Tamoil Italia S.p.A began in 1986, when a private investor acquired Amoco’s entire Italian operation, consisting of a refinery in Cremona and a network of service stations. In 1988, it was acquired by the Oilinvest Group. The company’s recent history has seen two major moves, driven by developments in the industry and pressures in the wider economy: the closure of Cremona refinery, and a refocusing of the company’s strategy toward logistics and retailing.
The Italian downstream market has been hallmarked by oversupply and inadequate demand for many years. The Euro-crisis of 2011 brought things to a head. With demand at the pumps dropping significantly in those years, while pressure from low-cost producers in India and China increased, the decision was taken to cease refining at Cremona, and re-orient the company to reflect the new competitive environment.
The decision to transform Cremona into a modern logistics hub reflected the new reality: that it’s now competitive supply and storage logistics that determine market ranking and performance. After a round of vigorous cost-cutting, Tamoil purchased 24% of Continentale, representing 14.4% of SIGEMI – three tank farms connected by about 150km of pipelines, enabling a secure and modern logistics hub in the heart of Italy’s industrial heartland – the Po Valley. This new capability helped in the negotiation of a number of long term supply contracts.
In retail, meanwhile, the company began rationalising its network, focusing attention and investment on improving large, owned, automated stations, while withdrawing from a number of smaller, unprofitable sites. Various optimisation projects are in progress, to make these core stations among the best in the market: direct management, automation and micro-pricing, motorway optimisation, ENI Multicard acceptance and electronic coupon systems.
Stronger logistics have also benefited Tamoil Italia’s wholesale activities, with a particular growth in the jet business.
Tamoil Italia is a large producer of lubricants and co-owner of a Lubes Plant based in Italy. Thanks to its technical know-how, the Tamoil lubricant products are endorsed by official approvals from Car, Truck and Powertrain makers (O.E.M.) such as: Porsche, Mercedes, Audi-Volkswagen, Volvo-Renault-Mack, ZF and VOITH. Furthermore Tamoil Italia is not only operating at a national level, but is also in charge of developing the lubes business in Europe. Tamoil Overseas Limited leads the international trading in the rest of the world.