Orlen Oil claims to be the largest lubricant supplier in the 10 Central European countries that stretch between the Baltic Sea and the Balkans. The Polish company estimates that ExxonMobil and Lotos Oils rank second and third, respectively, in those lubricant markets, which have advanced rapidly during the past 15 years.

During a 24 February presentation at the ICIS World Base Oils & Lubricants Conference in London, Orlen Oil Development Director Robert Uberman said his company sells nearly 120,000 metric tons per year of lubricants in Poland, the Czech Republic, Slovakia, Belarus, Ukraine, Moldova, Hungary, Romania, Bulgaria and Slovenia. Orlen, which is based in Krakow, estimates that U.S. energy giant ExxonMobil sells approximately 92,000 t/y in those nations and that Lotos Oil, of Gdansk, Poland, has sales of 80,000 t/y.

Central European countries have seen significant industrial expansion since the mid-1990s, Uberman said, and lubricant demand has expanded as a result. Much of the economic growth is due to foreign manufacturers building factories in the sub-region to take advantage of favorable labor rates. A third of Europes automobile factories are now in Central Europe, and Uberman posed the possibility that Poland or the Czech Republic could eventually pass Germany as the country with the most plants.

Uberman did not offer estimates of lubricant demand for the sub-region, but he did say that Central and Eastern Europe consumed 7 million tons of base stocks in 2007, just below Western Europes 7.36 million tons.

Central and Eastern Europe together have 24 base oil plants with total capacity to produce 6.3 million t/y, including Russian and CIS capacity, Uberman noted. Base oil refineries in Bosnia, Belarus, Czech Republic, Hungary, Poland and Ukraine have a total of about 1.5 million t/y of capacity. But many plants [in the sub-region] operate much below capacity, said Uberman. Only Orlen Oils Plock plant is operated at capacity.

Solvay Offers to Buy Rhodia

Solvay in April offered to buy Rhodia for 3.4 billion. If consummated, the deal will unite two global chemical manufacturers whose products include lubricants, greases and metalworking fluid additives.

The cash offer of 31.60 per share for all of Rhodias share capital was to be launched in France and extended to the United States. Solvay made its tender conditional upon regulatory approvals and upon a minimum acceptance level of 50 percent plus one share. Solvay said the deal would probably be completed by late August.

The products of Lyon, France-based Rhodia include antiwear and extreme pressure additives, corrosion inhibitors, emulsifiers and surfactants. The company makes a variety of oxygenated solvents used in lubricants. Rhodia also makes wet steel cord drawing lubricants that are mainly used in the tire industry.

Solvay, which is headquartered in Brussels, is an international industrial group. Its products include a variety of fluorinated fluids, lubricants and greases. It also makes chlorinated solvents and a variety of specialty polymers.

Gazprom Eyes Slovenia, Balkans

Russias Gazprom Neft and Slovenian energy company Petrol plan to cooperate on supply and marketing of lubricants and fuels in southern Europe and the Balkan states.

Petrol Chairman Tomaz Berlocnik and Gazprom Neft Chairman Alexander Dyukov recently signed an agreement during Russian Prime Minister Vladimir Putins visit to Slovenia.

Through the partnership, Gazproms Serbian subsidiary Naftna Industrija Srbije (NIS) will supply the Slovenian and other markets of southeastern and Central Europe with industrial lubricants, motor oils, fuels and domestic heating oil. The deal signifies the development of business cooperation in a wider area, particularly on the Balkans and those markets where Petrol is not present yet, Petrol stated.

Together with Gazprom Neft, Petrol plans to expand its services in Romania and Bulgaria. Cooperation with Petrol allows Gazprom Neft and NIS to further expand its activities in the Balkans, said Gazprom Nefts Dyukov, adding that the deal would strengthen the Russian oil companys position as a key petrochemical producer and distributor in the region.

