Saudi Aramco Luberef Co. in October formally announced a major expansion of its refinery in Yanbu al Bahr, Saudi Arabia, to produce 700,000 metric tons per year of API Group II base oil. In addition to the new Group II plant, scheduled for completion in the third quarter of 2015, Luberef will also increase bright stock output at Yanbu from todays 84,000 to 175,000 t/y.

Demand for Group II is forecast to account for 25 percent of total global demand for base oils by 2020, and is expected to exceed 30 percent of total demand by 2030, Vice President for Manufacturing Ibrahim A. Al-Faqeeh said at the ICIS Middle East Base Oils and Lubricants Conference in Dubai. So Luberef will make Group II and will be able to make Group III. He added that the project could cost around U.S. $1 billion, although final cost estimates have not been announced.

The Yanbu plant currently has capacity to make 280,000 t/y of Group I. Luberef operates a second Group I plant in Jeddah, Saudi Arabia, with capacity of 260,000 t/y.

When the expansion at Yanbu is complete that plants capacity will reach 1 million t/y.

Luberef has begun the front-end engineering design phase in Yanbu, Al Faqeeh said. The expansion, which will use Chevron Lummus Global technology, will add a hydrocracker unit, an Isodewaxing unit, hydrogen and hydrogen-recovery units, a sulfur recovery unit and a gas treatment unit.

During the same announcement, Luberef officials also unveiled a new logo and said that the company intends to extend its base oil marketing activities beyond the Middle East Gulf region to the Indian subcontinent, Europe, Turkey, China and Southeast Asia.

Luberef, headquartered in Jeddah, is 70 percent owned by Saudi Aramco and 30 percent by Jadwa Industrial Investment Co.

Japanese Firm Buys Spanish Ester Maker

Spanish ester producer I.Q. Lasem has been acquired by Nisshin OilliO Group, a Japanese supplier of plant and animal-based chemicals. Officials said the transaction helps Nisshin expand geographically and to enter new markets. The purchase price was not announced.

IQL, which is based in the Barcelona suburb of Castellgali, supplies esters for lubricants and cosmetics. It employs 40 people and has annual turnover of 2.9 billion. The acquisition of I.Q. Lasems shares will enable Nisshin Oillio to build up a stronger international presence for one of its businesses in developmental stages – the fine chemicals department, IQL said. The company also said that the acquisition will also allow it to develop more sophisticated esters to be used for lubricant base stocks and additives.

Nisshin is based in Tokyo, employs approximately 1,000 people and records annual revenue of more than 3 million. Officials said its financial and technical resources should allow it to strengthen IQL. At the same time, Nisshin plans to use its Asian sales network to expand IQL sales in that region.

Oil Pump Prompts BMW Recall

BMW AG stopped delivering, and will recall certain 2013 model year M5 and M6 cars equipped with turbocharged V-8 engines because of a defective engine oil pump that could damage engines. A delivery stop has been issued by BMW AG to correct a potential problem with the engine oil pump on certain S63TU-equippped vehicles, BMW stated in a technical service bulletin issued 21 September to BMW dealer principals, and sales, service and parts managers. Affected vehicles are the 2013 Model Year M5, M6 Coupe and M6 Convertible. Vehicles equipped with an affected pump could experience a sudden loss of oil pressure, which will result in severe engine damage.

According to BMW brochures, the models affected by the delivery stop and recall are equipped with a turbocharged, 400-hp V-8 engine, which the company refers to as S63TU. In the bulletin, BMW said its customer relations department is contacting customers that have already taken delivery and recommending customers not drive the vehicle. BMW did not specify in the bulletin how many vehicles were impacted.

GB Oils Appoints London Regional Manager

GB Oils has established a new operating region in London to serve the needs of commercial and domestic customers located in the area. Alex Ward has been appointed Regional Manager and will be responsible for managing all activities in the London region, including the Pace Fuelcare barges on the River Thames. His primary role will be to stimulate organic growth and promote the Pace brand.

