REACH Rough on Small Businesses
REACH is accomplishing most of its objectives thus far, according to the European Commission, but changes must be made to reduce the programs negative impacts on vulnerable small- and medium-size businesses. Following an in-depth review of REACH (Registration, Evaluation and Authorization of Chemicals), the commission determined that the program functions well, Michal Kubicki told the 2013 UEIL Congress in October. However, the commission is recommending a push to increase awareness among small players, along with a review of the fees for registration. Whats needed, he said, is to begin reducing administrative burdens on small-to-medium size businesses while assisting them to fulfill all their REACH obligations.[These businesses] – many of which are downstream users – are more vulnerable and insufficiently aware, Kubicki, an economist at the commission, told the congress. [They] face more difficulties to integrate REACH requirements into daily operation and are more vulnerable to the financial constraints. Overall, REACH has decreased risks significantly and has helped make available more and better information on substances already registered, he continued. Furthermore, the program has increased communication in the supply chain. Suppliers are more informed about customer uses and needs, he said. Weve also witnessed a reorientation of research and development expenditure toward regulatory compliance, and there has been good progress with joint submission of dossiers and data sharing.The European Chemicals Agency is currently reviewing the needs of small-to-medium businesses between now and 2018, Kubicki informed the congress, while the commission will be holding workshops such as the one held December 10 and 11 in Brussels to help address the problem. Purpose of the workshop was to bring together small- to medium-size businesses and larger companies to find solutions to registration problems, including participating in substance information exchange forums.
Tanzania Enforces Lube Standards
The Tanzania Bureau of Standards has intensified efforts to rid the East African country of substandard lubricants but has more work to do, some experts say. In February 2012, the bureau implemented the Pre-Shipment Verification of Conformity (PVoC) regulation in partnership with three global inspection and certification services firms: SGS, Intertek and Bureau Veritas. The regulation mandates that the three firms certify that every lubricant product, including base oils and finished lubes, complies with Tanzanian national standards before being imported into the country.
The bureau has recorded some successes in the war on substandard lubes, according to Roida Andusamile, public relations officer for the Tanzania Bureau of Standards. To some extent the PVoC program has reduced the amount of substandard lubes being imported to Tanzania and we hope to reduce it more.
However, the bureau needs to do more to sustain the war on substandard lubes, according to Irfan Khan, general manager for the Tanzania plant of Germany-based General Petroleum. Khan said that the regulation is effective but emphasized that the people who import substandard products dont follow rules and regulations. Substandard lubes are smuggled through Zanzibar by briefcase businesses, he said. They dont have offices; they are not traceable and they are making a lot of money.
George Morvey of Kline and Co. concurs. Counterfeiting of lubricants is essentially limited to fast-moving products like engine oil and motorcycle oil, and less to industrial products like turbine oil that is typically purchased in bulk or large capacity drums. Whats essential to the success of the PVoC regulation, he said, is that industry and government must dedicate the resources and finances to stay one step ahead of this illegal activity.
Despite Outcry, Lube Plant to Move
Russian authorities followed through on plans to move a Moscow-based specialty lubricants plant, despite protests by industry sources and marketers that it could harm some industrial sectors and hike specialty prices. State-owned Moscow Neftemaslozavod (MNMZ) is excluded from the proposed federal properties privatization agenda planned for 2014-2016, according to a December 9 government decree published on the Russian governments website.
The decree states that in correspondence with the Russian president and central government orders to ensure realization of construction of the Yaroslavsky railway transfer station, it is necessary to hand over 100 percent of the shares of the federally owned Moscow Neftemaslozavod to the possession of the city of Moscow. The directive further implies that after the ownership transfer, Moscow city authorities will move the specialty lubricants plant to another site. This will prepare a plain field [now occupied by the plant] for development of the Yaroslavsky railway transfer juncture.
The authorities believe that relocation would improve the transport situation in that part of the ring railway that encircles the center of Moscow and would be a positive impact on the environment.Located in the industrial zone near prospekt Mira, MNMZ produces mineral and synthetic specialty oils such as aviation, hydraulic, motor, industrial and multipurpose. It also produces antifriction, preservation and tightening greases, as well as waxes and pastes. The relocation could take approximately five years and could cost from U.S. $50 million to $100 million, according to industry people. They said that the long term relocation and subsequent building of the plant could lead to a shortage of specialty lubricants in Russia, which could cause a hike in prices for such lubricants.
