Upshi Ghosh, project manager for Klines energy practice, presented a webinar on the study, Global Lubricant Additives: Market Analysis and Opportunities. By function, Kline projects antioxidants to have the fastest growth to 2017 at 4.9 percent per year, followed by dispersants at just under 3 percent, viscosity index improvers a little over 2.5 percent, and pour point depressants around 2.4 percent.

The top lubricant categories for additive consumption in 2012 were heavy-duty motor oil, accounting for 33 percent of global demand, and passenger car motor oil at 27 percent, Kline found. Additives used in other automotive oils accounted for 7 percent. Metalworking fluid additives accounted for 14 percent, followed by industrial engine oils with 13 percent, and general industrial oils at 4 percent. Other types accounted for the balance.

Three classes (dispersants with 25 percent, viscosity index improvers at 24 percent, and detergents with 21 percent) together accounted for 70 percent of total additive consumption in 2012. They were followed by antiwear agents at 7 percent; antioxidants, 5 percent; corrosion inhibitors and friction modifiers, each 4 percent; and emulsifiers at 3 percent.

As in finished lubricants demand – where passenger car motor oil and heavy-duty motor oil together account for 46 percent of global demand – PCMO and HDMO account for the vast majority of global additive demand, at 60 percent, due to more additization in HDMO and PCMO products, as compared to industrial products, Ghosh pointed out.

Key drivers for HDMO formulation and additive consumption include new engine technologies introduced in response to increasingly stringent emission limits, penetration of biodiesel, the shift to higher-performance oils and multigrades, and extended drain intervals.

On the PCMO side, Ghosh said trends affecting lubricant formulation and additive demand include the introduction of new specifications such as ILSACs GF-5 and GF-6 and ACEA 2012. The trend toward lower viscosity PCMO will also impact additives, especially friction modifiers, she said. Extended drain intervals will require increased dispersant and antioxidant treat rates, she said. And the growth of flexible fuel vehicles is expected to fuel an increased need for rust and corrosion inhibitors, as well as emulsion retention.

BP to Sell Aviation Turbine Oils Business

BP has agreed to sell its specialist global Aviation Turbine Oils business to Eastman Chemical Co. for an undisclosed sum. The deal, which is subject to regulatory and other approvals, is expected to be completed in the second quarter of 2014. The sale includes BPs aviation turbine oil manufacturing, blending and packaging assets in Linden, New Jersey, United States, laboratory equipment, product formulations and customer contracts.

BPs decision to sell the business followed a review of the companys lubricants portfolio. It decided that the Aviation Turbine Oils business would offer more opportunities for other companies wanting to invest in the sector. The business serves customers in over 90 countries and employs 47 people.

BRB Plans Expansion

BRB International plans a 4.5-hectare expansion at its headquarters in the Netherlands, where it will build a new oil additives plant. BRB – a producer and supplier of silicones, additives and chemicals – announced it signed a letter of intent with the municipality of Leudal to enable the company to realize its plans for an expansion at the Ittervoort industrial estate.

As a result of the companys expansion plan, half of the 9-hectare expansion planned by the municipality has already been accounted for. The expansion of the Ittervoort industrial estate can now be tailored to the requirements of BRB, the company said in an announcement.

In related news, the company announced it has added Stephanie van der Sanden to its sales team, responsible for the Benelux region with an expertise in fuel additives. Also, Juliane Benedet joined BRB as a Lubricant Additive Specialist.

Hyundai-Shell Group II Plant on Track

An API Group II plant under construction by Hyundai Oilbank and Shell is due to be finished in the second half of 2014, and could come on stream in September. The plant is located at Hyundai Oilbanks refinery in Daesan, South Chungcheong Province, South Korea. It will have capacity to make 650,000 metric tons of base oil per year (13,000 barrels/day).

Hyundai Oilbank holds a 60 percent stake in the facility, which broke ground in January 2013, and Shell will own the remaining 40 percent. The plant will make several Group II viscosity grades, including 60 neutral, 150 neutral and 500 neutral.

Hyundai Oilbank said that most of the output from the new plant will be exported through Shells distribution network to other Asian countries – mainly China. Some will also be used to supply the companys finished lubricants manufacturing plants.

In other news, Shell and Hyundai extended their Russian agreement for lubricant supply, training, technical support and marketing events. Under the deal, Shell will supply Hyundai Motor CIS service centers with its finished lubricants produced at its Torzhok plant, and will support dealers with technical, training and marketing activities over the next five years. Hyundai considers Shell its preferred lubricants supplier in Europe, and the renewed agreement also includes supply to the Korean automotive giants international service centers.

