(AUREA 2015 AWARD NOMINATION): Naftachem - Facility for fuel additives - adding

Novi Sad-based oil company, Naftachem started in April 2014 production of additive euro diesel of the latest generation in its derivative warehouse in Sremska Kamenica. AdiDizel is a mixture of top European additives, reliable fuel, modern technology and Serbian knowledge and work. Top additives in line with the latest German technology were mixed domestic diesel fuel in its own facility for adding additives and filtering of fuel where half a million euros were poured so Naftachem is the only one in Serbia which has automatic system for adding additives and fuel filtering on terminal in line with EU standards.

AdiDizel is euro diesel with special package of five additives. Clean motor provides lower consumption by increasing cetane number, prevents corrosion, separates condensed water, and removes sediment and decreases bubbling. It was confirmed that usage of AdiDizel results in engine power increase by 3,1%, specific fuel consumption decreases by 3,3%, and fuel usage also decreases emission of CO2 u by 4,33% on the average.

With AdiDizel production, Naftachem made premium quality fuel available to big consumers at the price not higher than the price of imported fuel. Namely, when in mid-2013, so-called dirty fuels such as lead gasoline and diesel D2 were removed from the market by the law, the offer of more than 400 private gas stations was reduced to two or three derivatives with gas. Before that, with the implementation of excise for fuel oil and bio diesel, these derivatives were no longer available at gas stations. At private gas stations, there remained empty tanks, free tanking places, half empty totems, etc. At the same time, gas stations of international companies had two derivatives of more premium quality to offer and since brands are protected and distributed solely within closed systems, it will not possible to get to these fuels so therefore they were in subordinated position. Unlike competitive products sold at our market and created globally in line with requests and standards of EU consumers, Naftachem outlines they made product taking into account only Serbian market specifics.

Customers of AdiDizela are private gas stations, shipping companies, bus transporters, agriculture companies, etc. As of April 18 last year, when the production started, more than 24 million liters of this fuel were sold.

INNOVATION

(Photo: Shutterstock.com)

AdiDizel was produced in Naftachem most modern derivative warehouse in Serbia, in Sremski Karlovci and the system for adding additives and filtering, EUR 500.000 were poured.

Naftachem is the only one in Serbia which has automatic system for adding additives and fuel filtering at terminal in line with EU standards. The system is featured with: electronic units for dosing of French company Satam, automatic system management, additive quality control and protection from degradation, self-warming automatic system which keeps and delvers additives at temperatures higher than 50 Celsius degrees, two pumps for every kind of fuel, working and reserve, which provide work without halts while filtering devices have Faudi Aviation filters with micro filters which constantly remove microorganisms from fuel as well as the smallest corrosion part, dust, sand and filters which completely remove any presence of water in fuel.

Naftachem is the only company in Serbia which does additive adding without bins and spouted cans but through system for additive adding where, with the pressure of nine bars, additive is placed into fuel when tanking into cistern where every liter which is tanked in a cistern is the same.

Unlike competitive products sold at our market and created globally in line with requests and standards of EU consumers, AdiDizel was made taking into account only Serbian market specifics. All brands of large companies were made for European framework and they are the same in every country where these companies operate in. Our market is specific, car fleet is worse and a buyer is not wealthy. Having in mind these specifics, Naftachem, in cooperation with world’s biggest additive producer, made recipe for Serbian market.

Top additives produced in line with the latest German technology were mixed with local diesel fuel. Leading expert of German company for additive adding (the contract implies they must not mention the name in public) personally came to the warehouses, checked technical options of Naftachem, met with the market situation and a recipe was done only for Naftachem (special diesel package of additives). They picked up local fuel for adding additives which was suggested by the additive producer after seeing quality of local and imported fuel since local one is not saturated with additives. Its usability due to density is a 100 percent one and it has 3 to 4 times sulphur less than imported fuel.

AdiDizel is euro diesel with special package of 5 top additives and is completely aligned with SRPS EN590: 2010 standard. There is summer and winter fuel option. With the existing 5 additives, winter AdiDizel is enforced with two special additives more for low temperatures ( one for low-temperature feature and the other one for paraffin dissolving at temperatures below 0) which guarantees easy engine function even up to minus 25 Celsius degrees. These winter additives are added to fuel in line with special recipe, at temperatures of 50 degrees and more, in Naftachem special automatic system for additive adding. This winter was the test for u AdiDizel winter option since temperatures went even below minus 20 Celsius degrees and there were no customers’ complaints.

