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Grease Production Dips

Lubricant companies produced an estimated 1.12 million metric tons of grease in 2012, according to data released in June by the National Lubricating Grease Institute. In 2011, output was a slightly higher 1.16 million tons, the NLGI 2012 Grease Production Survey Report said.

Almost 40 percent of the 2012 volume was manufactured in China, which is more than all of the grease produced in Europe and North America combined. Chinas grease producers made a whopping 422,000 tons in 2012.

North American grease output reached 215,000 tons in the same year, or 19 percent of the global total, while Europes producers made 182,000 tons (16 percent of the total). The next-largest grease producer is the Indian subcontinent, which churned out 87,000 tons in 2012, the survey shows.

Lithium soaps, including lithium and lithium complex, continue to be the foremost thickener type with just over 75 percent of the global total, followed by calcium-thickened greases and then polyurea greases, NLGI reported. There are some striking differences between regions. Nearly 27 percent of the greases in Japan are polyurea-thickened greases, for example. India produces zero polyurea and slightly over 90 percent of lithium types. Africa and the Middle East favor calcium soap greases more than any other region does.

Respondents to the 2012 survey defined about 80 percent of all grease production this way, he said. On a global basis, mineral oils represented 92 percent of the volume, synthetics and semi-synthetics were a bit over 7 percent, and biobased products ac-counted for less than 1 percent.

NLGIs is the worlds most com-prehensive grease survey. The 2012 edition consolidates data from 213 reporting companies that operate 250 grease plants. Some countries, such as Japan and China, compile their data on the national level and submit this summarized information to NLGI. All data is gathered in confidence by the independent research firm Grease Technology Solutions LLC, so individu-al company information is never seen by anyone else.

Copies of the 2012 Grease Produc-tion Survey are free to NLGI member companies and participants in the survey. Others may purchase a copy for $200 from NLGIs website: www.NLGI.org/products-page.

Turmoil Continues at Delfin

Delfin Group USA terminated com-pany President John Gordon in late April. The lube blender had fired its previous president, Markos Baghdasar-ian, in September following his arrest on charges of export-ing aviation oils in violation of a U.S. economic embargo against Iran.

Gordon confirmed to Lube Report that Delfin termi-nated him as president on 25 April, with no advance notice or reason provided. He declined to comment beyond that. Gordon, who had been vice president at Delfin, was pro-moted to president in April 2012.

The company hasnt yet named a new president, Delfin USA General Manager Billy Ackerman told Lube Report. Its an internal issue were dealing with, he said, when asked who is in charge at the company. An industry source who works with Delfin told Lube Report that Delfin USAs Russian owners have taken over management decisions for Delfin USA.

The U.S. Department of Justice charged Baghdasarian with the sale and export of aviation oils and polymer to Iran in violation of sanctions imposed over Irans nuclear program. The government alleged that Baghdasarian engaged in prohibited transactions with customers in Iran, including Pars Oil, which is owned by the government of Iran. Baghdasarian pleaded guilty and was scheduled to be sentenced in June.

In September the U.S. Commerce Department lifted restrictions on Delfin, allowing the company to resume normal domestic and international trade, compliant with Export Administration Regulations and other applicable U.S. law.

ECHA Inventory Adds Information

The European Chemicals Agencys Classification & Label-ing Inventory now provides information about the classifi-cation and labeling of all harmonized substances included on Annex VI to the Classification, Labeling and Packaging Regulation according to the criteria set out in the Danger-ous Substances Directive.

ECHA added this information in order to help users who still classify and label their mixtures according to the DSD. Although fully replaced by the CLP Regulation for substances, the DSD criteria can still be applied to mixtures until June 2015. ECHAs inventory also includes the catego-rization of harmonized substances according to the Seveso II Directive. All substances are searchable using their sub-stance identity (such as name, EC number, Index number, etc.), but only CLP criteria can be used when searching for particular classifications.

Kenya Considers Lube Market Regulations

Kenyas Energy Regulatory Commission recently invited the Kenyan public to submit written comments on pro-posed regulations that would require all businesses handling lubricants to be licensed. The law, introduced in May, would increase regulation on substandard products in the industry by imposing licensing requirements on any busi-ness importing, blending, exporting, packaging, storing or transporting lubricants. It would require new lube facilities to acquire construction permits granted by the commission.

The Kenyan lubricants market has more than 100 opera-tors. While the 2006 Energy Act empowers the ERC to regulate the lubricants business in Kenya, many key players report that there is still a proliferation of substandard lubes being sold on Kenyas streets.

Although there is a standard for each oil grade, the en-forcement has been lacking, resulting in low-quality prod-ucts being marketed by various companies, said Joseph Ndugu of Lubes Africa Ltd., publisher of a trade magazine. He added that many players in the lubricants sector are welcoming this move because it will create a level play-ing field for all marketers and prevent situations whereby companies undercut each other by introducing cheaper but low quality products.

Oronite Leadership to Change

Desmond King will become president of lubricant additives manufacturer Chevron Oronite 1 September following the 31 August retirement of Ron Kiskis, who has held the post for 13 years. King is currently president of Chevron Technology Ventures, and is the former manag-ing director and chief executive officer of Caltex Australia Ltd.

Kings appointment is part of a thorough shuffling of Oronites top brass. Jirong Xiao was named vice president of sales and marketing, and Barbara Smith appointed vice president of products and technology. Those changes became effective June 1, when Colin Parfitt, who had been vice president of sales and marketing, became the presi-dent of supply and trading in Chevrons recently realigned gas and midstream organization.

Xiao had been the vice president of products and tech-nology for Oronite since 2006. He joined Chevron Research and Technology Co. as a research engineer in 1990, and in 1997 became an area business manager in technology marketing. He held other positions of increasing responsi-bility within the downstream group, including assignments in Chevrons global marketing organization.

Smith was the senior business manager for refinery strategy at Chevrons Richmond, California, U.S., refinery since 2010, after spending time as technical manager at the same facility. Smith began her career with Chevron as a research engineer in catalyst and process development in 1989. In 2000, Smith became strategic planning manager for the downstream technology company and advisor to senior leadership.

Mobil Replaces Esso Brand in Russia

ExxonMobil will no longer offer its Esso semi-synthetic motor oil brand in Russia, instead offering its Mobil brand, which the company says is better established. Esso Ultra and Ultra Turbo Diesel 10W-40 products will be rebranded to Mobil Ultra 10W-40 and offered throughout Russia in 1- and 4-liter canisters.

The company said it will also recommend use of Mobil Super 3000 X1 5W-40 and Mobil Super Turbo Diesel 3000 X1 5W-40 as replacements for Esso Ultron and Esso Ultron Turbo Diesel 10W-40, another Esso brand that was no longer available after June of this year.

Intertek Open in South Africa

Intertek announced the opening of a lubricant testing and oil condition monitoring laboratory in Johannesburg, South Africa. The company intends the facility to serve customers throughout Sub-Saharan Africa.

The Intertek OCM laboratory provides lubricant analysis, used oil testing and oil conditioning monitoring services. Intertek also provides lubricant manufacturers with feed-stock and product quality control analysis, and conducts automotive engine qualifications testing to help lubricant manufacturers develop products approved for new govern-ment regulations and industry standards.

Intertek claims that shipping of customers lubricant samples is easy to arrange, with prompt testing and report-ing to clients. Based in Houston, Texas, U.S.A., Intertek is a testing, inspection and auditing company.

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