Dover: Two Sites Will Make CPs

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Dover Chemical Corp. said it has nearly completed manufacturing integration of the Mayco and Keil Chemical businesses that it acquired in the past year, and it will continue to produce chlorinated paraffins at both its Dover, Ohio, and Hammond, Ind., plants.

Dover, which is based in Dover, Ohio, became North Americas dominant supplier of chlorinated paraffins when it acquired Ferro Corp.s Keil Chemical Division in July. Cutting-fluid manufacturers, who use chlorinated paraffins for extreme pressure protection, expressed concerns not just about Dovers dominance but also about the prospect of depending on a single manufacturing site.

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In a news release distributed yesterday, Dover explained that production of some high-volume Keil chlorinated paraffins will be moved to the plant in Dover, while others will continue to be made at the former Keil plant in Hammond. The company acknowledged that it is maintaining operations at both sites to alleviate supply concerns.

Dover also said that BP Castrols Warminster, Pa., plant will stop making Mayco-branded sulfurized additives by the end of this year and that production will be moved to Hammond. Castrol sold Mayco to Dover in December 2002 but agreed to continue manufacturing its products temporarily.

Dover officials said the shuffling of operations will allow the company to gain efficiencies in production of both product lines, helping to hold down prices despite increases in raw materials costs. They added that the company is considering product rationalization and invited customer input.