Total Lubmarine Expands to Lebanon

Marine lubricant provider, Total Lubmarine announced expanded availability of its marine lubricants at Lebanons major ports. The companys cylinder, trunk piston engine and system oils are now available at Tripoli and Beirut. The expansion comes amid a significant increase in the countrys shipping activity in the last two years and makes Total Lubmarine the first major lubricant provider to supply products in Lebanon.

Andrew Know, Commercial Director Middle East at Total Lubmarine said: By expanding our product availability to Lebanon at the ports of Tripoli and Beirut, Total Lubmarine is now well positioned to take advantage of the opportunities offered by the countrys burgeoning shipping industry. Already we provide marine lubricants at more than 1,000 ports in 100 countries, offering wider product availability than any other provider. This latest expansion means Total Lubmarine can support new and existing customers as they look to increase trade on emerging Middle Eastern shipping routes.

Valvoline Partners with TAM-Durabus

Valvoline announced a collaboration with TAM Durabus, a Slovenian commercial vehicle and bus manufacturer. Valvoline will become TAMs exclusive partner for lubricants and anticorrosion products for Europe, the Middle East and Africa. In a multiyear collaboration, all newly built vehicles in the region will use Valvoline products exclusively in the engine, transmission and gearbox, as well as water-based underbody coatings. TAM Durabus is a leading manufacturer of airport busses and its vehicles are used in some of the busiest airports around the world.

Orlen Reorganizes Lubes Business

Polish lube marketer Orlen Oil started the liquidation process of its Czech product distribution subsidiary. As of January 1, Orlen Oil Cesko, a distributor of the Orlen finished products in the Czech Republic that also covered Hungary and Slovakia, ceased to exist. The distribution changes in Czech Republic and Slovakia are the first step of a broader distribution remodeling, the Polish oil major acknowledged.

The sales activities in Czech Republic and Slovakia will be taken over by [Czech oil company] Paramo. It will be responsible for the distribution of Orlen Oils finished products to the existing and new clients on the territory of these two countries, the company said. Paramo is 100 percent owner of Mogul, a Slovak lubricants marketer.

Orlen stressed that the companys sales activities in Hungary have been taken over and would be continued by an independent, authorized distributor. This action is the result of a decision aimed at increasing effectiveness and strengthening our position in Central Europe, Orlen said.

Orlen Oil is a major Central Europe lubricants marketer. Headquartered in Krakw, it operates three lube plants in the Polish cities of Plock, Trzebinia and Jedlicze, each one specializing either in base oils manufacturing or in blending a specific range of lubes and greases.

New President for Nynas

Gert Wendroth has been appointed President of Nynas AB, effective March 1. He replaces Staffan Lennstrm who retired. Wendroth previously served as CEO of H&R AG, which operates two base oil refineries in Germany and a number of blending and filling plants for specialty products around the world. Before that he held various management positions in the Royal Dutch/Shell Group with a focus on B2B sales and marketing.

Evonik Completes Merger with Goldschmidt

Evonik Corp. announced it has successfully completed its merger with Evonik Goldschmidt Corp., a provider of specialty surfactants to numerous industries with a focus on the consumer market. As of January 1, 2014, Evonik Goldschmidt Corp. is fully incorporated into Evonik Corp. and is no longer a separate legal entity, said Dr. Reinhold Brand, senior vice president and general manager of Evoniks Consumer Specialties North American Business Unit. Among Evoniks Consumer Specialties offerings are ingredients used to make everyday consumer products such as fabric softener, car care products, shampoo, hair conditioner and toothpaste as well as industrial chemical products for the agricultural, metalworking, labeling and oil and gas industries.

Multisol Appoints Commercial Director

Multisol UK has named Simon Brander Commercial Director with commercial responsibility for the UK Oil Products business as well as the management of strategic group supply partners and assisting in the growth of the business across wider geographical areas. Brander has been with Multisol for over 15 years, serving as Marketing Assistant, Account Manager, Sales Manager and Business Manager, a position he has held since June 2009.

Polaris Opens Polish Lab

Polaris Laboratories has established a new laboratory to serve European customers in Poznan, Poland. The city of Poznan was selected based on its location, shipping capabilities and available laboratory space. The laboratory is located at the Poznan Science and Technology Park, which is designed to help businesses work with students. European Territory Sales Manager Gwyn Simmonds joined Polaris to assist existing European customers and seek out new customers who will send their samples to the Poznan facility.

Gulf Petrochem Names New Head

Gulf Petrochem Group introduced Sudip Shyam as its new Global Head of Base Oils. Shyam has more than 19-years experience in the downstream lubricants industry and base oils trading. Prior to joining Gulf, he headed the base oils & lubricants portfolio at Optima Energy SA in Geneva, Switzerland. Earlier, he headed the lubricants business for Conoil Plc., Nigeria, and also worked with Valvoline, Total, Castrol and Gulf Oil.