AN INVESTIGATION is under way by the UK Trade Remedies Authority into allegations of ‘product dumping’ by wholesale oil distributor Mannol UK.
The claims have been made by Aztec Oils Limited. Lubriage Ltd, which trades as Mannol UK and Mannol UK & Ireland, denies the allegations and has retained Northamptonshire law firm Wilson Browne Solicitors to defend its interests.
Incorporated in 2015, Lubriage Ltd provides a range of engine oils, lubricants and related products. Aztec Oils alleges ‘product dumping’ – where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country – from factories in Lithuania and the United Arab Emirates.
Mannol, whose UK office is in Northampton, has also instructed Wilson Browne Solicitors in relation to a number of potentially defamatory statements. Mannol cannot comment further on that as there is an ongoing legal case being investigated, the company said in a statement via its solicitors.
It added: “Insofar as the investigation from the TRA goes, Mannol will be engaging and cooperating fully in the process and will be providing commercially sensitive and confidential information to the TRA to demonstrate that these complaints are baseless.
“Mannol’s view is that if a competitor cannot compete with their prices, reached through economies of scale and negotiation, that does not mean that Mannol, their suppliers or the factories have done anything wrong.
“Mannol, like many large brands in this sector react to price changes frequently, competing for market share and to protect their business from price changes implemented by competitors. The concept of selling products below cost price – the ‘loss leader’ – is not a new one. Mannol maintains that they have always been happy to support their loyal customers with great offers and a quality product, especially when money is tight for businesses and consumers.”
No further comment will be made in relation to the TRA investigation until it is complete, the statement added.