Mil Speck Plans W.Va. Rerefinery


Mil Speck Re-Rerefining Oil Co. selected a 40-acre site in West Virginia for its rerefinery, which is expected to begin production in early 2014.

The company, which is jointly developing the rerefinery with non-profit group Renewable Manufacturing Gateway, expects the rerefinery to process 25 million gallons of used motor oil per year, and to produce vacuum gas oil, base neutral and asphalt flux. Both companies are located in Pittsburgh.

Weve been at this a good while, Mil Speck CEO Carl Greene told Lube Report. Weve really just gotten to the point where were moving forward. Greene estimated the projects cost at more than $45 million.

The rerefinery will use technology designed by Sequoia Global Inc. of India to produce API Group II base oil. Greene noted he was very familiar with Sequoias process engineer, Rohit Joshi. The estimated base oil production for Mil Specks rerefinery is not disclosed because it is considered proprietary information by some of its prospective buyers of the product, Greene said.

After a technical study and transportation infrastructure considerations, the company selected the site in St. Marys, a city in Pleasants County. St. Marys is in the northwestern part of West Virginia, along the Ohio River.

It is in a strategic location for our main buyer, who will be purchasing our product, Greene told Lube Report. He didnt disclose the buyers name. According to Greene, the company will begin engineering and site preparation work for the project within the next 30 days. Within 15 months, we hope to begin production, he said.

Working capital provided by RMG will pay for an option to acquire the property as well as to obtain permits and construction capital. RMG is basically more or less like our financial wing on the project, Greene explained. We handle all the technology and applications, moving all the dirt. Theyre arranging strategic financing, and also have an investment in the project.

Once the rerefinery is operational, it is expected to provide 34 job positions in terminal operation, material handling, process, maintenance and administrative departments. Eventually our growth plans are to hit 200 people, maybe into the fourth or fifth year, Greene said. We intend to expand rapidly.

Green said he has been in the used oil recycling business since 1986 and has seen many changes in the market over the years.

All of a sudden it feels like the industry is heating up again, Green said. Ive been around long enough to know when it went down to zero, and now I havent seen such construction within the last 20 years in this business. I think you could even say that up until the last five years, nobody was talking about it. I think its going to be interesting in how the market shakes out.

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