To lubricate the cars engine, Shell formulated a blend of Shell Helix Ultra PurePlus Technology oil, with a viscosity grade of SAE 0W-12. We are pushing the boundaries of fuel economy performance beyond existing motor oil products, the company said. The prototype motor oil helped enhance fuel economy by 5 percent [in New European Driving Cycle] and up to 7 percent in cold-start city driving.

Shell added that the oil is a considerable improvement over currently available fuel economy motor oils and highlights the value of codesigning the engine and lubricants. The latest SAE 0W-20 oils on the market would typically deliver around 1.4 to 3 percent improvement. This motor oil, in tandem with a Shell Spirax transmission fluid, reduced the cars CO₂ emissions by 5 percent, a huge improvement over current Shell Helix road-going motor oils, Shell said.

Hill to Construct Group II/III
Plant in 2017

Kazakh lube maker Hill Corp.s base oil production project has moved forward after a previous unsuccessful bid to find a contractor. In 2012, Hill, in a partnership with state energy giant Kazmunaygas, announced a tender for development of an API Group II and III base oil plant in Shymkent, southern Kazakhstan. Construction was scheduled to start by the beginning of 2013, according to a company official.

The 2012 tender was unsuccessful, and the company recently announced it is seeking a new engineering, procurement and construction partner. The project is expected to have capacity to process 500,000 tons per year of distillate fuel oil and to produce about 250,000 tons of Group I, II and III base oils annually, according to a company letter of intent.

The plant will use vacuum distillation and hydrotreating technology licensed from Chevron Lummus Global. It is expected to produce around 40,000 tons of Group I base oils, while the rest will be Group II and III, according to Nurshat Maratov, the chief of the companys marketing. The base oil plant will primarily supply our blending production, and the rest of the base oils will be exported to China, Iran and Russia.

Gulf Oil Enters Poland

Gulf Oil International and Boss Oil Ltd. started a lubricant distribution operation in Poland through Gulf Polska, a new joint venture. Gulf Polska will take over the operations of Oil Trading Poland, currently a licensed distributor for Gulf lubricants in the country, and will aim to expand the old distributors operations, the companys director, Rob van den Bosch, said in an interview.

First, we will act as an importer and deliver through a network of distributors in Poland, he said. We also plan to develop a chain of Gulf fuel stations in the country. It will help us to further increase the brand awareness in Poland.

The company is not planning a lubricant production facility in Poland, Bosch said. At this point, there is no plan to set up a blender. All the products we sell in Poland are now produced at the Q8 plant in Antwerp, Belgium.

Bosch said the company expects to deliver to Polands retail chains by the end of this year. However, we will not deliver where there is an official Gulf distributor in the neighboring countries, he said.

Exol Boosts Manufacturing

United Kingdom-based Exol Lubricants will purchase packaging equipment for its Wednesbury, West Midlands facility, to meet increasing demand for the companys products. This year, the independent lubricant manufacturer will add two Strong Arm filling machines with capacity to fill packages of 20, 25, 60, 205, and 1,000 liters. This investment will increase capacity and flexibility in regards to production, making the entire process more efficient, the company stated in a press release.

Exol will also invest in equipment for its small package production area, including an additional air receiver and a box handling system, and the installation of more telemetric gauges to existing storage tanks. Increased demand for Exol products has brought about such extensive investment in 2016, Steve Dunn, sales director for Exol Lubricants, said in an interview. Availability will increase further, and the expansion of our small pack filling line means we are able to increase production capacity in line with customer demand.

Petronas Signs Iranian Group III Distributor

Petronas has assigned Afzoon Ravan Group to distribute its API Group III base oil in Iran. Afzoon Ravan has distributed base oil and additives since 1997 and serves more than 300 customers. Irans base oil market is dominated by Group I, which does not meet the needs of the local vehicle industry that is trying to keep pace with new API guidelines for synthetic and semisynthetic engine oils.

Rhein Chemie Expands Industrial Business

Lanxess has expanded its capacities for light-colored sulfur carriers at its sites in Mannheim, Germany, and Kallo, near Antwerp, Belgium. This step strengthens the position of the companys Rhein Chemie Additives business unit in the industrial lubricant additives market. Light-colored sulfur carriers are used as additives in formulating high-performance metalworking fluids and gear oils that ensure good lubrication between metal surfaces at very high pressures.

Martin Swe, head of the lubricant additives business line, said, We have expanded the capacity of our production plant for light-colored sulfur carriers at our Mannheim site by about 20 percent. The investment was completed in late 2015 and totaled 1.5 million. Production capacity in Kallo was increased by a comparable amount by optimizing processes. The plant in Mannheim was designed for future expansion so that we are prepared for any necessary increases, said Swe.

