With the dust settled from hurricanes Katrina and Rita, the U.S. lubricants industry finds itself splitting at the seams – riddled with an unprecedented level of supply problems and unable to meet customer demands. Several major lubricant suppliers have imposed allocations, a large chunk of the nations base oil capacity remains offline and additive companies are reportedly struggling to obtain scarce raw materials. Observers say it adds up to the most trouble the industry has faced in memo...

In a case of the little fish swallowing the big fish, Ineos has agreed to buy BPs Innovene – an olefins and derivatives business that is more than triple its size – for $9 billion. The transaction, expected to be completed around the beginning of 2006, would broaden Ineos activity with chemicals used in the lubricants industry. Ineos, which is based in Southampton, U.K., is currently made up of nine businesses that supply diverse specialty and intermediate chemicals, from chlorine to...

Spanish refiner Cepsa confirmed yesterday that it plans to close its base oil plant in Palos de la Frontera in February. The plant has capacity to make 2,800 barrels per day of paraffinic stocks, and is one of Cepsas two base oil holdings. The plant being closed is part of La Rabida refinery, which is located in Huelva province. Paris-based Total owns a minority share in the facility, which began making small volumes of Group II base stocks in 2003. Group II accounts for 400 b/d of the total cap...

Munzing Chemie, parent of foam control additive supplier Ultra Additives, has opened an office in Shanghai and plans to install laboratory facilities there before the end of 2005 to serve the entire Asia region. Prior to establishing the new facility, Munzing, headquartered in Heilbronn, Germany, has been marketing additives for metalworking fluids, industrial lubricants, wastewater treatment, and leather and fur production in Asia through distributors. We are committed to the markets in Asia, ...