SOCIAL RESPONSIBILITY

A package of additives which AdiDizel contains is positioned and accepted at the Serbian market. It is used in much smaller dosage than when it comes to traditional technologies, it cleans engine, prevents sediment, improves fuel economical aspect and completely renews engine power.

Before Naftachem started distributing the fuel, the Department for agricultural technique at the Faculty for Agriculture in Novi Sad carried out within the National Laboratory for power machines and tractors a comparative research of performances, fuel consumption and exhale gasses emission of AdiDizel, imported and local fuel. Research was carried out in line with OECD standard. The conclusion is that the usage of AdiDizel compared to two other fuel kinds, increases engine power by 3, 1% on the average while specific fuel consumption is decreased by 3,3%. Usage of AdiDizel decrease CO2 emission by 4,33% on the average. This experience conducted by famous scientists and the Faculty for agriculture, is available for public at the website adidizel.rs

AdiDizel contains a diesel package of additives which clean inhale valves, injection nozzles and entire fuel intake system from sediments and char remnants while at the same time it decrease friction inside the engine and provide top protection of metal surfaces from corrosion. AdiDizel increases engine power – cetane number and torque. It improves burning, guarantees better cold start and shorter time for engine start.

These additives provide complete fuel burning, without any remnants or sediments in motor. Opposite to that, additive-free fuel with high content of sediment in inhale motor system, which reduces engine power and motor length of work and increases fuel consumption.

Apart from clean engine, usage of AdiDizel provides lower consumption. AdiDizel decreases fuel consumption by 2% at least. With production of AdiDizel, Naftachem made premium quality fuel available to big consumers at the price which is not higher than imported fuel price. In Naftachem wholesale warehouse, one can buy it at the price which is even RSD 15-20 lower than the price of similar products in retail.

FINANCIAL POTENTIAL

Buyers of AdiDizela are private companies, gas stations, shipping companies, bus transporters, agriculture companies, etc. Marketing company which developed visual identity for Naftachem, during market research, noticed that nobody at gas stations offers premium derivatives by name which can be complicated but they simply ask if a customer wants ordinary or derivative with additives. Therefore comes the decision of Naftachem to have only generic name AdiDizel which makes the product easy to remember for all categories of customers.

The trust they have been building as a company during the past seven years helped them persuade customers to try something new. The company says that not a single buyer gave up after he bought AdiDizel for the first time which is their confirmation that they were right when they asked from German producer to make this kind of diesel package of additives.

The investment of EUR 500.000 in the system for additive adding has already shown it is profitable and sale of AdiDizel exceeds company’s expectations. The objective was to sell 8-10 million liters of this fuel by the end of 2014 and since the production started, in April 2014 until February 2015, 24 m liters for more than 170 customers were sold.

Some of the buyers of Adidizel are Pionir petrol, Almex, Gebruder Weiss, Bata, MK Grupa, Lagermax, Simtim, they have recently signed the contract with Milsped and as for now, it is available on some 60 private gas stations in Serbia.

They poured EUR 30.000 in advertising, including name selection, flyers and a few commercials on sports channels and two radio stations. Even with all the costs and the fact that in the first months they used promotional prices, they earned 50% more on AdiDizel then on ordinary diesel.

Naftachem d.o.o. is a company operating in import, storage and distribution of euro diesel and other oil derivatives. Their customers are gas stations, agriculture; international and local transport, road companies, industry and their suppliers are renowned world oil companies with which they have annual contracts. Oil derivatives delivery is carried mainly via river roads by Naftachem vessels. They have tanker fleet of 7 vessels, three self-propelled tankers and four lighters, with total capacity of almost10 thousand tons. Apart from boat transport and storage for its own needs, Naftachem also deals with storage for third entities. For a number of years, they have been official storage company for OMV and MOL which only confirms that Naftachem operates in line with modern European standards. Derivatives delivery to end customers from their warehouses at Ada Huja and Sremski Karlovci is done via their own auto cisterns.

Naftachem is trying to develop its business through new projects it has been diligently working on and definitely the most important one is oil terminal in Sremski Karlovci whose first two stages exceed EUR 20 m.

The most modern oil terminal in Serbia was built in line with the highest world standards in technical and technological sense and it has been put into operation in September 2013. The terminal storages larger number of oil derivatives and delivery and dispatch of goods is possible via river, road and after the stage two is completed, via railroad as well. The third terminal stage construction has also been planned which will circle the whole and enable the investment to become strategically important for connection of the region and the Black Sea region.

If Naftachem’s fuel additives adding facility is your favorite for the investment of the year, you can vote at the official Aurea award website .