Tide Water Buys U.K. Supplier

Indias Tide Water Oil agreed to a 9.59 million (U.S. $13.8 million) acquisition of Price Thomas Holdings Ltd., which owns United Kingdom-based manufacturer of lubricants and care car products Granville Oil & Chemicals. The acquisition includes Granvilles lubricants blending plant in Goldthorpe, Rotherham. Having a manufacturing facility in Europe will help improve Tide Waters sales margins in the European market, the company noted.

Price Thomas Holdings was incorporated in 1998. Apart from its primary business in the U.K., the company exports its products to Ireland, Sweden and Bulgaria.

Tide Water Oil has expanded its international presence in recent years, setting up offices in Germany, the Netherlands, Canada and the United Arab Emirates. It also formed a subsidiary to serve as its marketing licensee in North America and South America, and it signed licensing agreements to sell its Veedol line in Bangladesh, Europe, North America, Latin America and the Middle East through third-party manufacturing.

Clariant Ups Phosphate Esters Capacity

Clariant has added phosphate ester capacity at its site in Gendorf, Germany. The company did not disclose the investment cost or the size of the capacity increase.

Phosphate esters are used as extreme pressure and antiwear additives for metalworking fluids such as rolling oils. They are used in neat and semisynthetic metalworking fluids, as well as emulsions. Phosphate esters are also used as base stocks in fire-resistant hydraulic fluids for applications such as power plants, factories, marine vessels, mines and aircraft.

Gazpromneft Leads in Marine Lubes

Based on 2015 sales volumes, Gazpromneft Lubricants, a subsidiary of Gazprom Neft, has become Russias leading supplier of marine lubricants. Sales increased to 8,000 tons in 2015 from 2,500 tons in 2014, representing a 26 percent market share.

The marine oils business is growing in line with the companys long-term development strategy. We are increasing production capacity, implementing new technologies and obtaining official approvals and recommendations from major equipment manufacturers, said the companys CEO, Alexander Trukhan.

Gazpromneft has signed supply contracts with major marine oil consumers such as Sovcomflot and Norilsk Nickel, as well as major shipping companies, including the Far East Shipping Co., FSUE Rosmorport and CJSC Rosnefteflot.

Cepsa Inaugurates Automated Warehouse

Cepsa has opened a new lubricants warehouse in San Roque, Spain, that the company says is fully automated and equipped with the latest technology. The warehouse, located near the Gibraltar-San Roque refinery, is integrated into the production process from manufacture to final distribution.

Cepsas Lubricants Director said that the 14 million investment is part of the companys investment in the future of its industrial plants that are the backbone for its distribution business both on the Iberian Peninsula and in international markets. The center occupies 4,590 square meters.

Cepsa offers a portfolio of lubricants, base oils and paraffins sold in 80 countries. At present, the company sells more than 235,000 tons per year of lubricants, refrigerants, base oils and paraffins, making it a market leader at home, while also exporting products to Europe and emerging markets such as Latin America and Asia.

IOM Expands Oil Survey to South Africa

The Institute of Materials Inc. has expanded its annual automotive engine oil market survey to cover South Africa. In the second year of collecting and testing oils available in the retail market of South Africa, there is key industry test data available on a variety of engine oils marketed in the region. This technical data can be used to assess and monitor the quality of engine oils on the market; compare and contrast physical, chemical and performance-associated characteristics of oils within and between geographic regions; and improve decisions about marketing and competitive intelligence, said Tina Dasbach, Operations Manager of IOM.

In its annual survey, IOM collects approximately 650 engine oils from retail markets around the world, performs over 30 industry-standard bench tests on each and compiles this technical data into a searchable database. For more information on the IOM Database, visit www.InstituteOfMaterials.com.

Angus Opens Paris Application Center

Angus Chemical Co. has opened a Customer Application Center in Paris. The center houses multifunctional laboratories and a training facility, providing a location for regional customers to collaborate with Angus technical and regulatory experts. The Paris facility joins other centers located in the United States, Brazil, China and Singapore.

FinCo Acquires Gulf Business

FinCo closed a transaction with Enviem to acquire the Gulf wholesale activities in the Netherlands, consisting of direct sales, commercial fuels, bunkering and lubricants. The Gulf terminals, barges, trucks and associated employees are part of the transaction. FinCo will market and distribute Gulf Oil International lubricants in the Netherlands and Germany, and will develop a new marketing campaign.

Krapfl Named Evonik CR Director

Evoniks Oil Additives business announced that Thilo Krapfl has assumed the role of Customer Relations Director – Europe, Middle East and Africa. From his base in Darmstadt, Germany, Krapfl will lead direct sales activities in the region, as well as technical service and OEM relations. Krapfl joined Evonik in 2004 and has held various positions, including technical service manager in Darmstadt, Singapore plant manager and global sales process manager.