Allegheny Petroleum Expands in Midwest


Wilmerding, Pa.-based lubes blender Allegheny Petroleum Products has expanded, acquiring a distributor in Indiana. Allegheny plans to continue growing its industrial lube sales in the Midwest.

Allegheny acquired distributor Wilder Oil and its 200,000-gallon distribution facility in Evansville, Ind., effective Jan. 1. He was a distribution point for us, and he wanted to retire so we bought him out, said Allegheny Petroleum Vice President Jim Kudis. Terms of the sale were not disclosed.

Kudis saidhis company has some large customers in the Midwest. Weve been shipping from Pittsburgh to there, he said. This will give us a significant cost savings.

The distribution operation gives the company its own footprint in the region, he added. That gives us total control with our people there, Kudis said. Were going to use that as an expansion area. We can cover St. Louis, up into Chicago, all over the place there.

According to Kudis, Allegheny will evaluate the Wilder Oil business, and consider expanding it into manufacturing for the Midwest.

He also said the company expanded its fuel additives capacity back in Pennsylvania in November, adding another 350,000 gallons of storage.

Alleghenys product line includes industrial lubricants, automotive and fleet lubricants, fuel additives, lubricant additives and fluid management. Kudis said the company enjoyed a strong 2006, with lube sales – primarily industrial – up from 2005.

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