Petrols core business is oil product trade, with a retail network of 441 service stations in Slovenia and in other countries in the region such as Austria, Croatia,

Montenegro and Bosnia and Herzegovina. The company also trades in gas, electricity and other energy products.

Petrol possesses very good logistics and excellent market position in the region, the Russian oil majors press office told Lube Report. With its wide network of service stations, the company offered Gazprom Neft a variety of possibilities within this partnership. It will help our company to become a key player on the Balkans.

NIS started to stream base oil in its refinery in Novi Sad, Serbia, the company announced recently. The plant is expected to have capacity of 100,000 metric tons per year, and the company so far hasnt disclosed the base oil quality or estimated when the plant is expected to reach full capacity.

Essar Seals Deal for Stanlow

Essar Energy finally reached an agreement to buy Shells refinery in Stanlow, United Kingdom. The 242 million transaction, announced 29 March, includes an API Group I base oil plant with capacity to make 260,000 t/y.

The companies have been negotiating off and on since the third quarter of 2009. In February they announced that Essar had offered $350 million and that they would negotiate exclusively with each other until April 1.

Shell has divested several refineries in recent years as part of a strategy to concentrate on core, profitable operations. Since 2002 the Anglo-Dutch energy giant has reduced its global refining capacity by 1.6 million barrels per day. Stanlows total crude throughput capacity is 270,000 b/d.

Essar, an Indian conglomerate, wanted to expand its refining operations and to enter the European market.

We are very pleased to have agreed this transaction with Shell, Chief Executive Officer Naresh Nayyar said. Stanlow is a high quality refinery and is an excellent fit with our strategy. We look forward to taking ownership of Stanlow in due course and making operational improvements which will enhance production and better optimize the facility.

Although neither company mentioned the base oil plant when announcing their agreement, Essar said previously that it expected to enter a supply agreement to sell the base stocks to Shell. Shell has said it will keep and plans to continue operating a lubricant blending plant at Stanlow. Shell officials said the agreement is good news for employees of the refinery and the surrounding community.

This deal serves Stanlows future well, given Essars commitment to investment and intent to increase site throughputs, said Frank Willsdon, Stanlow general manager. It can only benefit staff, business partners and the local community and region. After our many years with Shell, we now look forward to a smooth transition and moving forward with Essar.

Total Builds Blend Plant in China

Total will invest 30 million in a 200,000 t/y lubricant blending plant in Tianjin, China. The French energy giant said the facility will open in late 2012.

The facility in the northern China coastal city will be wholly owned and operated by Total (Tianjin) Manufacturing, a new Total subsidiary in China.

The blending plant will produce lubricants for the factory fill and after sales markets of its numerous local and international [original equipment manufacturer] partners, Total (China) Investment Co. Ltd. spokeswoman Vivien Liu told Lube Report. According to Liu, the Tianjin plant will produce a full range of mineral, semi-synthetic and synthetic lubricants for the passenger car, bus, motorcycle, heavy duty and earthmoving markets, along with industrial lubricants, marine lubricants and greases.

Liu noted the plant will be one of Totals biggest production units in the region. The Tianjin plant has a strategic importance for Total in China and in the Asia Pacific region, she said. It will as such serve export markets for Total affiliates as well as the Chinese market.

The new investment in Tianjin marks a strategic move to expand Totals existing lubricant manufacturing in Guangzhou and Zhengjiang in Jiangsu, to cover the high-potential provinces in the north and west of China, said Thierry Pfimlin, senior vice president of Total Refining and Marketing for Asia-Pacific.

Paris-based Total has 30 subsidiaries and 4,000 employees in China, where it has been present for 30 years. In refining and marketing, Total cooperates with partners PetroChina and Sinochem in the West Pacific Petrochemical Co., Chinas first refinery with foreign investment. Total and Sinochem are working together to build and operate two retail networks of 200 stations and 300 stations, respectively, in the north and east parts of China.

