Chevron marketer Crevier Lubricants opened a new 62,000 square foot plant in Canadas Quebec province April 19.
The plant in Longueil, Quebec, doubles the floor space of its facilities and increases its warehousing capacity to accommodate more than 3.5 million liters of bulk and packaged lubricants, primarily motor oils and hydraulic oils, Crevier said in a prepared statement. The company said it can now more effectively operate its packaging line as well as package private brands.
Crevier said geographic location was a factor in its decision to move, as the new location is closer to a railway line and permits it to take advantage of lower transport costs and open up new markets.
This initiative is part of a long-term development plan that began three years ago with the signing of an exclusive Eastern Canada distribution agreement with Chevron, said Guy Desaulniers, general manager for Crevier Lubricants.
In terms of bulk lubricants, the plant has about 1.3 million liters of storage capacity, according to Peter Trepanier, Creviers sales manager.
Crevier provides lubricants to multiple markets, including transportation, construction, power generation, mining, consumer automotive, marine and agriculture. Trepanier said a big expansion is taking place in the mining industry in northern Quebec. There are probably about 10 or 12 mining projects under development right now, he told Lube Report. Thats going to create a lot of opportunities.
He noted Quebecs cold weather and changes in regulations play a factor in the demand for certain types of lubricants. Definitely because of the climate, youre looking more at synthetics, Trepanier said. People are a lot more sensitive to the environment now, so were looking at more and more requirements for biodegradable lubricants.
Since the partnership with Chevron was formed, Crevier has entered into other key alliances, including an agreement with Bioblend which produces biodegradable lubricants. Crevier also has opened distribution centers in Saguenay-Lac-Saint-Jean, the Lower St. Lawrence-Gaspe region, and on the North Shore. The Longueuil plant is on the South Shore.
It has also increased its sales force to cover the entire Quebec territory. Crevier Lubricants has gone against the centralization trend, choosing instead to focus on being close to its customers and to stimulate the local economy, said Desaulniers.
At Thursdays plant inauguration ceremony, company officials announced The Group Crevier division formerly known as Saint-Laurent Lubricants changed its name to Crevier Lubricants.