ARG Buys Product, Lands Contract


American Refining Group Inc. has acquired a dust suppressant product and a private-label lubricant contract, both as a result of Pennzoil-Quaker States closing of a lubricant blending plant.

ARG, of Bradford, Pa., purchased formulation rights and U.S. manufacturing and marketing rights for PennzSuppress D, an environmentally safe, emulsified petroleum resin used to suppress dust and stabilize soil. ARG had supplied a key ingredient for the suppressant and agreed to buy the line when Pennzoil-Quaker State decided to close the Mundys Corner, Pa., plant where it was produced.

This is certainly a new type of product for us, President and Chief Operating Officer Harvey Golubock said. But its consistent with our efforts to move away from commodities to specialty products. This product has a variety of types of customers. Some of them could be companies that we are already serving, and it could give us an entree to begin serving others.

Two former Pennzoil-Quaker State employees who worked with PennzSuppress D, Rick Carlson and Colin Kimball, joined ARG in the transaction, which also included facilities moved from Mundys Corner to Bradford.

ARG was also named a regional manufacturer of private-label engine oils and lubricants marketed by FL Viscosity Oil Co., of Willowbrook, Ill. FL Viscosity, a subsidiary of FL Italia S.p.A., was previously supplied by the Mundys Corner plant.

Time was short and the early spring promotional requirements were just around the corner, FL Viscosity President Jeff Hoch said of the need to find a private label provider. We needed a supplier with the facilities, people and experience to handle our exacting OEM requirements. ARG has more than met our expectations.

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