Calumet Plans to Expand Synlubes


Calumet Specialty Products Partners recently announced plans to invest up to $40 million to double synthetic lubricants production at its esters facility in Louisiana, Mo., by August 2014. The facility currently has the capacity to produce 32 million pounds of ester-based aviation, refrigeration, air conditioning, and industrial lubricants.

The state of Missouri is supporting the expansion by offering tax incentives to Calumet if it meets strict job creation and investment criteria, according to a recent press release from the Missouri Department of Economic Development.

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The company expects the project will include a 25,000 square feet addition to the 22-acre site and will create at least 21 jobs.

In addition to increasing facility size, workforce, and production capacity, Calumet is also looking to add new products to its portfolio and expand its customer base.

Additional products will be added to serve military aviation, textiles, commercial aviation, highly specialized plasticizers for coatings, and applications where complex, high viscosity polyol esters are in demand. Rick Ingle, sales director for synthetic lubricants, told Lube Report.

Historically, the Missouri facility has been focused on the U.S. market, Ingle said, noting that Calumets future lies in expanding its marketing and sales efforts geographically and pursuing global opportunities. We have started exporting our synthetic solutions in earnest, and the expansion will allow us to be a significant global supplier of polyol ester synthetic lubricants.

The Missouri plant expansion and design will also allow Calumet to shorten industry lead times, Ingle said, adding that the company is very excited about the products it hopes the expansion will allow it to offer in addition to its base oils, mineral refrigeration oils, white oils, petrolatum, solvents, and waxes.

The Louisiana plant belongs to Monument Chemicals, a company owned by Heritage Group, the majority shareholders of Calumet Specialty Products Partners, L.P.