7 minute read
Staying fluid in an ever-changing world
AZTEC OILS I PROFILE
As one of the UK’s largest independent manufacturers and distributors of high-performance lubricants, Aztec Oils has grown considerably on the global stage in recent years. Founder Mark Lord told Andy Probert the reasons why he remains deeply committed to playing the long game to ensure his company continues to thrive.
Aztec Oils is, just like its lubricants, renowned for high-performance, efficiency, reliability, and an ability to withstand the rigours of the harshest environments.
Founder and Managing Director Mark Lord has transformed the business from one man-in-a-van selling 100 litres a week in 1995 to a £30 million company, employing 110 people and processing 30 million litres of high-quality lubricants a year.
Job done? “No, not by a long way,” smiled Mr Lord. “I could have sold the business and walked away with a bundle. But I am not like that; the industry is in my blood, and I build for the long-term.”
Mr Lord is a man not afraid to match words with actions. In 2019, he handed 50.01% of the growing business to the employees through an Employee Ownership Trust. A win-win for all concerned.
“I am a strong believer in people and developing their skills, so enabling them to take a stake in the business through the EOT is a step in the right direction. As the business grows, so does the potential for
the staff,” he said. “For me, it is all about people. With the right people, you can achieve so much more.”
Today, Aztec Oils is one of the UK’s top three independent lubricant manufacturers and suppliers, operating from a central hub at Bolsover Business Park, a former colliery, in Bolsover, Derbyshire.
Investment and expansion
The company has around 500 different lubricants, including biodegradable, coolants, and antifreeze, available to a wide range of industries – primarily automotive, but also agriculture, hydraulics, industrial, marine, metalworking, motorcycling and transmission.
Business growth for Aztec Oils has been complemented by a series of acquisitions and investments over the past six years. In 2016, the company, which manufactured the Goldline lubricant range for Northern Oils, acquired that lubricant division and transitioned it into Aztec’s Scottish trading arm.
In 2017, Aztec Oils embarked on a £1.2 million three-year upgrade of its Bolsover site. This included a new 11,000 sqft warehouse, centralising manufacturing from its former West Midlands base, and purchasing the latest laboratory tech to help verify all manufactured products meet the highest compliance levels.
Two years ago, the business acquired the lubricant, pre-packaged fuel and
AZTEC OILS I PROFILE
contract packing business of Multispec, formally Caldo Oils. It bought Caldo’s manufacturing facilities in St Helens, Merseyside, which produces the Hallet Steam Oils brand, and distribution operations in Devon and North Wales.
Mr Lord said: “The acquisition was seen as a great opportunity to develop our retail packaged range, offering both Aztec’s branded products and growing our private label offering. It also enabled us to expand our offering to existing customers, and reach new markets with new products.”
While the company has engineered a recent rebrand to help drive product growth, other investments have included expanding its tanker fleet to cope with moving over 150,000 litres per day for bulk transport, and adding new storage tanks at Bolsover, enabling the business to hold over 2 million litres of base oils, additives and finished products.
Export focus
An increasingly important growth area for Aztec Oils has been the export trade. It established a distribution centre in Lithuania to supply products to the Baltic States, Poland and Scandinavia. It also has the capabilities to manufacture the product range for clients in Europe.
Mr Lord said that with further consolidation and exposure to new markets, Aztec Oils now exports to the likes of Pakistan, China, Taiwan, Thailand, Iraq, Jordan, Lebanon, Egypt, Ghana, Nigeria, Peru, Colombia and the Dominican Republic. Exports presently accounted for about a quarter of all trade, which was likely to increase in the coming years.
“We operate through distributors and have done so successfully, and will continue to expand to new countries every year,” Mr Lord affirmed.
In 2018, Aztec Oils bought Netherlandsbased Oil Water Treatment (OWT) Services, a global oil field chemical service company. OWT’s chemicals are supplied to the oil and gas producers, related traders, oil recycling industries, and companies with wastewater plants.
Aztec Oils’ turnover reached £26.5 million in 2020, with £5 million generated from business in Eire and £2 million from the rest of the world. That total is predicted to tip £30 million this year.
Mr Lord said the company’s drive to introduce new products to the market remained undiminished, having developed Miragrind 302 TC, a high performance, fully synthetic metalworking fluid designed to enhance machining operations.
The new product not only improves surface finish and contributes to lower operating costs, but it also provides excellent product stability and resistance to microbial infection and won’t leave sticky residues around a machine tool during use.
The company sources its material grades worldwide, including the Middle East and Europe.
“Overall, I would say 70% of all lubricants end up in an engine of some type, and the other 30% into hydraulics, compressors and 101 other applications,” quipped Mr Lord.
“Aztec Oils began growing substantially in 2010 when we ramped up production and invested in new facilities to be able to do more. And, even during these difficult times, we have continued to experience rising demand, with average growth topping 10-15% per year.”
That is amply demonstrated by the fact Mr Lord began the business at Bolsover from a 1,500 sqft unit before scaling up to buy the entire six-acre site to help meet the business’ development.
He added: “We are investing £1 million in the infrastructure and have consistently done so for the last five years. The main aim is to continue operating at modern facilities that also complement the high standards we aim to maintain in our quality lubricant products.”
In 2022, the company will invest £2.5 million in a new office block to replace the existing one and will also incorporate a new facility to enable Aztec Oils to transfer and absorb its small packing facility from St Helens.
Mark Lord Founder and Managing Director
“On the product front, our range is wide and broad, and we are continuing to diversify into specialisations with sustainability being a big thing, such as bioproducts. We are also looking to switch a considerable amount of our packaging into recycled plastics.”
But Mr Lord reflected: “I have been in the lubrication business for 40 years, but we are going through some monumental times in the industry, with what’s happening in Ukraine, problems in supply chains, price issues, Brexit and COVID-19.
“It all amounts to a perfect storm. Who would believe in three years we would have these challenges which are enormous gamechangers for everyone?”
Mr Lord emphasised: “The impacts of Brexit are still with us and were compounded by Covid-19, causing spiralling prices and supply chain issues between the EU, the UK and Ireland. Now we have the situation in Ukraine, which is creating more havoc.
“We cope because we have a longstanding supply chain. We are very flexible to demands and supplies. We are continually updating and upgrading our supply line contacts, and any shortfalls will be replaced elsewhere, such as from the Middle East.”
Next generation
With one eye on sustainability, Aztec Oils has invested in a partnership with a Danish company to recycle and re-refine engine oils to an excellent quality compared to base oils produced from a refinery.
“We have collaborated with this company for ten years, and now the products are going mainstream, as the industry continues to look at offering recycled, sustainable and biodegradable oils.”
He added: “We are also working with a Dutch company that makes containers from 100% recyclable materials.”
Mr Lord said the independent lubricant supply sector comprises long-standing companies, while Aztec Oils is still seen as “the new kid on the block”, so it had responded aggressively to make its mark.
“Some of our competitors struggle to respond to present-day demands and are not agile enough to potential opportunities. We are flexible, have a can-do attitude, provide a smarter service and build long-term relations,” he said.
“We are open with customers and keep them informed on what’s happening on the ground. We refuse to bury our heads in the sand. You are better off explaining the situation to customers as they ultimately respect that.”
He concluded: “Aztec Oils is here for the long-term, and with our Employee Ownership Trust, that will enable the company to drive forward relentlessly. If you have been in the business for a long time, oil is really in your blood. I am passionate about people owning what they do, and we are fully working towards taking the company to the next generation.” n
