Croda CEO Steve Foots said, This significant increase in production capacity is a strategic investment to ensure that the site can continue to [support] our global business and is part of our global capital investment plan for the Group. The company added that new utilities infrastructure at the site will enable the plant to improve its efficiency, reliability and sustainability; it already obtains more than 90 percent of its steam and electricity requirements from low carbon sources.

Ghana, Nigeria Lead West Africa

Prospects are improving in West African lubricant markets, especially Ghana and Nigeria, according to two speakers at the ICIS World Base Oils and Lubricants Conference in London in February. Both Lubcon Ltd.s Taiye Williams and Afton Chemicals Craig Stoddart agreed that the two countries are among the five most attractive markets in Africa.

With a gross domestic product growth forecast of 5.9 percent and a stable government, Ghana is an important gateway to the West African market, Williams said. The country enjoys strong trade with its neighbors and others on the continent, especially Nigeria and South Africa. The regulatory framework is highly rated by the World Bank, Williams pointed out, and the business environment is generally considered to be more favorable than most African countries.

Stoddart noted that heavy-duty vehicle sales in Ghana are expected to grow 38 percent by 2018. The passenger car parc is expected to increase 32 percent by 2018.

Nigerias lubricant market totaled 450,000 metric tons in 2015 and is expected to grow to 805,000 t/y by 2022. Williams related that the country is seeing a turn toward better quality lubes as consumer education improves and attitudes toward equipment maintenance change.

There has also been a shift in how lubricants are marketed, with bottles beginning to appear on shelves in shops and supermarkets. Further, the number of OEMs with manufacturing plants in Nigeria is set to increase from 15 to 45, including facilities run by Toyota and Honda.

ATIEL Warns of Muddled Claims

ATIEL, the European lubricants industrys technical association, announced it has developed new guidance for engine lubricant marketers on making valid performance claims against more than one category within the ACEA (European Automobile Manufacturers Association) 2012 European Oil Sequences. In a news release, the association said the guidance is in response to findings of an ATIEL quality survey that revealed a number of products on the market bearing incompatible ACEA Category performance claims and others with partial or incomplete claims.

The Association reiterated that combined performance claims against two or more Categories on the same formulation are possible only where all the associated chemical limits and physical testing requirements can be met. It stressed that, in certain instances, a combined claim is either technically impossible due to conflicting demands or highly unlikely due to minimal overlap in physical and chemical properties or requirements that are unlikely to be met.

For combined performance claims guidance – including a matrix table identifying possible, impossible or highly unlikely claims – visit ATIELs website.

Hydrodec Sells U.K. Operations

Citing tough market conditions, Hydrodec Group sold its United Kingdom operations – including its waste oil collection business and a proposed rerefinery – to a substantial shareholder for 1 (U.S. $1.43) and assumed debt. The company said it conducted a detailed review of operations following a significant deterioration in their outlook. This deterioration has been driven predominantly by the rapid decline in global oil prices and continued challenging market conditions, which have resulted in Hydrodec (UK) Ltd. generating an increasing level of significant losses, the company stated in a news release.

Despite implementing extensive restructuring and cost-saving measures during 2015, the company said it remains exposed to lower prices for petroleum products, and its U.K. operations remain unprofitable. In December, the company held an auction that generated a pool of potential buyers. After reviewing offers, the board chose shareholder Andrew Black, citing his ability to execute the transaction on an expedited basis and the potential to offer Hydrodec a share of future profits from the rerefining project.

Black holds 24.58 percent of the companys voting shares and will take on 1.2 million of existing indebtedness to third parties, the news release said. The deal gives Hydrodec rights to receive 10 percent of Blacks entitlement to future profits from the rerefining project. Black will bear all risk and responsibility for developing the rerefinery.

In another move, Hydrodec appointed Chris Ellis, previously acting chief executive, as chief executive. Ellis succeeded Ian Smale, who stepped down in December. Ellis said the disposal of the U.K. operations releases working capital that will position the company to deliver its plan of profitable trading in 2016.

IMCD to Distribute
Solvay PFPEs

IMCD N.V announced that it has become the Solvay Specialty Polymers distribution partner for lubrication grades of Fomblin PFPE in the EMEA. Fomblin PFPEs are fluorinated lubricants for use in aggressive chemical and high-heat environments. They are often formulated into greases for applications in the chemical, electronic, military, nuclear, data processing and other industries.

Infineum Names
Russell CEO

Infineum International Ltd. has appointed Trevor Russell as its new Chief Executive Officer, replacing Xavier le Mintier who will step down at the end of June. Russell has been part of Infineums senior leadership team since 1999 and most recently held the position of Executive Vice President, Sales and Supply.

BASF, Lumar Collaborate

BASF and Lumar announced an exclusive collaboration in the marketing of specialty amines for cooling lubricants and metalworking fluids in Europe. Lumar will market BASFs specialty chemicals used for metal processing in France, Belgium, the Netherlands, Spain, Italy and Portugal.

