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Car Market Drives Russian Lubes

Russias fast-growing vehicle market is causing significant changes in the country’s motor oil sales, stricter compliance by lube manufacturers with original equipment manufacturer standards and the development of private lube labels, according to Andrey Yasnovskiy, LLK-International’s head of technical support. Speaking at RPIs Lubricants Russia conference in Moscow in November, Yasnovskiy said the nation has developed a huge car industry, with international automakers such as Ford, GM, Toyota, Kia and Nissan-Renault seizing opportunities in the market.

Togliatti-based AvtoVaz is Russias largest automaker with an estimated annual capacity of 950,000 cars. Gaz Group, of Nizhny Novgorod, is second with a capacity of 265,000 cars, and Izhevsk-based IzhAvto is third with a capacity of 220,000 cars. Japan’s Toyota can build 200,000 cars in Russia annually, and other producers can build a combined 170,000 cars annually.

The lubricants arm of Lukoil, LLK-International is Russias biggest lubes producer and holds a 30 percent share of the automotive lubricants market. In 2011, the company produced 1.2 million tons of base oil and finished lubricants, or 45 percent of the countrys total output of those products. The company operates seven base oil and lubricants blending plants located in the country and abroad.

The changing car market will affect habits of consumers shopping for lubes, Yasnovskiy said. In 2012, 48 percent of Russian car owners bought motor oil in specialty stores, 20 percent in service stations, 13 percent in petrol stations, and 9 percent in auto parts stores. Nine percent bought motor oil in hypermarkets and department stores, and only 1 percent bought over the counter, according to a study by the market research firm Synovate.

In Russia, more service stations are carrying OEM branded motor oils. LLK believes this trend will continue because “motor oil today is considered to be an engine part.

Hoover Container Acquires Consult Supply

Hoover Container Solutions Inc. has acquired Consult Supply AS, a container provider based in Stavanger, Norway. The expansion into Norway adds to Hoovers existing locations in Australia, Malaysia, Brazil, United Arab Emirates and the United States to supply intermediate bulk containers, off-shore containers, cargo carrying units, container workshops and ISO tank containers. Consult Supply serves the European and Asian offshore markets with chemical tanks, CCUs, baskets, mudskips and custom container workshops. To support its products, Hoover also provides cleaning, recertification, reconditioning, transportation, GPS asset tracking and remote tank liquid level monitoring.

Rosneft Starts 2013 with a Bang

Rosneft, one of Russia’s biggest lubricants marketers, increased its supply of automotive lubricants in 2012 and recently introduced two key products, the company said. Russia’s biggest crude oil producer increased its supply of lubes to AvtoVaz, one of Rosneft’s key customers, by 65 percent in 2012, compared to the year before, a spokesman at the companys Novokuibyshevsk lubes and additives plant said. The plant makes the lubricants that Rosneft supplies to AvtoVaz.

Last year, Rosneft and AvtoVaz signed a contract that includes partnering to develop new automotive lubricants. And, in November 2012, Rosnefts new brand, Rosneft Maximum Service, became the factory-fill oil for the new Lada car.

In December the Novokuibyshevsk plant introduced its new transmission lubricant under the Rosneft Kinetic brand. This product is slated for factory fill in Lada’s transmission and can be used for life or up to 120,000 kilometers.

After Lukoil, Moscow-based Rosneft is the countrys second largest lubricants marketer. In 2011 it produced 468,000 tons of lubricants and base oils, and held a 20 percent share of the Russian lubricants market, according to the Moscow-based consultancy InfoTek. In 2012 the Novokibyshevsk refinery produced 386,000 tons of base oils and finished products, or almost 90 percent of Rosneft’s total, the company said. The plant sells its products in 49 Russian cities and regions, while 29 percent of its production is exported to Germany, Poland, Ukraine, Finland, Hungary and the three Baltic countries, Lithuania, Latvia and Estonia.

Intertek Acquires Tickford

Intertek Group plc has acquired Tickford Test Technology, a vehicle engine testing company, from its management shareholders for 5.5 million (6.4 million). Tickford tests gasoline and diesel engines for a range of characteristics, including durability, performance and catalyst effectiveness. It also tests fuels and lubricants for efficiency and government and industry environmental standards.

Tickford complements similar services provided by Intertek in the U.S. and Asia. The company will form part of Interteks Commercial & Electrical Division.

IMCD Purchases Chemimpo

IMCD Group, a specialty chemicals and food ingredients company, has acquired Chemimpo South Africa (Pty) Ltd. through its subsidiary IMCD South Africa. IMCD said that the Integration of the two companies in South Africa will establish it as the leading specialty chemical company in Sub-Saharan Africa. The combined operation will have approximately 90 employees.

Sonneborn Names President & CEO

Sonneborn LLC appointed Paul Ray-mond III president and chief executive officer in December. Raymond brings over 20 years experience to the job, having served most recently as president of Ashland Water Technologies. Prior to joining Ashland, he worked at various positions at General Electric and Hercules.

Viscolube Taps Cadognola

Marco Codognola has joined Viscolube as sales and business development director. In this position, he is responsible for feedstock sourcing, marketing and sales, and business development. Codognola previously worked for 20 years in the international energy sector, developing and structuring both conventional and renewable power generation projects.

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