Ward has worked for the company for 12 months, previously holding the position of Regional Manager for GB Oils in the South East. Prior to joining GB Oils, Ward held several managerial positions at petroleum companies, including Mabanaft and Shell.

Freudenberg Invests in India

Freudenberg Group announced a major investment in a new plant at Mysore, India. The Groups companies, Chem-Trend Chemicals Co. Pvt. Ltd. and Klber Lubrication India Pvt. Ltd. are headquartered in Mysore and manufacture specialty lubricants, release agents and maintenance products under the Klber Lubrication, Chem-Trend and OKS brands for the local and regional markets.

By 2016, Freudenberg will have invested around 130 crore rupees (19 million) in the production plant, which covers 40,000 square meters. An additional 9,000 square meter plot of land was acquired specifically for the new plant. The two companies at this location supply customers from a wide range of industries, including the automotive, energy and food industries, as well as wind energy.

Total Opens Asia Pacific Tech Center

Total Lubricants has opened a technical center for the Asia-Pacific region in India, including pilot labs that will develop lubricants formulated especially for the region. The 600 square meter facility will have state-of-the-art equipment to focus on four main business lines, which are lubricants, bitumens, fuel additives and special fluids, Francis Jan, senior vice president of Total Specialties, said. Besides developing products for future transmission technology, the facility will also have pilot labs for Asian products and be equipped to test base oils and additives to meet Asian requirements.

Total said that sales of two-wheel vehicles such as motorcycles rose 14 percent in the first three months of 2012 to more than 13 million in India alone. The technical center has been working to develop lubricants to improve fuel economy for two-wheel vehicles. One is a motorcycle lubricant that could withstand an engines high rpm and handle the wear protection needed by the gearbox, the company said. The other product is a rust preventive lubricant for metal that Total aims to launch in Asia.

The Mumbai technical center will continue developments launched and supervised by Totals worldwide R&D centers, such as oil for new powertrains, emulsions and polymer modified bitumen. The Mumbai technical center will further reinforce current research and development efforts at Totals research center in France. Depending on requirements, the center in Mumbai will collaborate with Totals R&D centers in France and external testing agencies to offer advanced solutions to customers.

SK Lubricants Names European Technical Manager

Nick Clague has been appointed European technical manager for SK Lubricants. His main responsibilities will be to provide technical service and solutions for customers, support the companys R&D efforts, and serve on industry committees.

Based in SKs London office, Clague has over 15 years experience in the lubricants industry. He has worked for Afton Chemical Ltd. as a chemist and customer technical service specialist for driveline, tractor and industrial oils. In 2007, he moved to Lubrizol as technology manager working as a formulator for heavy duty diesel oils.

New Nynas Marketing Director

Valentina Serra-Holm has been appointed Marketing Director for Nynas naphthenics business. She succeeds Jean-Marie Toullat who will assume the role of Senior Advisor at Nynas. Serra-Holm joined Nynas AB in 2001 and most recently served as Market Manager for the lubricants business.

Krahn Chemie Distributes for Petronas

Petronas Marketing (Netherlands) B.V. announced that Krahn Chemie Group, Hamburg, Germany, will distribute its Etro Group III base oils in Germany, Switzerland and Austria. Etro Group III base oils are characterized by high viscosity index values of over 130 and low Noack volatility properties. The base oils are said to meet the demands of top-tier lubricant formulations, including API SM, ILSAC GF-4, ACEA and various OEM specifications.

Primary applications for the oils are road transport, engines and powertrains, railroad, industrial, compressors, gears, greases, hydraulics, metalworking, and process oils. Annual production capacity for Etro Group III base oils is about 300,000 metric tonnes per year.

In Krahn Chemie we found a partner to grow in Europe, said Hans Groen, Managing Director of Petronas Marketing. Krahn Chemie has an excellent reputation and understands the lubricant market. Technical expertise, close customer relationships and a complimentary product range all this made Krahn an attractive partner for us.

