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Dover Buys Again

Additives supplier Dover Chemical Corp. last month bought the chlorinated paraffins business of Pioneer Companies Inc., a deal that gives Dover a virtual monopoly on chlorinated paraffin production in North America. Terms of the sale were not disclosed.

Pioneer, based in Houston, makes chlorinated paraffins at a plant in Cornwall, Ontario, Canada. The two companies indicated that the Cornwall plant will be closed and that Dover plans to supply its customers from existing facilities in Dover, Ohio, and Hammond, Ind. Pioneer also will supply chlorine to Dover.

Among other applications, chlorinated paraffins are used in cutting fluids to provide extreme pressure protection. Dover, a subsidiary of ICC Industries, was already the continents dominant producer, especially after the 2003 acquisition of its competitor, Keil Chemical, from Ferro Corp. At the time, observers said the deal gave Dover approximately 75 percent of North Americas chlorinated paraffins capacity.

Pioneer had little if any sales to the lubricants industry in 2003, but claimed it then made significant inroads into lubes. In addition, U.K.-based Ineos Chlor expanded its profile with European exports to the United States. Chemical manufacturer Ideas Inc., Lombard, Ill., also has the Ida-Klor line of chlorinated paraffins, which are custom-manufactured in North America.

Marathon, Ashland Untie

Marathon Oil Corp. and Ashland Inc. in mid-May came to an agreement with the U.S. Internal Revenue Service, clearing the way for Marathon to acquire Ashlands 38 percent interest in Marathon Ashland Petroleum LLC (MAP). The severing of their joint venture was to be completed by June 30, and gives Marathon sole ownership of MAP; its Catlettsburg, Ky., refinery and Group I base oil refinery; a maleic anhydride business; and 60 Valvoline Instant Oil Change retail outlets. Ashland gets an estimated $3.7 billion to $3.9 billion from the deal.

Noco Expands Distribution

Noco Energy Corp. has opened a 40,000-sq.ft. lubricants distribution center in Liverpool, N.Y. The facility, which replaces one of half that size in the same town, employs 19 people and has 44 storage tanks with total capacity of 220,000 gallons. Noco is a family-owned lubricants and fuels supplier headquartered in Tonawanda, N.Y., with four lubricants warehouses in the United States and two in Canada. It carries ExxonMobil, Citgo, Monroe, Petro-Canada, Jax and Houghton brand lubricants, as well as its own Noco brand.

Iowa Tax Break for Soy

On June 6, Gov. Tom Vilsack of Iowa signed into law a bill providing tax breaks to manufacturers that convert to soybean based metalworking fluids. The law offers an income tax credit of $2 per gallon to reimburse Iowa companies for costs of converting metalworking shops to soy fluids. The credit is based on the volume of fluid installed (up to 2,000 gallons) and can be claimed just once on costs incurred during the first 12 months of transition. The law expires at the end of 2006, and aims to help farmers by building industrial demand for vegetable oils.

This could be the little push that businesses need to make the switch, said Lou Honary, president and chief executive officer of Environmental Lubricants Manufacturing Inc., in Plainfield, Iowa, which makes lubricants and greases based on soybean oil. Despite the products high performance, he said, many end-users are put off by the cost of changing out old fluid, disposing of it and flushing equipment to convert to soy. This tax credit is aimed at overcoming that resistance, he said.

Honeywell Sells Wax Unit

The International Group Inc. has acquired Honeywells industrial wax business in the United States, the companies said last month. They did not disclose terms of the sale, which includes a refinery in Smethport, Pa., with capacity to make 70,000 metric tons of bauxite wax per year.

Wayne, Pa., based IGI already owns a refinery in Toronto – which it claims is the largest independent wax refinery and blending plant in North America – as well as terminals and blending facilities in Oshkosh, Wis., Baytown, Texas, and on the West Coast.

Honeywell will continue in the lubricants business through its line of Rheochem brand lubricants for the vinyl processing industry. Honeywell is based in Morris Township, N.J.

PetroCard Buys into Lubes

Fuels marketer PetroCard Systems announced last month that it has acquired Thunderbird Lubrications, one of the nations largest distributors of Pennzoil and Quaker State lubricants. Based in Spokane, Wash., Thunderbird was a division of Gull Industries. It supplies bulk motor oil to the installer market and packaged consumer motor oils and other automotive chemicals to retailers, plus sells fuels.

Terms of the transaction were not disclosed. PetroCard, which is headquartered in Kent, Wash., south of Seattle, said it was attracted by the opportunity to get into the lubes business while enlarging its fuels operation.

Falex Turns to Compass

Falex Corp., the Sugar Grove, Ill., supplier of tribology and petroleum testing equipment, has selected Compass Instruments Inc. as exclusive distributor for its products and services in North America. Compass improves our ability to deliver value to Falex customers by offering direct service, support, sales and marketing of our products, commented Les Heerdt, Falex chairman.

Falex makes more than 50 models of tribology test equipment, and says that like other niche marketers it has struggled to create enough mass to support a direct sales or service force. The deal with Compass will help it to extend its reach, tapping into Compass distribution center adjacent to Falex headquarters plus facilities in Spring, Texas.