Fuchs Profits Rose in 2010

Fuchs Petrolub AG posted earnings of 171.6 million for 2010, an increase from 121.4 million in 2009. The company, the worlds largest independent lubricant marketer, had sales revenues of 1.5 billion in 2010, an increase of 25 percent from the previous year.

The Mannheim, Germany-based company said the growth in 2010 returned revenues to pre-recession levels. Management added that it expects further growth and increased profits in 2011, though it cautioned that risks exist.

For 2011 as a whole, the Fuchs Petrolub Group expects to see the economic environment remain positive and is planning increases in sales revenues in all three global regions, the company said. Hereby, Fuchs assumes that the global economy will not be significantly affected by geopolitical tensions, the debt crisis in many countries, the increasing raw material costs and, most recently, the natural and nuclear disaster unfolding in Japan.

For 2010 the company reported large growth in all of its geographic divisions. Revenues in Europe climbed from 743 million to 875 million, while those for Asia and Africa jumped from 290 million to 382 million. Revenues in the Americas swelled from 177 million to 245 million.

Oando Expands, Upgrades Lube Production

Nigerias Oando Marketing said in February that it has invested more than U.S. $1 million (700,000) to upgrade its lubricant business. The improvements were made primarily at the companys blending plant in Kaduna and included changes aimed at ensuring product quality as well as an expansion of capacity.

New filling equipment gives the plant capacity to package 100 million liters of lubes per year. Other equipment conducts automated quality checks to ensure lubricants are meeting desired specifications. The company also introduced a seal and cap spout for lubricant packages aimed at fending off counterfeiters.

Oando Marketing is an arm of Lagos-based Oando Plc, Nigerias largest oil and gas company. A spokesman said the investment is part of Oandos efforts to comply with a government initiative to crack down on rampant sales of substandard and counterfeit engine oils. At the start of this year the government proclaimed that lubricants could be sold only at filling stations and other specially designated areas and that products should be packaged to identify the company that blends them.

Oando said the mandates are already raising sales of branded products and that it increased capacity of its Kaduna plant to help meet that demand. Oando markets lubes under the Oleum brand.

Croda Announces Lube Rebrand

Croda Lubricants in March launched a rebrand of its products. The initiative includes a new logo, with Croda Lubricants written on one line instead of two, in a new font and with a tagline added, Leading the way naturally. Banners on promotional materials include images of machines and plants.

Management said the new look is designed to communicate the companys commitments to technical performance and environmental sustainability.

Croda is based in Goole, East Yorkshire, U.K. In addition to lubricants and lubricant additives it makes products for industries such as personal care, health care, coatings and crop care.

Castrol Marine Supplies ISP

Castrol Marine announced an agreement in March to supply stern tube lubricants to International Shipping Partners. ISP will supply passenger ships that it manages with BioStat-branded lubricants.

ISP has already switched six of its vessels to BioStat and plans to install the lubricant on other ships as they drydock. According to Castrol, BioStat has superior biodegradation and reduced bioaccumulation.

Castrol Marine is part of London-based energy giant BP. ISP is based in Miami, Florida, U.S., and is a provider of passenger ship management services.

Taminco Taps Buyse

Amine supplier Taminco selected Kurt Buyse to become director of its Performance Products Business Unit. Buyse joined the company in 2008, supporting business development in Europe, the Middle East and North Africa, after an 11-year career in the coatings industry.

Taminco, which is based in Ghent, Belgium, produces alkylamines and their derivatives for metalworking fluids and other applications such as paints, coatings, pharmaceuticals and agriculture.

Total Links with Kia

Total Lubricants in March entered a five-year international cooperation agreement with Kia Motors Corp. The deal calls for Total to supply its Quartz-branded lubes to Kia networks outside South Korea – where Kia is based – and Europe. It also commits Kia to recommend those lubes within the same coverage regions.

The companies said Total will also provide marketing expertise to Kia networks in an effort to further develop loyalty among of Kia vehicle owners. The companies will also work together on development of lubricants and related services.