BASFs Intermediates division offers a portfolio of specialty amines for cooling lubricants for drilling, turning and milling metals, glass and ceramics. They help reduce friction and tool wear, protect against corrosion and remove chips and other fragments from the workpiece.

Nyco Merges Civilian, Military Lubes

Nyco, a European manufacturer of specialty lubricants and synthetic esters for aeronautics, defense and industry, has merged its commercial and military aviation activities within a common Aeronautics & Defense division. Guillaume Forestier, previously director of the civil aviation division, heads the new sector, which includes a program development unit, sales department and customer support team.

Slavneft Delays Start-Up

Slavneft, a joint venture between Gazprom Neft and Rosneft, delayed the start-up of its API Group III base oil plant under construction in Yaroslavl, Russia, from this summer to the first quarter of 2017. The 100,000 ton per year plant was previously expected to begin streaming by the end of 2016 at the latest. The joint ventures Yaroslavl site currently has a 250,000 t/y Group I base oil plant.

We expect the plants final start-up to be in 2017, Alexandr Trukhan, head of Gazpromneft-Lubricants, the Russian oil majors lube arm, said in an interview. We hoped to make it happen earlier, but due to technical reconfiguration of the project – such as changes in the base oil viscosities – the start date was pushed back. He added that the changes were made because of impacts on Russias lubricant market caused by the governments import substitution policy.

When import substitution became a priority, we realized what viscosities could be marketable in the Russian market, he said. The plant will produce 2-, 4-, 6- and 8-centiStoke base oils.

Metalube Expands

Metalube has taken possession of the industrial unit located adjacent to its current site, increasing the space available to the company by over 70 percent. Metalube now occupies a 1-hectare site, with a 2,500 square meter factory, warehousing and office space alongside a new laboratory. Two new blending tanks have also been purchased, enabling the company to keep up with increased demand.

Metalube manufactures a range of nonferrous drawing oils and maintenance lubricants as well as a variety of corrosion protection and forming oils. It has offices in China, India, Brazil and UAE.

BASF, Petronas Break Ground

BASF Petronas Chemicals Sdn Bhd held a ground-breaking ceremony for a highly reactive polyisobutene (HR-PIB) production plant in Gebeng, Kuantan, Malaysia, in March. The plant will be the first of its kind in Southeast Asia, with a total annual capacity of 50,000 metric tons of HR-PIB. It is expected to start production in the fourth quarter of 2017. HR-PIB is an intermediate product for manufacturing high-performance fuel and lubricant additives.

Russia May Sell Lube Divisions

The Russian government has sought to sell state-owned assets, including lubricant producers Rosneft and Bashneft, since last December due to continuing economic problems. During one of the biggest privatization programs since the 1990s, the Kremlin is desperate to raise money and fill budget gaps that have emerged because of the crash in oil prices and sanctions by Western countries. The state expects to realize around 800 billion rubles (U.S. $10.7 billion) from this sale of assets.

Some government officials are still mulling the number of shares the state wants to put on sale for each company and what companies could actually participate in the tender, though most prominent in the officials comments have been the Rosneft and Bashneft energy giants. Alexei Ulyukaev, economic development minister, said that the government wont hesitate to give up more than 25 percent of each company to enter into a strategic partnership with a serious buyer. Potential investors are expected to come predominantly from the pool of privately held Russian oil companies such as Lukoil, or the holdings and groups held by Russias business tycoons and billionaires. Foreign investors are also welcomed, the government indicated.

Another industry expert confirmed that the sale of both lubricant subsidiaries is very much related to their profitability. If the investors are assured that the lube divisions are profitable, they would continue to operate them; otherwise, the subdivisions might be closed, Tamara Kandelaki, head of InfoTek, a Moscow-based consultancy, said. At this phase, it is too early to say whether the potential investors will consider Rosnefts or Bashnefts lubricants business at all.

Tsvetkov said that if the privatization ends with the state retaining control of the oil majors, it wont close their lube operations and could continue the current modernization programs underway in some of the refineries. Bashnefts base oil production would definitely not be closed, as it has the only low-temperature dewaxing unit in the country, at its Ufa refinery, Tsvetkov said. Rosnefts Angarsk refinery and its base oil plant there are strategic assets – it is the only regional base oil and lubricants supplier in Eastern Siberia and in the countrys Far East.

Shell Lubricants Promotes Executives

Selda Gunsel was appointed general manager of products and quality for Shells lube supply chain; Andrew Hepher will take over her prior role of vice president, global commercial technology; Carol Chen will fill Hephers position of general manager for consumer lubricants marketing, moving from her post as marketing general manager for China and Hong Kong; Roger Moulding, who had been vice president for global key accounts and marketing, was named vice president of global lubricants marketing and lubricants sales for Europe, Middle East and Africa. Gunsel is based in Houston, the others in London.