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Gazprom to Oil Russian Icebreakers

Russias Gazprom Neft Lubricants and Rosmorport, a major icebreaker fleet operator, signed a marine oils supply deal as part of a long-term strategy to increase the lube manufacturers share in the Russian lubricant market. Under the two-year agreement, Gazprom Neft Lubricants will supply marine lubes and greases to the operators subsidiaries located on the Russian coastlines of the Baltic and Black Seas, the Barents Sea north of Russia, the Sea of Okhotsk in the Far East and the Sea of Japan. The company will supply Rosmorports 16 branches with its range of marine oils under the G-Energy and Gazpromneft brands, Gazprom Neft Lubricants said in a news release.

The long-term strategy of our company is to increase its share in the Russian lubricant market to up to 18 percent by 2025, said Alexander Trukhan, Gazprom Neft Lubricants general director. The company now has a 14 percent share. To reach this goal, we have already collaborated with a number of large players in the [marine oils] sector, and at the same time we have conquered new market niches, extending the geography of our product sales.

RSC Bio Expands in Europe

RSC Bio Solutions opened a warehouse in Rotterdam, Netherlands, to distribute its biobased lubricants to European customers, particularly in the marine sector. The facility will support distribution of RSCs EnviroLogic brand of lubricants, hydraulic fluids and gear oils. The company attributes its need for expansion in Europe to its burgeoning relationships with original equipment manufacturers such as Netherlands-based AEGIR-Marine, Finlands Wrtsil and the United Kingdoms Rolls Royce.

Rolls Royce recently approved RSCs EnviroLogic 3068 as an environmentally acceptable lubricant for use in its marine stabilizer line, RSC said. Relationships with several global marine customers and partners have demonstrated there is an increasing demand in the European market for EnviroLogic products, which meet a wide range of environmental regulations and help reduce the risks associated with lubricant discharges, said Mike Guggenheimer, RSC Bio Solutions CEO.

The Rotterdam warehouse model is one that RSC Bio Solutions intends to replicate more broadly in Europe and other regions to support its multinational customer base, RSCs vice president of sales and marketing Lisa Owen told Lube Report. RSC currently serves these clients both directly and via partnerships with other companies such as Chevron, Grainger and DNOW. The company also appointed Richard Day as its new market manager for Europe. Day has 30 years of experience in the oils and specialty chemicals industries at companies such as Vickers Oils and Lubrizol.

Taminco Fetches U.S. $2.8 Billion

Eastman Chemical plans to acquire alkylamines and alkylamine derivatives producer Taminco for U.S. $2.8 billion. The merger agreement includes a 30-day go-shop period, during which Taminco, with the assistance of financial advisor Morgan Stanley, will actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals. For 15 days following the termination of the go-shop period, Taminco will be permitted to continue discussions and enter into or recommend a transaction with anyone that submitted a qualifying superior proposal during the 30-day period.

The transaction was approved by each companys board of directors. Apollo Global Management LLC, which owns a majority of Tamincos common stock, also approved Eastmans offer. The deal is expected to close in the fourth quarter of 2014, subject to approvals.

According to Eastman Chemicals acquisition presentation, Taminco has more than 1,000 employees at eight manufacturing facilities. Taminco produces amines through the reaction of primary alcohols with ammonia. Applications for Tamincos products include biocides, and metalworking and functional fluids. The company supplies raw materials for biocide production and also supports five active ingredients as biocides in a variety of applications. Tamincos amines are also used to make amine-based solvents.

Valvoline Cummins Opens Indian Lab

Valvoline Cummins opened a laboratory near Mumbai that will be used for research and development of lubricants and customer training. The joint venture – a 50-50 partnership between Valvoline and Cummins – did not disclose the cost of the center in Ambernath, but said it will be used to develop lubricants. The training center will provide training on lubricants, engines, transmissions and cooling systems to business partners and customers. Officials said the facility will be integrated with Valvolines existing R&D center in Lexington, Ky., United States.

Intesmo Launches Grease Plant

Russian grease-maker Intesmo pledged to reduce Russias reliance on imported grease and to also export its grease products during the opening ceremony of its plant in September. Intesmo (Innovative Grease Technologies) is a 75-25 joint venture between Russian Railways (RZhD), a state transportation monopoly, and Lukoil, the largest privately owned oil company in Russia. The Russian government considers RZhD important to the countrys economy and strategically valuable because it plays a key role in Russian industry and transportation.

The 1.3 billion ruble (U.S. $34 million), 30,000 metric ton per year grease plant is fully financed by Lukoil. It was ordered by RZhD in 2008 to replace the rail transporters outdated Kuzaks grease plant in Moscow, which is scheduled for demolition. The railway company is the largest grease consumer in Russia, using around 13,000 tons of grease for its carriages and railway construction machines annually. At least one third of the Intesmo plants annual production will go toward RZhDs needs, while the rest is meant for use in the countrys automotive and industrial sector, Oleg Mosin, the companys general director, said. Russia consumes around 60,000 tons of grease annually.

The plant will produce three types of Flex-branded greases: Polyflex greases for general use, Thermoflex high-temperature greases and Greenflex biodegradable greases. Finished products will be packaged in a variety of forms, from 200-liter barrels, to 18-, 10- and 1-liter buckets, to 1-liter and 500-milliliter cans, cartridges and 100 milliliter tubes, Mosin said.

After penetrating Russias domestic grease market, the company plans to promote its products in the European market as well. Our Hamina blending plant in Finland and [recently acquired] OMV lube plant in Vienna have few grease formulations in their product portfolios, and we want to rebrand them to start our Europe sales from there, Mosin said. The company also plans to supply neighboring countries such as Belarus and the Baltic states, as well as the railway companies of Central Asia.

SIP to Distribute Novvi Base Oils

SIP, a London-based marketer of specialty oils and fluids, announced an agreement with Novvi LLC to distribute Novaspec renewable base oils across Europe, Africa and the Middle East. We believe the Novvi value proposition offers a strategic fit with SIPs strategy to grow our business through marketing products from new technologies, where performance advantages are valued, said Kerry Larkin, SIPs director of marketing and development.

Novaspec is a renewable and biodegradable Group III base oil sourced from plant sugars. SIP says the base oils deliver synthetic performance while improving biodegradability, toxicity and renewability.

Oronite Names New ME Distributor

Chevron Oronite has appointed Dynamics Middle East FZC as the distributor for its OLOA additives and Paratone viscosity index improvers in the Middle East and Pakistan. The agreement covers Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Oman, Yemen, Kuwait and Pakistan also involves technical support to customers.

ExxonMobil Builds Singapore Grease Plant

ExxonMobil announced in September that it is building a grease plant at its site in Jurong, Singapore. The company did not disclose the new facilitys capacity but said it is scheduled to begin operating by 2016.

The grease plant, the companys second in the Asia-Pacific region, will be part of ExxonMobils Jurong refinery, on the main island of Singapore, and will be located next to its existing lubricant plant. The plant will manufacture Mobilith SHC, Mobilgrease XHP and Mobilux specialty greases for high-speed bearings, environmental protection, drive gear boxes, food machinery and electric motors.

In Asia-Pacific, particularly China, the demand for grease products is on the rise, and this new plant will help position us to meet that increasing demand and contribute to the growth of the regional economy, said Joanne Eu, Asia-Pacific marketing manager for ExxonMobil Fuels, Lubricants & Specialties Marketing Co.

The Jurong refinery is ExxonMobils largest in the world, with a capacity of 592,000 barrels per day. The company also operates a petrochemical refinery on Singapores Jurong Island.

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