Hydrodec Inks Two Re-Refining Agreements
Hydrodec Group will collaborate with Essar Oil UK on a joint venture oil rerefining center at Stanlow, U.K., including a rerefinery with API Group II+ and III base oil capacity by 2016. The collaboration would combine Essar Oil UKs existing infrastructure, expertise and operating capability with Hydrodecs proprietary technology and feedstock from Hydrodecs OSS Group subsidiary, which collects used oil.
Two discrete rerefining operations are envisaged, initially for transformer oil and subsequently for general used oil, with a potential combined [feedstock throughput] capacity of up to around 130 million liters per annum and potential revenues of approximately U.S. $150 million per annum at attractive rates of return, Hydrodec stated in its news release.
The company said the collaboration will be conducted in three phases: Establishing a transformer oil rerefining business utilizing Hydrodecs existing technology, developing Hydrodecs new lubricants technology through a pilot plant stage, and establishing a general used lubricant rerefining business deploying the new lubricants technology.Hydrodec also entered into an agreement to co-locate its Australian transformer oil re-refining operation at the Southern Oil Refining Pty Limited lubricant oil re-refinery in Wagga Wagga, New South Wales. Southern Oil will operate the combined facility under a tolling agreement. Co-location is conditional on permitting for the expanded operation at Bomen which has already been applied for.
Hydrodec will retain all rights and ownership of the Hydrodec brand, business and technology in Australia and will continue to manage all commercial aspects of the business including used oil procurement as well as sales and marketing of Superfine transformer oil and naphthenic base oil. Southern Oil has also agreed to support development of Hydrodec technology for used industrial and engine oils and would be a potential partner for the new technology in Australia.
ExMo Chemical Names Green as VP
ExxonMobil Chemical announced today the appointment of Russ Green as vice president of its global synthetic fluids business. He replaces Chris Birdsall, who became manager of planning and business development for ExxonMobil Chemical. Green joined ExxonMobil in 1991 and has held a variety of positions in the fuels and lubricants, refining and supply, investor relations and corporate planning organizations at locations including Brussels, Belgium, and Shanghai, Peoples Republic of China. Most recently, he served as general manager for an ExxonMobil China affiliate.
Liqui Moly Invests 20 Million
German motor oil and aftermarket additive manufacturer Liqui Moly will invest nearly 20 million in development and production by 2015, including 17 million in its lubricant business. The company will double its laboratory capacity and boost oil production. More personnel, more equipment, more space – quality control and new developments are vital for us and are simply a part of our Made in Germany concept, Ernest Prost, Liqui Molys managing partner, said in a news release. This includes installing new tanks to increase the companys production capacity and make things more flexible.
Ulm, Germany-based Liqui Moly will also invest in its grease manufacturing plant, procuring new grease vessels to meet increasing demand. An additional 2.5 million investment will go toward production of aftermarket additives, including a new filling plant capable of handling production peaks, new tanks to triple storage volume and a new exhaust purification system to filter emissions.
The 20 million investment – largest in the companys history – follows investments of 12 million that the company made two years ago for storage tank facilities. The company has increased its number of employees by 53 to a total of 646 in 2013. Liqui Moly also plans to hire 12 new employees. The companys products are sold in Germany and in 100 other countries.
Total Opens Saudi Blending Plant
Saudi Total Lubricants Co. has inaugurated a blending plant in the Industrial Valley in King Abdullah Economic City, 120 kilometers north of Jeddah. The 65,000 square meter facility will produce automotive and industrial lubricants with a fully automated blending system and filling machines. The plant will have an annual production capacity of 25,000 metric tons in a single shift.
This is a major step toward improving the companys efficiency so that we can be the first choice in the Saudi market. The decision to establish this plant was based on a thorough study of the growing lubricants market in KSA, which is propelled by one of the fastest-growing and most stable economies in the world, stated Momar Nguer, senior vice president of Africa/Middle East, Total Marketing & Services.
Nizar Raydan, managing director of Saudi Total Lubricants Co., added, the decision to invest [here] was governed by a variety of reasons. The first … is direct access to a huge seaport that has immense potential. The second is that King Abdullah Economic City has a highly developed basic infrastructure and very advanced utilities. Therefore, we decided to make [it] one of our main supply lines in the region.
Sea-Land Elects New Chairman
After more than 30 years, Jim Hanesworth stepped down from his position as Chairman of the Board of Directors for Sea-Land Chemical Co. Board member Don Smith succeeds Hanesworth, who will remain on the board as a director.