YPF completes Brazil sale, retains lubricant brand presence

In alignment with its “4×4 Plan” and broader strategy to refine its business portfolio, YPF SA has announced the sale of its lubricants subsidiary in Brazil, YPF Brasil Comércio de Derivados de Petróleo Ltda, to Usiquímica. The Brazilian company, boasting more than 80 years of experience in the production and distribution of chemical products, will take full ownership of the subsidiary.

Founded in 1998, YPF Brazil has been a notable player in the country’s lubricants market, operating its own production facility since 2015. The plant has a historical production capacity of 48,000 cubic metres annually, accounting for a market share of approximately 2% in Brazil.

The agreement also includes provisions for a licensing arrangement that will allow YPF-branded lubricants to continue being sold in the Brazilian market, ensuring the company’s presence in the region remains intact.

This divestment is part of YPF’s ongoing efforts to optimise its portfolio, with a focus on enhancing profitability and efficiency. At the same time, YPF is steering its strategy towards the energy transition. As part of this shift, the company has established a new vice-presidency dedicated to driving a long-term strategic plan centred on renewable energy and sustainability.

YPF’s “4×4 Plan” is an ambitious strategy introduced by CEO Horacio Marín, aiming to quadruple the company’s value over four years. Through the 4×4 Plan, YPF aspires to position itself as a leading shale operator globally, contributing significantly to Argentina’s energy sector and economic growth.

Key subsidiaries such as YPF Luz, Mega, and Profertil are expected to play pivotal roles in this transition, reinforcing YPF’s commitment to adapting its business model to meet the evolving demands of the global energy sector. The move highlights the company’s intent to create sustainable value while embracing the ongoing transformation of the energy landscape.

Usiquímica, headquartered in São Paulo, Brazil, is a trailblazer in the production of ammonium hydroxide and the importation of hydrofluoric acid. In 2012, the company expanded into the automotive industry by beginning production of diesel exhaust fluid (DEF), marking a pivotal step in its diversification. This journey reached a significant milestone with a brand licensing agreement with Valvoline, granting Usiquímica exclusive rights in Brazil for the manufacture, import, distribution, and promotion of Valvoline products. Under this partnership, Usiquímica oversees all aspects of sales, marketing, business strategy design and execution, as well as day-to-day commercial and after-sales operations. This collaboration strengthens Usiquímica’s foothold in the Brazilian automotive market, solidifying its role as a key industry player.