Market Topics



Volvo/Mack Issues Spec

Tight on the heels of the new API CJ-4 engine oil category, which officially began licensing in October, Volvo/Mack Powertrain has issued a new heavy-duty engine oil specification, required for use in its U.S. 2007 diesel engines. The new specification goes by the name of Mack EO-O Premium Plus or Volvo Drain Specification VDS-4 (identical except for the engine make), and is already in use as factory fill for all Volvo and Mack Trucks. It also is required as service fill for the companys 2007 engines.

The new specification is based on the API CJ-4 category, but has more severe limits in the Mack T-12 and Cummins ISB engine sequence tests. It also requires passing an additional piston deposit test; this extra test is not in the CJ-4 battery.

This new engine oil is fully back-serviceable, says Volvo Technologys Bengt Otterholm. Extensive field tests showed improved performance in areas such as wear protection and soot handling. The field tests were so good that drain intervals for the 07 engines using the new oil have been extended to 31,000 miles, from a previous 25,000 miles, he reports.

Lubrizol Swallows Lockhart Products

Lubrizol Corp. last month purchased a broad line of additive products used in metalworking fluids from the privately held Lockhart Chemical Co., a longtime competitor based in Gibsonia, Pa. The products had annualized revenues of approximately $20 million last year, the Wickliffe, Ohio-based Lubrizol said.

Terms were not disclosed.

This acquisition is an excellent strategic fit for Lubrizol, stated Lubrizol Additives President Steve Kirk. It supports the growth of the Lubrizol Additives segments industrial additives business.

The acquisition includes all of Lockharts natural, synthetic and gelled sulfonates; the Locksol line of emulsifiers and emulsifier packages; the Lockguard line of corrosion inhibitors and rust preventives; lubricity agents; grease additives; esters; soaps, and more. For a period, Lockhart will continue making the additives at its Flint, Mich., plant and work with Lubrizol to see that the transition will be smooth for all customers. The manufacturing will then move to Lubrizols Painesville, Ohio, facility.

Thomas Gillespie Jr., chairman and CEO of Lockhart Chemical, said the two companies are very familiar with each other. Weve been direct competitors for a long time, he told Everybody knew everybody. Some of their key employees used to work for us.

SKF Enlarges its Maintenance Stable

SKF USA, based in Norristown, Pa., has acquired Preventive Maintenance Co. Inc., a leading predictive maintenance services company. PMCI has 70 employees and annual sales of approximately $10 million. It is headquartered in Elk Grove Village, Ill., and serves the pulp and paper, metals, food and automotive industries. The acquisition will strengthen SKFs own condition monitoring, maintenance and consulting services in those markets.

Midwest Beckons to Allegheny

Wilmerding, Pa.-based lubricants blender Allegheny Petroleum Products, in a move to grow its industrial lube sales in the Midwest, has purchased distributor Wilder Oil in Evansville, Ind. He was a distribution point for us, and he wanted to retire so we bought him out, said Allegheny Petroleum Vice President Jim Kudis.

Terms of the sale, which included Wilders 200,000-gallon distribution facility, were not disclosed. Kudis also said his company is evaluating whether to expand the Indiana facility to include manufacturing for the Midwest.

RhinoPak Sold

In January, six lubricant industry executives bought RhinoPak, a contract blender and packager in Highlands, Texas, from the John W. Mecom family. The company now operates as ZXP Technologies Ltd., with industry veteran Ed Davis as president and CEO. Davis spent 28 years with Pennzoil and then was with Warren Oil in Dunn, N.C. Serving as Senior Vice President and General Partner is Jayna Mull, who was with RhinoPak. Names of the other partners were not yet available, and terms of the sale were not disclosed.

ZXP offers a variety of blending, packaging and distribution services, and its facility has an annual capacity of 100 million gallons. It employs more than 300.

The Mecom family acquired RhinoPak in 2002, Davis said. With our manufacturing expertise, we believe we can reduce costs and make the company profitable, he added.

