Wind Turbine Gear Oil Market to Double
The global wind turbine gear oil market is forecast to grow to 41,000 metric tons by 2020 compared to an expected 20,600 tons in 2014. In a presentation at the ICIS African Base Oils & Lubricants Conference in Cape Town in November, Evoniks Franco Camera noted that of the total 12,000 tons would be factory fill oils and 29,100 tons (or more than 70 percent) would be service fill oils. Service fill will be a good opportunity for smaller lubricant companies to enter the market, Camera said.
Wind turbine installations saw an exponential capacity increase between 2004 and 2009. However growth has slowed since then because of the economic slowdown, Camera said. In 2013, 35 GigaWatts of capacity was added, mostly in the United States, compared to 44 GW in 2012.
Nigeria Reverses Base Oil Import Tariff Cut – Maybe
The Nigerian Custom Service stated that base oils will once again be subjected to an import tariff of 10 percent, cancelling previous announcements that the duty was being cut to 5 percent. Officials with the Lubricant Producers Association of Nigeria expressed dismay that the agency would reduce a tariff reduction for which it had lobbied.
However, at last months ICIS African Base Oils and Lubricants Conference, Obinna Onuoha, CEO of Premiere Petroleum Ltd., said the cut had not, in fact, been rescinded but that customs agents had not yet been directed by the government to enforce it. He hoped the situation would be cleared up soon.
Base oil importers pay a value-added tax of 5 percent, plus the import tariff. Domestic blenders called for the tariff to be halved, saying it would reduce their costs and help them compete with imported finished lubes.
Lupan members also objected to the NCSs decision to issue debit notes to local blenders that have already cleared their imported base oils at the lower 5 percent tariff. There is so much at stake here – imagine, they are saying we should [pay another] 5 percent when we have [already] paid to clear our goods. We cannot do that because it will amount to retroactive action, said Taiye Williams, managing director of Lubcon International.
Quaker Buys Binol
Quaker Chemical Corp. announced that it has acquired Binol AB, a biolubricants producer based in Raisio, Finland, for U.S. $18.9 million. Binol develops, produces and markets environmentally friendly products to the metalworking, forestry and construction industries. In addition, Binol has distributed Quakers water-miscible products in the Nordic region since 2004.
Binol has 22 employees, and Quaker intends to operate the company as a wholly owned subsidiary. Michael Barry, Quaker chairman, CEO and president, commented, This acquisition provides a strategic opportunity for Quaker to leverage Binols environmentally friendly technology and customer-aligned products, including neat oil technology for metalworking applications and biodegradable hydraulic oils.
Lukoil Expands in South Caucasus
Russian lubricant marketer Lukoil expanded its lube sales in the South Caucasus and is confident it can expand production and establish more distribution channels in the region. The company discussed its marketing initiative in Georgia, Armenia and Azerbaijan during a regional vehicle dealership convention held earlier this year in Georgia. Our presence here is a result of the dynamic development of the regions economies, Alexey Strelchenko, LLK Internationals deputy general director, told convention attendees.
Beginning October 1, Lukoil-Georgia, the companys distributor in the country, started to supply its line of Avangard-branded lubricants to the public bus system of Batumi, the Black Sea seaside capital of Georgias autonomous Adjara republic. The contract is limited to one year with an option for extension. Under the contract, the Russian oil major pledged to supply 180 tons per year of Lukoil Genesis-branded products for more than 3,000 2013 and 2014 Ford Transit microbuses.
At the dealership convention, Lukoil confirmed it is studying the feasibility of building a refinery in Georgia. The country is a main transportation hub for Lukoil products shipped to Central Asia and the Middle East.
Lubricant demand in Georgia is around 12,000 tons per year, according to the countrys statistical department. The market relies completely on imports. Georgias industrial lubricant demand is growing and amounts to 2,500 t/y.
In Armenia, Lukoil lubricants can be found in stores across the country. The company also supplies lubes to Armenias state power distribution company.
In Azerbaijan, the company is principal lube supplier to SOCAR, the national oil major. It also supplies factory fill oils for Belarus-branded tractors and other type of machinery and cars assembled at Ganja Auto Plant, located in the city of the same name. LLK is a factory fill supplier for a Lifan automobile plant in Nakhchivan.
Lubrizol Bolsters French Plant
Lubrizol invested U.S. $20 million in its additive blending operations in Le Havre, France, saying it will help the company cope with increased complexity brought about by low SAPS and high-tier engine oils. The engine oil market has become fractured by a growing number of performance specifications, as the industry balances demands for better fuel economy and stronger wear protection. At the same time, restrictions on the use of sulfated ash, phosphorus and sulfur – all found to compromise different emissions control technologies – have pushed formulators to employ new chemistries.
The companys Le Havre expansion will include the addition of component tanks, finished product tanks and automated manifolds, among other upgrades to enhance safety and efficiency. The expansion will also provide greater flexibility of supply and better service to its customers, the company said, allowing it to manage new, more complex formulations.
Chemtura Expands Antioxidant Output
Chemtura announced it will undertake expansions of its antioxidant capacity at plants in Canada, Italy and Taiwan. Officials said the company is responding to demand growth resulting from the push for greater fuel efficiency in automobiles.
Philadelphia-based Chemtura produces alkylated diphenyl amine liquid antioxidants for lubricants at plants in Elmira in Ontario, Canada; Latina, Italy; and Kaoshiung, Taiwan. It plans to boost capacity at those locations by 20 percent, 25 percent and 10 percent, respectively, all by 2015. ADPA antioxidants are one of various chemistries that the lubricant industry uses to help slow the process of oxidation, one of the main factors limiting lubricant life.
As the automotive industry sets more stringent regulations and requirements for fuel economy, there will be an unmet demand for antioxidants in the marketplace by 2017, Kerim Wewer, head of asset management in Europe, the Middle East and Africa for Chemtura Europes Industrial Performance Products division, said in a press release. We intend to ensure a continuous supply of antioxidants to the industry through these capacity additions along with future expansions.
Officials declined to disclose the cost of the expansions or the capacity of each facility. They noted that the Elmira plant has the greatest capacity.