Cargill Industrial Oils and Lubricants and Hatco Corp. have announced an alliance aimed at supplying biobased industrial lubes to Latin America by the end of next year.
The companies plan to build a vegetable oil refinery and a plant in which to produce ester base stocks, or else to buy existing facilities. Officials said Cargill already has resources in the area for raw materials – such as soy and palm oil – which was one of the motivating factors in the venture.
The driving force is that they have the resources and we have the technology, said David Mason, Hatcos vice president of regulatory affairs. Were a very good fit in this instance.
Although Latin America has lagged some other regions in its demand for biobased lubes, the companies believe such products are beginning to catch on.
The market for biobased lubricants is just beginning to grow in Latin America, said Kurtis Miller, head of Cargill Industrial Oils and Lubricants. We intend to be a key player as it develops and we believe an alliance with Hatco will help spur that development.
Cargill Industrial Oils and Lubricants is a leading supplier of natural fats and oils and industrial products that are made from them. Its parent company, Cargill Inc., is based in Minneapolis, Minn., and is an international marketer, processor and distributor of agricultural, food, financial and industrial products.
Hatco is a business unit of Kaufman Holdings, of Fords, N.J., and is a leading global producer of synthetic lubricant base stocks for the aviation, automotive, industrial, medical, cosmetic and personal care markets. Mason said the alliance with Cargill will probably serve the same markets.