SK and Nippon Oil: Lube Allies

SK Corp. is forging a strategic alliance for lubricants with Nippon Oil Corp., Japans largest oil company. The partners will exchange base oil and coutilize lube blending facilities to build a stable and efficient worldwide supply system of lubricants, said Y.D. Chae, general manager for SKs lubricants overseas marketing team. SK will supply Group III base oil to NOC Japan [and its plants worldwide], and NOC will supply Group I base oil to SK Korea, he said. The plan is for NOC to toll blend in the United States and China for SK, too.

Though conditions and philosophies are still being worked out, Shiegetaka Toyono, president of Nippon Oil USA, said his company wants to receive as much base oil as possible from SK – and also hopes SK will utilize Nippons new blending plant in Childersburg, Ala., outside Birmingham. That plant began operating in September, and makes engine oils, automatic transmission fluids and shock absorber oils.

Degussa Sheds Antioxidants Line

Degussa GmbH, Dusseldorf, Germany, is selling its antioxidant activities to a subsidiary of the Starnberg holding company Arques Industries AG, for an undisclosed amount. Included are its Ionol, Ionox and Ralox brand antioxidants used in lubricants, and also in plastics, food, paints and other applications. The business generated sales of about Euro 60 million (U.S. $78 million) in 2005. The transaction is due to close in the first quarter.

Ruediger Jelitte, vice president of business development for Degussa subsidiary RohMax, emphasized that his company is core to Degussa and not involved in the divestment. The divestment does not have any effect on RohMax, he said.

Briefly Noted

Polartech, the global supplier of metalworking fluids and expertise to the lubricants industry, has extended its relationship with Italmatch Chemicals (formerly Akzo Nobel) for distribution of Ketjenlube polymer esters, used as lubricity additives in metalworking fluids. In addition to North America, where it has distributed the products since 2003, Polartech now will officially represent Ketjenlube in Asia and a number of Eastern European countries …

Lucas Oils first consumer engine oils, which debuted at Pep Boys stores recently, last month began selling at 730 NAPA Auto Parts stores as well. The companys Robert Patison said that both synthetic and semi-synthetic Lucas High Performance brand oils will be supplied, and are expected to retail for $6.99 to $7.49 a quart …

Eaton Corp. has again extended its contract with Houghton Fluidcare, inking another three-year agreement with the chemical management firm. Houghton Fluidcare will provide chemicals and fluids procurement and management services for selected Eaton plants in North America, Europe and China.

Jeanson Heads Chemical Club

Thomas Jeanson of Chevron Phillips Chemical has been elected president of the Chemical Club of Philadelphia, and James J. Juliano of Ineos Melamines was elected first vice president.

Other new officers for 2007 include Robert A. Schiesser of Helm U.S. (second vice president); Joseph D. Bardon of Bardon Co. (treasurer); E.W. Kaufmann Co.s James Goldsmith (recording secretary); and Karen Ensslen of Church & Dwight (corresponding secretary).

Faces in the News

John Robinson has been named vice president of business development at American Refining Group in Bradford, Pa. Robinson is responsible for new product and market developments, including specialty applications, biofuels, and forthcoming hydrotreated products that will launch after the refinerys new hydrotreater starts up in the fourth quarter. ARGs Paul Weinberg will take over many of

Robinsons day-to-day sales activities, until a permanent replacement is named.

Dover Corp. has named Mark E. Harr technical sales representative, responsible for metalworking accounts in the Ohio-based territory.

Chemical markets expert Adrian Brown has joined SSY Consultancy and Research, the New York and London based shipbroking venture, to help expand its chemical tankers business. The well-known analyst joins SSY after 20 years with ICIS, where he was instrumental in building the companys chemical industry data and marketing intelligence.

William A. Rohrer is now manager, corporate accounts, at Pilot Chemical Co., with responsibility for all corporate account activities in North America. Based in Cincinnati, Rohrer previously was with Cognis Corp. and Stepan Co.

Shirley Ennuso has joined Additives International as customer service manager. Prior to joining the Evanston, Ill.-based specialty chemical firm, she was with Comdisco and Crawford & Associates, and also held positions at Navistar and Xerox.

Oleochemicals distributor Acme-Hardesty has named Allen Dillon of Apple Valley, Calif., to be West Coast regional sales manager. Dillon has significant chemical sales experience, and has held positions with Chemia, Cognis distributor Wilchem, Chemtec and others.

Related Topics

Market Topics