are passed on to customers.
* Following technical collaboration and approval, Hyundai
will also provide appropriate Castrol recommendations in
service literature, driver handbooks, marketing
communications, and prominently on vehicle engines.
* Castrol has become the title sponsor of the Hyundai FIA
World Rally Championship team for a three year period
from 2000 to 2002. Castrol will provide technical
support and supply all lubricant products to the team and
in exchange will receive significant branding and
marketing rights. The Hyundai Castrol FIA World Rally
Championship team made a successful debut in Sweden
earlier this month, with an encouraging performance.
Hyundai expects to derive significant business advantages and
efficiencies from both the sponsorship activity and the wider
partnership agreement in the form of R&D and technical
benefits it can pass directly on to customers. Castrol will
benefit from enhanced brand exposure and increased sales
volumes, most particularly in Korea where Castrol currently
has a relatively small market share.
From a customer perspective, the co-operation between Castrol
and Hyundai should lead to improved lubricant technology and
performance, as well as cost efficiencies.
Castrol and Hyundai will also benefit from the substantial
brand promotion opportunities worldwide afforded by the joint
promotion of the partnership and from the Hyundai World Rally
Car team sponsorship, supporting Castrol's existing £110
million annual marketing spend.
The partnership with Hyundai follows Burmah Castrol's
announcement in November 1999 of a major long-term global
partnership with BMW Group which in turn included sponsorship
of the BMW Williams F1 team.
Commenting on the Hyundai partnership, Mike Dearden, Chief
Executive of Castrol, said: 'This important partnership is
further evidence of the value added relationships we are
building with the world leading automotive manufacturers. The
agreement goes far further than sponsorship and joint
marketing opportunities. It will enhance both our brand
exposure and our sales volumes internationally whilst allowing
us to work more closely with Hyundai to improve customer
benefits. In particular it gives us an important opportunity
to strengthen Castrol's position in the fast growing Korean
market.'
For further enquiries, please contact:
James Alexander, Corporate Affairs Director,
Burmah Castrol plc 0171 499 9533
Sharon Ostaszewska, External Relations,
Burmah Castrol plc 01793 452946
Rachel Hirst/Harriet Keen,
Hogarth Partnership Limited 0171 357 9477
A copy of this release plus further company information is
available on our website: www.burmah-castrol.com
Notes to editors:
Note 1
Burmah Castrol businesses market specialised lubricant and
chemical products and services on a worldwide basis. The
group had a turnover close to £3 billion and operating profits
of some £283 million for the full year 1999. It has over 150
subsidiaries operating in some 55 countries and employs some
18,000 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.
Castrol is a wholly owned member of the Burmah Castrol group
of companies.
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