Amalie Oil on Monday announced it has acquired a 42-acre lubricant blending and packaging facility in South Carolina from Delfin Group USA. With 14 million gallons of tank storage, the deal brings the Tampa, Fla.-based companys total capacity to 32 million gallons.
The site is located on the Cooper River deepwater channel at the Port of North Charleston. A press representative for Amalie Oil told Lube Report that the company purchased Delfins Charleston assets for an undisclosed amount, and retained all of the employees from the facility.
We believe it was the right fit for us and for them as well. We needed what they have, and they were willing to sell it to us, said the representative, noting that the additional location will enhance service and delivery options to offer flexibility for our customers, and some growth potential.
The property includes a deepwater pier capable of handling ships up to 660 feet long, rail access and close proximity to major federal interstates, according to a press release.
Additionally, Amalie now owns more than 650,000 square feet in warehouse and manufacturing space, and 20 high-speed filling and packaging lines. Although exact volumes were not shared, the Amalie representative said the company expected to double its manufacturing capacity with the new facility.
Delfin Group USA, a division of Moscow-based Delfin Group Russia, purchased the 41.7-acre site from Chevron for $20 million in 2007. The facility produced a full line of passenger car motor oils, hydraulic oils, and antifreeze and diesel exhaust fluids.
The site has been in use as a gasoline or lubricants terminal since 1910, when it was initially operated by Texaco Petroleum Products. The plant became part of the Equilon Lubricants joint venture between Texaco and Shell in 1997, and in 2002 was made part of Shell Oil Products US.
Lube Report was unable to reach Delfins management in Russia for comments on why it is selling the facility.
In May 2012, the former president of the company, Markos Baghdasarian, was arrested and charged with exporting aviation oils to Iran in violation of the U.S. economic embargo over Irans nuclear program. He was subsequently sentenced to three years in prison. Delfin Group Worldwide later issued a statement denying rumors that its South Carolina plant would cease operations.
Amalie Oil Co. was founded in 1957 as Petroleum Packers Inc., and has been privately owned by the Barkett family since 1977. It adopted the name Amalie Oil in 1998, when it acquired the historic motor oil brand, which dates back to 1903, from Sunoco. Amalie specializes in manufacturing and marketing motor oil and industrial lubricants, which it ships to all 50 states and more than 100 countries. It has its headquarters on a 20-acre site at Port Tampa Bay, where it blends and packages over 3,000 products.