New Rerefinery Rises on Wolverine Site


A Canadian start-up is planning to join the ranks of North Americas rerefiners. Saskalta Corp. is building a used oil processing plant at the former site of Wolverine Resources, which went out of business six years ago.

Co-founder Greg Wilkie, who will become president and chief executive officer, said it seems an opportune time to enter the base oil market, given the surge in prices and strong demand.

Feedstock costs have gone up some, but if you look at whats happened to [base oil] sales prices and the interest weve had – potential customers are trying to lock us up even before the plant opens – yeah, its a good time to start a business like this.

Saskalta officials told Lube Report last week that the new plant is scheduled to open in February. It is designed for capacity of 400 b/d of base oil.

Wolverine operated a rerefinery on Saskaltas site in Humbolt, a town in south central Saskatchewan Province, until going bankrupt in 2000. Wilkie, who spent 20 years in Canadas refining and oilfield equipment business, bought the facility three years later. Since then he and his partners formed Saskalta, obtained financing and contracted U.S. rerefiner Evergreen to design a new plant that is now being built.

Wilkie said the plant will make three products – a mid-grade and a light-viscosity base oil and a small amount of asphalt.

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