Clean Harbors Separates Lubes Unit


Safety-Kleens parent Clean Harbors has carved out its base oils and lubricants business under the new name Kleen Performance Products.

All of rerefiner Safety-Kleens API Group II base stocks and EcoPower finished lubricants now fall under the new unit, which is based in Richardson, Texas, and headed by Safety-Kleens former president Jerry Correll.

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Clean Harbors announced the change Monday, explaining in a press release that Kleen Performance Products will encompass research and development and distribution of all its base oils, automotive engine oils and industrial lubricants. It will also sell its Performance Plus portfolio of automotive and industrial lubricants which includes semi-synthetic and synthetic products.

Safety-Kleen, set to continue operating parallel to the new standalone lubes segment, will still handle all of the groups used oil collection – which amounts to approximately 220 million gallons per year – and provide other waste management, industrial cleaning and maintenance services.

The decision stems in part from a strategic review Clean Harbors initiated earlier this year, the statement noted. The review recommended that the company refocus its businesses on what each does best in order to maximize value.

Correll told Lube Report that the new brand piggybacks off the strength of the Safety-Kleen name but allows the company to dedicate more focus and additional resources to its lubricants business. He noted that KPP will depend on and work closely with Safety-Kleen.

In addition to separating its rerefining and lube marketing operations and refocusing Safety-Kleen on its core services, the Norwell, Mass.-based company will also carve out its oil and gas field unit and its lodging services unit (which provides lodging for oil field and drilling companies) as standalone entities.

The formation of Kleen Performance Products will enable Clean Harbors to capitalize on untapped growth opportunities in an expanding market and dedicate more resources to product development, sales and customer service, said Alan McKim, Clean Harbors chairman and CEO.

Business that had been previously demarcated as oil rerefining and recycling in Clean Harbors filings with the Securities and Exchange Commission will now be identified as Kleen Performance Products – starting with the companys third-quarter earnings results slated for release next week.