Aberdeen-based Normac Oils has secured two large agreements, one of which is worth almost £800,000, that will deliver significant cost savings to its new customers in the wake of failing oil prices.
The contracts include the provision of lubricants, grease and oil samples to global oilfield service provider, Archer, as well as member organisations of the North East Procurement Organisation (NEPO).
The agreement with Archer will see Normac provide the company with a wide range of competitively priced products. Key to winning the contract was a commitment to fix prices until the end of the year, which will allow Archer to plan ahead with more financial certainty.
A four-year agreement has been established with NEPO after Normac became one of several organisations appointed to a framework for the supply of vehicle lubricants This framework is open to a large number of local authorities represented by NEPO, as well as its expanding Associate membership base.
Normac Oils Ltd is based in Aberdeen and has depots in Shetland, Orkney, Inverness, Peterhead and Perth. Formed in 2007 selling Shell Oil only, it is now one of the leading source and supply companies in the North East of Scotland with over 30 premium brand products of lubricant, grease, and chemicals covering a wide range of applications to all areas of industry.
Andy Ramsay, general manager at Normac Oils, said: “Being able to supply Archer is a major feather in our cap. The support of the maintenance engineering and supply chain team to embrace change has been admirable. Archer has demonstrated that their willingness to seek quality alternatives can produce significant cost savings. This agreement is testament that it is entirely possible for an SME and a global company to work together for mutual benefit.”
Paul Henderson, UK Supply Chain Manager at Archer (UK) Ltd, said: “A good supplier is one that offers strong service, high quality and solid reliability. Good communication is also key, working in close contact means Normac Oils better understands our needs which helps improve our working relationship.
“Archer likes to have a partnership approach with our key suppliers as I strongly believe this benefits both parties. Suppliers also need to have vision, and Normac Oils is clearly looking to continually expand and develop its systems and processes and that positively impacts on us.
“I am looking forward to working more closely with Normac Oils and forming an excellent working relationship that I can see continuing far into the future.”
Paul Livingstone, business development manager at NOF Energy, said: “Normac Oils has developed an excellent reputation in the industry in a relatively short period of time. Its quality product and service provision is clearly hitting the spot and with a customer base boasting the likes of Archer and NEPO the future looks bright.”