BASFs new plant adds to BASFs established PAG capacity at its North American site in Geismar, Louisiana. The company said it also fits its verbund strategy of manufacturing efficiently through vertical integration and by making use of by-products. For example, the Ludwigshafen PAGs are made using ethylene and propylene oxides that are produced at the same site.

PAG based lubricants are a significant pillar of the overall synthetic lubricant market and are strategic for BASFs fuel and lubricant solutions business, said Martin Widmann, BASF SEs senior vice president for fuel and lubricant solutions. The new PAG plant in Ludwigshafen, Germany, strengthens our position in existing markets and supports our ambition to build a leading lubricant solution provider.

Lukoil Slumped in 2015

Lukoils output of base oils slumped 17 percent in 2015, and its sales of finished lubricants dipped 3 percent, according to its annual report. But the company claimed to have made progress on its strategy of focusing on higher-margin products instead of overall volumes.

Lukoil kept working on increasing the share of high value-added products and streamlining low-margin segments, the company said in its 2015 report. Last year, we [increased] the sales of high-margin lubricants produced in Russia by 28 percent. In 2015, the total output of these products across the companys domestic and overseas operations rose by 17 percent.

The Moscow-based company did not disclose the financial performance of its lubricant business. Despite the drop in volumes, it claimed to still be the largest combined supplier of base oils and finished lubes to the Russian market, but it did not disclose its rank or market share for those categories individually.

Lukoil produced 812,000 metric tons of base oils in 2015, down from 973,000 tons in 2014. Its finished lube production slid from 121,000 tons in 2014 to 117,000 tons last year. The company said it remains particularly focused on developing its product mix in line with market demand. In 2015, it developed 52 new types of lubricants and reformulated 57 products, as its portfolio of finished lubes swelled to 400 items.

The companys 2015 results include the launch of its Genesis-branded products in the Russian market and the completion of a reservoir park on the Danube River in Vienna, Austria, which it considers to be its new European hub for marketing base oils produced at its Volgograd refinery.

Lukoils share of the global marine lubricants market grew from 5 percent in 2014 to 9.5 percent in 2015. [Lukoil] made great breakthroughs in the maritime shipping industry, capturing a significant market share of the global marine lubes market, the company said. Thanks to our innovative approach, we developed a new mix of biodegradable synthetic lubricants meeting the strictest requirements and up-to-date safety standards, and iCOlube, an intelligent cylinder oil lubrication system.

Company priorities in 2016 include continued growth of sales for value-added products and streamlining low-margin segments. It also intends to take further advantage of the state-sponsored import substitution program that encourages domestic companies to use domestic suppliers and to expand geographically. It aims to add about 20 products to its finished lubricants portfolio.

Rock Breaks New Ground

Rock Oil has begun a major redevelopment of the companys manufacturing site in Warrington, Cheshire. The first phase of the project is a new 10,000 square foot Research & Development center that will house laboratories and staff across technical, sales, marketing and senior management. The current laboratory runs 20,000 quality control tests a year and works with major OEMs, having factory approvals from Volkswagen and Mercedes Benz.

Rock Oil is one of the few remaining lubricant blenders in the U.K.
and has worked with multiple British and world champions across various motorsport disciplines. It is currently the official lubricant partner of the British Superbike Series, the biggest domestic motorcycle race series in the world.

Hazard Pictogram Guide Issued

The warning signs for products containing hazardous chemicals are changing. As of 1 June 2017, all products containing the old warning signs must be removed from shops. These range from everyday cleaning products to paints, coatings and industrial chemicals. The new quick guide explains what the new warning signs mean, what precautions should be taken and in what types of products they are most commonly found. The guide is available in 23 EU languages at echa.europa.eu/documents/10162/22379905/clp_short_guide_en.pdf.

ECHA Seeks Input on Formaldehyde Releasers

The European Commission has requested that ECHA investigate formaldehyde releasers and their uses in the EU. The aim of this work is to support the European Commission in deciding whether to have ECHA prepare an Annex XV dossier for the restriction of formaldehyde and whether formaldehyde releasers should be part of this restriction dossier. Interested parties should submit information related to formaldehyde releasers by 4 October 2016.

Metalube Adds Bulk Storage

Metalube has taken delivery of two 45,000-liter bulk storage tanks to help meet increased demand for its products. Douglas Hunt, commercial directors said, We have recently expanded our manufacturing site by 70 percent, so the flexibility these new tanks give us is very helpful during this time of growth. We are also currently adding to the number of blending tanks in the factory to help meet customer demand. The company manufactures a range of nonferrous drawing oils and maintenance lubricants as well as a variety of corrosion protection and forming oils.

Oronite Names Nigerian Distributor

Chevron Oronite has appointed ABD Energy Solutions Ltd. as their distributor in Nigeria. The agreement involves the sale of Oloa additives and Paratone viscosity modifiers, as well as providing technical and laboratory support to customers. ABD operates a warehouse in Lagos that will store some Oronite products.

