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EU Truck Producers Fined 2.9 Billion

The European Commission has found that MAN, Volvo/Renault, Daimler, Iveco and DAF broke EU antitrust rules. These truck makers colluded for 14 years on truck pricing, passing on the costs of compliance with stricter emission rules. As a result, the Commission imposed a record fine of 2.9 billion.

MAN was not fined because it revealed the existence of the cartel to the Commission. All companies acknowledged their involvement and agreed to settle the case.

Commissioner for competition, Margrethe Vestager, said: In all, there are over 30 million trucks on European roads…. It is not acceptable that MAN, Volvo/Renault, Daimler, Iveco and DAF, which together account for around 9 out of every 10 medium and heavy trucks produced in Europe, were part of a cartel instead of competing with each other.

The Commissions investigation revealed that the companies had
coordinated prices for medium and heavy trucks in the European Economic Area, coordinated the timing for introducing emission technologies to comply with Euro III through Euro VI emissions standards and passed the costs for the emissions technologies on to customers.

The infringement covered the entire Economic Area and lasted from 1997 until 2011, when the Commission carried out unannounced inspections of the firms. Between 1997 and 2004, meetings were held at senior manager level, sometimes at the margins of trade fairs or other events. The meetings were complemented by phone conversations and electronic exchanges.

In setting the fines, the Commission said it took into account the respective companies sales of medium and heavy trucks, as well as the serious nature of the infringement, the high combined market share of the companies, the geographic scope and the duration of the cartel. The table lists the fines for each company.

Fuchs Buys Ultrachem

Fuchs Petrolub SE announced that it is acquiring Ultrachem Inc., based in New Castle, Delaware, United States. Ultrachem produces specialty synthetic lubricants for the compressor and industrial maintenance markets. The acquisition expands Fuchs Groups portfolio of industrial specialty lubricants in the United States.

Ultrachem employs 25 people and generated sales of 15 million (U.S. $16.75 million) in fiscal year 2015-2016, almost all of that in North America. The deal is expected to close by the fourth quarter of 2016.

Industrial oils specialties is a core focus product segment and has been an area of interest to us for quite some time, said Steve Puffpaff, CEO of Fuchs Lubricants Co. (USA). The acquisition … will significantly enlarge our existing business and will help to grow it using Fuchs know-how and marketplace presence.

Gazprom Acquires Rospolychem, Begins Omsk Upgrade

Gazprom Neft acquired Rospolychem Group, a Russian manufacturer of specialty oils such as aviation lubricants and rolling oils whose customers include the countrys military. Terms of the deal were not disclosed.

Gazpromneft Lubricants will now operate Nizhny Novgorod-based Rospolychem, a group of companies that produces lubricants such as engine oils, transmission oils and hydraulic fluids along with specialty chemicals such as extender oils, additives and plasticizers. The oil major plans to use its in-house base oils in the formulations of Rospolychems products.

Rospolychems facility has capacity to produce 5,000 metric tons per year of engine oils, hydraulic oils and gear oils for the aviation industry; refrigerator lubricants; compressor oils; cutting and coolant fluids; rust-preventing greases; hydraulic fluids for general industrial uses, and more.

Gazprom Neft also announced that it has started implementation of a deep refining complex at its Omsk Refinery. This initiative is part of the second phase of a major modernization program across the companys refining assets, with the aim of increasing refining depth and the yield of light petroleum products. Planned annual capacity of the complex is 2 million tons.

The complex will increase the yield of light petroleum products (Euro-5 aviation and diesel fuels) by 6 percent. It will also be the basis for producing high-performance lubricants from Group II and III base oils, increasing output to 250,000 t/y.

Gulf Plans Saudi Plant

Gulf Start Factory for Petroleum Industries is leasing a 15,700 square meter property in Saudi Arabias Industrial Valley and plans to build a lubricant blending plant later this year. Gulf Start General Manager Saleh Bashanfar said this decision is part of the companys expansion plan and that the lubricants will be sold in local export markets. Gulf Start will be able to reach a wider range of customers thanks to the strategic location of the Industrial Valley amid a comprehensive network of land and sea transport lines, he said.

Gulf Oil Marine Hosts Iranian Seminar

Gulf Oil Marine held a technical seminar in Teheran, Iran, along with its partner Ray Sun Oil Co., to explore the Marine Oil Industry in the absence of sanctions. The objective of the seminar was to increase the technical awareness of industry players in an environment where sanctions will not be a major obstacle to developing the marine oil business in Iran. In addition, discussions covered Emission Control Areas, restrictions on sulfur content in fuels, cylinder oils, Environmentally Acceptable Lubricants and marine oil quality measurements and techniques.