Falex also named Andrew M. Faville, its chief operating officer, to be president and CEO. Faville joined Falex in 1982 as a sales engineer. He retains the title of COO, and says his goals include expanding the companys European presence.

The Envelope, Please …

ConocoPhillips, the fourth-largest lubricants supplier in the United States, brought home Ford Motor Co.s highest supplier honor, the Gold World Excellence Award for 2004. Of 52 cited suppliers, just 17 earned the Gold award. the only oil and lubricants company in the category…

Wal-Mart, the worlds largest retailer, has named Shell Lubricants one of its top International Suppliers of 2004. The retailer cited Shell for its excellent products, strong growth and close cooperation. Their relationship dates to the 1980s, when Wal-Mart began selling Pennzoil-Quaker State products. Today, Wal-Mart is one of Shells largest customers worldwide…

Houghton Fluidcare received Eaton Corp.s Engine Air Management Operations 2004 Supplier Award, recognizing it as one of Eatons top suppliers. Based in Valley Forge, Pa., Houghton manages industrial fluid usage in Eaton plants in 10 countries, including the six U.S. plants recognized by this award.

Faces in the News

Gerald Gerry Jackson has become general manager, base oils in Houston for Motiva Enterprises LLC, where hell manage both marketing and strategy for the company, which owns the worlds largest Group II refinery. His 26 years of experience in the lubricants business include managing the commercial and technical aspects of Pennzoil-Quaker States base oil business, prior to its acquisition by Shell. Jackson takes over from Brian Smith , who earlier was appointed vice president, supply, distribution and commercial marketing.

Craig H. Mott has joined Lambent Technologies Corp. as regional sales manager for the industrial market in the Northeast United States. Mott has over 20 years of sales and marketing experience, including with Cargill Industrial Oils & Lubricants.

Six Sigma expert Mike Lewis has been named North American sales manager for Angus Chemical Co., a subsidiary of Dow Chemical, and Dow Biocides, succeeding Greg Jorjorian who retired on May 31. Lewis joined Dow in 1990 and moved to Angus in 2001; he now holds sales manager responsibilities for the two businesses in addition to being North American distribution manager.

Chevron has tapped John W. Geyer as grease marketing manager for the North American region. Prior to joining Chevron a few years ago, Geyer was with Exxon Southwest Grease at its Bakerstown, Pa., plant. His promotion was effective May 1.

Joseph Purnhagen has been named North American marketing manager for Lubrizols metalworking additives business in Spartanburg, S.C. Hell develop strategies for product line management, prices and product distribution, new product introductions, and sales of existing products. Purnhagen joined the business in 1999, as a sales representative; prior to that he was with United Lubricants Corp. Lubrizol Metalworking Additives also named Trey Lominack as technical sales representative, handling accounts in the Southern and Western United States. He joined the business unit in 2002.

Oleochemical and industrial process chemical supplier Acme-Hardesty Co. has named Linda Meyer of Houston, Texas, as regional sales manager for Alabama, Arizona, Arkansas, California, Louisiana, Mississippi, New Mexico, Oklahoma, Oregon, Texas and Washington. She has 15 years of sales and marketing experience, including with Techmer PM and Southwest Chemical Services.

Christine Marshall and Paul Moxham have been hired as account managers for Petro-Canada Europe. Marshalls expertise is in the lubricants market in Scotland, and she will support Petro-Canada Lubricants sales there. Moxham, who has experience selling both industrial and automotive products, will serve customers in the southern U.K.

Daragh L. Porter has been named Ashland Inc. vice president, finance, and treasurer, adding responsibility for investor relations to her current duties as treasurer, a role she assumed in 2002. Also at Ashland, Michael J. Shannon has been promoted to executive vice president for the Chemical Sector global supply chain, effective August 1, covering worldwide purchasing, logistics and operations for Ashland Distribution, Ashland Specialty Chemical and Valvoline. Shannon joined the company in 1984.

Halocarbon Products Corp., the River Edge, N.J., based producer of specialty fluorochemicals, has promoted Peter Murin to chief executive officer. As the companys COO for 10 years, Murin oversaw the expansion of its manufacturing facility in North Augusta, S.C.

ASTM last month planned to honor Kishore Nadkarni of Millennium Analytics, East Brunswick, N.J., with an International Award of Merit and the title of ASTM Fellow. The award recognizes Nadkarnis years of service to Committee D02 on Petroleum Products & Lubricants and particularly to the groups interlaboratory cross-check program.

Fast-lube Group Picks Leaders

At its recent annual meeting, the Dallas-based Automotive Oil Change Association elected Sue Ackley of Xpress Lube, St. Louis, to a second term as its president, and named L. Ward Huntley to its board of directors. Huntley is president of South Lubes Inc., Orange Park, Fla., which operates 60 Jiffy Lube locations. Also, AOCAs associate members elected Kirk Gustie of Service Champ to serve as their representative to the board. Dave Jensen, a Penn 10 operator in Waterloo, Ontario, was re-elected vice president and Steve Allison, who runs six Shell Rapid Lubes in Myrtle Beach, S.C., was elected secretary/treasurer.

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