ABD Energy Solutions Ltd.s vast experience in the refining and petrochemical business gives them a good knowledge of the lubricant, base oil and additives segments, and makes them a welcome addition to the Oronite distributor network, said Alain Robert, Oronites regional sales manager, Europe-Middle East-Africa. This should help Oronite strengthen our presence in the region and also enhance our level of service.

Azerbaijan Mulls Group II/III Project

An Azeri state investment promotion fund is pitching the idea of a small API Group II and III base oil plant to potential investors, according to the funds 2016 catalog of investment projects in Azerbaijan. The Azerbaijan Export and Investment Promotion Foundation said a plant with a capacity of 80,000 metric tons per year could be built for U.S. $350 million. Azpromo suggested the project be financed by private and state entities and proposed a site in the Sumqayit Chemical Industrial Park, near the Caspian Sea outside of Baku.

Azpromo, a joint public-private-initiative established by the Ministry of Economy and Industry of Azerbaijan, has proposed the project as a gas-to-liquids facility that would make fuels as well as base oils. The government said the project could be constructed in two years and that the investment could be recouped in eight years. The projects technical documentation and economic feasibility are currently under review.

Power Reforms Energize Apar

Indias largest transformer oil manufacturer, Apar Industries, expects the implementation of power policy reforms to significantly boost energy consumption, and thus demand for its products, in coming years. A power distribution reform package in India allows state governments to opt into assuming 75 percent of the debt held by electricity distribution companies – which are owned by the state – by the end of fiscal year 2017. Apar said the plan will result in a big jump in demand for products in two of its segments – conductor and transformer oils – especially in 2018.

The scheme, known as Modi Ujwal Discom Assurance Yojana (Uday),
lets states that opt in repay lenders by selling bonds. Apar pointed out during a conference call about its 2015-2016 fiscal year that around a dozen states had so far agreed to the Uday program, and enrollment was extended to March 2017 to allow more states to do the same. The Mumbai-based firm said it has already seen big spikes in power companies projected energy output and the number of tenders for power supply being floated in the market.

Apar said that despite achieving its highest-ever volumes for specialty oils and automotive lubricants during 2015-2016, it still faced many challenges resulting in its transformer oils revenue decreasing 14 percent year over year to Rs 437 crore. There is a lot of pent-up demand that is likely to come through the implementation of these schemes, and we are already starting to see some movement on the ground in terms of tenders actually being floated, said Apar Chairman, Narendra Desai.

Apar also noted that it has been growing its ability to serve high-efficiency conductors and high-voltage, direct current electric power transmission systems – being the only Indian transformer oil supplier approved to supply the latter. Although it still expects its main growth in fluid sales to come from new conductors and transformers, Apar also forecasted a spike in demand for replacement oils, which currently are 6 percent of pre-installed volumes.

Oelheld Breaks Ground

Oelheld broke ground on a facility in West Dundee, Illinois, United States. The 24,000 square foot facility will house increased production capacity, increased storage, a new R&D laboratory and a tanker unloading station. Targeted move-in date is December 2016.

Houghton Acquires Wallover

Houghton International Inc. announced that it has acquired Wallover Enterprises, a North American metalworking fluid and industrial lubricant manufacturer headquartered in Strongsville, Ohio. Terms of the transaction were not disclosed.

Wallover produces a diverse portfolio of fluid products for industrial end markets throughout the United States and Canada and provides technical and applications expertise in electrical discharge machining fluids and stainless steel cold rolling oils. This acquisition enables Houghton to expand and improve its metalworking solutions capability for its customers, said Houghton Chief Executive Officer Mike Shannon. We welcome the Wallover employees to the Houghton family and look forward to combining our industry experience and knowledge.

KTB Joins KPI

KPI Bridge Oil, a global trader and broker in marine fuels, marine lubricants and risk management products, announced that KTB has joined the KPI Bridge Oil Group. The merger is part of the companys growth strategy for 2016 and will complement the groups Singapore presence.

Carsten Ladekjaer, CEO of KPI Bridge Oil Group, commented, This merger will further strengthen the KPI Bridge Oil brand in a consolidating market, and it will position us even stronger to meet todays demands of the highest level of service from financially secure and safe counterparts.

Evonik Appoints Industrial Lubes Marketing Manager

Evoniks Oil Additives business line appointed Mukund Bhure as Global Industrial Lubricants Marketing Manager. In this role, he will be responsible for leadership of the wind turbine and general industrial gear oils business globally.

Bhure joined Evoniks Oil Additives business line in 2010 from Chevron Lubricants, where he was responsible for the sale of industrial lubricants and Chevrons OEM business in India. He is a Science Graduate with a post-graduate degree in Marketing Management from Pune University. He brings to his new role more than 24 years of sales and marketing experience in lubricants and specialty chemicals.ο