According to CEO Seyed Ali Shahmoradi, Ray Sun has worked with local shipping companies such as Islamic Republic of Iran Shipping Lines to supply their marine lube requirements for the past five years. The event provided a meeting place for major players, decision-makers and technical authorities in Irans marine oil industry

Fuchs Plans South Africa Grease Hub

Fuchs Petrolub plans to build a new grease plant in Johannesburg, South Africa, that will serve as the companys hub for grease manufacturing for the rest of Africa, a company official said. Fuchs has identified South Africa as a hub for the manufacture of grease from which it will be distributed throughout Africa and is investing in building a new state-of-the-art grease plant in South Africa, Paul Deppe, managing director of Fuchs Lubricants South Africa, said in an interview. The plant will have a capacity in excess of 4,000 tons per annum, and although designed to manufacture lithium, lithium complex and aluminum complex greases, it will have the flexibility to manufacture other types of grease if required.

Lithium hydroxide is now becoming a scarce commodity, Deppe said. The demand for lithium batteries has also increased, and this has resulted in global shortages. If this trend continues, then the demand and focus will shift to calcium and calcium sulfonate greases, which require a different manufacturing process.

In 2014, Fuchs acquired Lubritene and Lubrasa, sister specialty lubricant companies based in South Africa. Lubritene manufactures lubricants and greases for the mining, industrial, drilling and commercial industries; and Lubrasa manufactures food grade lubricants and greases.

Innospec to Buy Huntsmans Surfactants

Innospec Inc. has committed to purchasing Huntsman Corp.s European surfactants business. Under the terms of the U.S. $225 million transaction, Innospec would acquire Huntsmans manufacturing facilities in Saint Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain. Huntsman will retain its related accounts receivables and trade payables.

The deal is expected to close by the end of the fourth quarter. Upon completion of the deal, Huntsman will enter into supply and long-term tolling arrangements with Innospec to continue marketing certain products.

Vertex to Market Adnocs Group III

Vertex Energy announced that it will serve as marketer in the United States of API Group III base oils from Abu Dhabi National Oil Co.s new plant in the United Arab Emirates. Vertex is the agent for Netherlands-based Penthol C.V., which is Adnocs distributor, and will export the oils to the U.S.

According to Vertexs announcement, the first cargo of 75,000 barrels of base oil arrived in Braithwaite, Louisiana, at the end of July. Vertex said it has taken on responsibilities – in cooperation with Penthols U.S. subsidiary Penthol LLC – for marketing, sales and logistical duties in North America. The two companies will offer Group III base oils in 4-, 6- and 8-centiStoke viscosities under the Vertex-Penthol name.

King Names Scandinavian Distributor

Lehmann & Voss & Co. KG is the new distributor for King Industries in Scandinavia. Lehmann & Voss has distributed base oils and additives in Germany, Austria, Switzerland and the United Kingdom, and also provides technical services.

King Industries supplies a broad range of products for use in formulating high-performance industrial and automotive lubricants, greases, metalworking fluids and rust preventives. Its product lines includes rust and corrosion inhibitors, antioxidants, antiwear additives as well as synthetic base oil modifiers.

ACEA Reacts to Decarbonization Strategy

The European Automobile Manufacturers Association (ACEA) said it welcomes the initiative to explore how to further decarbonize transport in Europe, following the announcement by the European Commission of its strategy for low-emission mobility last week. ACEA Secretary General Erik Jonnaert said in a press release, The automobile industry is fully committed to continue reducing CO2 emissions across all business segments, from passenger cars to trucks. However, he said that as the strategy puts all the emphasis on road transport, ACEA calls for a more balanced approach, addressing all modes of transport – including air, maritime and rail.

Technology neutrality is key to supporting innovation and greater fuel efficiency, so ACEA welcomes the fact that this principle is enshrined in the Commissions communication, the association said. All vehicle manufacturers will continue investing in both internal combustion engines as well as the full range of alternative powertrains that meet the demands of both private and business customers, said Jonnaert. As the communication rightly points out, however, a wider roll-out of infrastructure for alternative fuel vehicles is needed to enable a stronger market uptake of zero- or low-emissions vehicles by 2030.

Kemat Issues Succession Plans

Kemat-Belgium Polybutenes nv/sa announced the retirement of Mike Mason from day-to-day operations. Mason, who founded the company in 1989, will remain on the Board of Directors. The Board named Simon Mason as his successor. He previously served as EMEA Managing Director of the Security Solutions division of Verizon, where he was responsible for leading the organizations security professionals and overall Go-to-Market strategy globally.

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