We … look forward to this important new partnership with Petronas, says Karlheinz Schuster, Head of Division Performance Products of Krahn, The Etro Group III base oil fits our existing portfolio.

Besides Etro Group III base oils Krahn Chemies lubricant portfolio includes Infineums additives for transportation lubricants and fuels, PAO from ExxonMobil Chemical, naphthen­ics from Ergon and metal soaps from Baerlocher.

IMCD Partners with INEOS

IMCD Group announced a partnership with INEOS ChlorVinyls to distribute their Cereclor range of products in Italy, France, Belgium, Nordics, France, Switzerland and the UK. Cereclor is used in a wide range of applications including PVC, coatings, metalworking fluids and polyurethane foams where it functions as a low-volatiles inert plasticizer, viscosity modifier and flame retardant.

Cereclor is a perfect fit with our existing lubricants, coatings and PVC portfolio, says Marco Madeddu, International Product Manager IMCD. It will enhance our market penetration and provide our customers with a wider range of raw materials, increasing both logistical and product benefits.

Petroyag Builds Blend Plant

Turkish lubricant marketer Petroyag is building a second lubricant blending plant. The new facility, located in Gebze, Turkey, will have capacity to make 20,000 tons per year.

The company, which is headquartered in Kosekoy, Turkey, offers a wide variety of industrial lubricants, some manufactured by itself and sold under its own brands, others distributed on behalf of other suppliers. Formed in 1993, Petroyag currently operates a 30,000 t/y blending and filling plant in Golcuk, Turkey, on the southern shore of the east end of the Sea of Marmara. Gebze is on th seas northern shore, 45 kilometers east of Istanbul.

Petroyag said in a statement that it plans to use the additional capacity to increase overseas sales. It aims to export to 50 countries within three years. The company has previously said it has a goal to supply 20 percent of the industrial lubricants consumed in Turkey.

Turkey has a large and growing industrial base that has led some observers to describe its lubricant market as having much potential for growth. It is also one of the regions largest lubricant exporters, as domestic producers send products to the Middle East, Africa, Russia and Central Asia.

Avista Oil Takes New Shareholder

German investment firm SKion GmbH acquired a 30 percent stake in used oil rerefiner Avista Oil. The companies did not disclose the value of the transaction but said SKion bought its stake from the original shareholders.

Avista said it will use the funds for acquisitions and to expand its rerefining capacity in Europe and the United States. The capital increase will enable us to drive forward our global expansion dynamically, Chief Executive Officer Bernd Merle said. SKions shareholding is a milestone for our enterprise: We gain a strong and industry experienced partner on our way towards a globally leading position in the production and sale of eco base oils, eco lubricants and by-products as well as recycled fuels.

Avista owns rerefineries in Germany and Denmark, recently bought a majority stake in a third in the Netherlands and is building a fourth in the United States.

SKion is an investment firm owned by German entrepreneur Susanne Klatten. Its holdings include full ownership of specialty chemical provider Altana, a 28 percent stake in SGL Carbon and parts of a wind turbine manufacturer and water purification company.

Shell Names New Americas Chief

Shell Lubricants named Istvan Kapitany as the new president of Houston-based Shell Commercial Fuels and Lubricants Americas, effective January 1. He succeeds Lisa Davis, who will assume the global position of executive vice president for strategy and portfolio for Shell downstream businesses, and will be based in London.

Since joining Shell 25 years ago, Kapitany has served in various commercial roles in Europe and Africa. He is currently vice president of Shell Retail Fuels Europe and Africa, a position he has held since 2006. In this role, he is responsible for the retail business in nearly 20 countries with about 11,000 retail sites.

While at Shell, Kapitanywas elected vice president of the Hungarian Oil Association and president of the Hungarian Business Leaders Forum. He graduated from College of Trade Budapest in business administration.