Volume 6 Issue 26

SKF's Lube Business Blossoms

SKF announced last week that it has agreed with John Crane Safematic Oy, part of the Speciality Engineering Div. of Smiths Group plc, to pay 22.9 million (U.S. $28.8 million) for John Cranes lubrication systems business. The business is headquartered and manufactures in Muurame, Finland, and has sales offices in Sweden, Germany, the United States and Brazil. The John Crane lubrication systems business had sales in 2005 of 25 million and has 127 employees. SKF, based in Goteborg, Sweden, is a le...

Antioxidant Plant Planned for China

Ciba Specialty Chemicals announced Friday that it has entered a joint venture with a Chinese chemical maker to build an antioxidant factory outside Shanghai. The facility, being constructed in cooperation with Jiangsu Feiya Chemical Co., is scheduled to begin production during the fourth quarter of this year. Officials said the regions demand for alkylated diphenyl amines for use as lubricant antioxidants is growing due to its need for more and higher-performing lubes. The market demand for tec...

Chemical Prices Continue to Rise

The lubricant industry continues to absorb price increases on chemicals that it uses. Ciba Specialty Chemicals, Pilot Chemical Co. and OM Group Inc. announced hikes recently, all blamed on rising raw material and energy costs. Ciba said June 16 that it was imposing an immediate hike of 15 percent on its products, which are marketed under the Irganox, Irgalube, Irgacor, Irgamet and Irgafos brand names. The specialty chemical supplier, which is based in Basel, Switzerland, said it was pushed to ac...

Oil Consumption Pushes Nissan into Recall

Nissan North America advised U.S. regulators last week that it intends to recall up to 97,000 new cars because of excessive engine oil consumption. The automaker said the problem, announced earlier this month, appears to stem from improper functioning of piston rings. An official said yesterday that the company still has not pinpointed the exact cause of the problem and that it will not take the final step of declaring a recall until that happens. Were close, and we anticipate that we are going ...

Road to Recovery: Stocking Up for Future Storms

Editors note: Over the past year, the U.S. lubricant industry was buffeted by an unprecedented series of disruptions to supplies of raw materials. This week Lube Reportconcludes its three-partseries of articles reporting on the strides made toward recovery – and the distance yet to go. When Hurricane Rita bowled ashore last August, it forced the closure of four base oil plants, causing the biggest disruption in memory to the U.S. lubricant industry. The storm left42 percent of paraffinic c...