D-A Lubricant Invests in Indiana


D-A Lubricant Co. is investing more than $3.9 million in equipment at its headquarters in Lebanon, Ind., where it eventually plans to move some of its production of Brad Penn Lubricants from Pennsylvania.

Mike Protogere, D-A Lubricant CEO, clarified to Lube Report yesterday the company would only move production of some products from Bradford, Pa., not all, as was incorrectly stated in a Feb. 24 Indiana Economic Development Corp. press release.

The corporate offices are moving there, and some of the Brad Penn products will eventually be in Lebanon, Protogere told Lube Report. Several of them that we cant make, like Penn-Grade 1 racing oil, will continue to be made in Bradford.

He said products relocated to Lebanon will be those that dont necessarily utilize the Brad Penn base stocks produced in Bradford by American Refining Group, which sold the brand to D-A last year. The things that were in a better position on, or that are easier to manufacturer at our location, is what well end up manufacturing in Lebanon, he said. The other things that are more beneficial to us to continue to make in Bradford, will continue being made there.

Protogere emphasized the blending and packaging agreement with ARG will remain in effect. Absolutely, theyll still have a considerable amount of blending to do there in Bradford, he noted.

The Lebanon facility has some advantages when it comes to using synthetic base stocks and some Group II base oil, according to Protogere. And ARG obviously has some advantages that we dont have. But we are also investing in Lebanon because well be using some of the ARG base stocks to make some products in Indiana. Not only for Brad Penn, but for D-A, depending on their geographical location. It doesnt make much sense to make something in Bradford that were going to send out west, and vice versa.

He said a key part of the equipment investment in the 250,000 square foot Lebanon headquarters is a new polymer solubilization kettle and a transport mechanism to help get polymer to the kettle. Other equipment planned for the Lebanon facility includes more storage and blending tanks, a high-speed pail filling line, and a new racking and inventory system for packaged products.

D-A Lubricant acquired the Brad Penn Lubricants brand in late 2014. At the time, the companies said they also reached a blending and packaging agreement in which ARG would continue to blend and package most of the Brad Penn Lubricants at its Bradford, Pa., facility. ARG has capacity to refine 2,400 barrels per day of lubricant base stocks at its Bradford refinery, including 2,100 b/d of API Group I and 300 b/d of Group II.

D-A Lubricant, which currently employs 130 full-time associates, including more than 100 in Indiana, has already begun hiring for office, administrative, manufacturing and warehouse positions, according to the Indiana Economic Development Corp. press release. The economic development agency offered D-A Lubricant up to $100,000 in conditional tax credits and up to $100,000 in training grants based on the companys job creation plans.

D-A is a privately owned lubricant compounder/blender. The company also provides technical assistance, proprietary tribology formulation and fluid testing capabilities.