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PBF Gets Keys to Paulsboro

PBF Holding on Dec. 22 completed its purchase of Valero Energys Paulsboro, N.J., refinery, including its 11,000 b/d API Group I base oil plant. Price paid was $707 million, including $340 million for the refinery and the rest for net working capital, inventories and other adjustments.

Yvonne Schappell, formerly with Valero, is now marketing manager, lubes, for Paulsboro Refining Co., as the refinery was renamed. She said that all of Valeros existing base oil contracts remain active under the new ownership. We are very much interested in continuing to grow our lube sales, she told Lube Report, adding that Paulsboro Refining will be growing its sales staff.

Slick Deal for Quaker Chemical

Conshohocken, Pa.- based Quaker Chemical acquired specialty grease manufacturer Summit Lubricants for $30 million on Dec. 31, gaining Summits commercial operations and two manufacturing plants in Batavia, N.Y. The purchase price approximates Summits anticipated 2011 net sales.

Summit, which sells grease directly and also toll-manufactures for third parties, will retain its name and operate as a stand-alone subsidiary. A current expansion under way at Summit will also be carried through, according to Joseph Berquist, vice president of Quaker Chemical.

Quaker manufactures metalworking, industrial and hydraulic fluids. Its grease products in the past were toll-blended by others, but this will allow it to make its own and even add to its portfolio, Berquist said. Ron Krol, head of Summit, added, Quaker brings more channels to market that we dont currently have. The two companies complement each other in terms of market, and have little overlap in their customer bases, he said.

Terresolve Finds Backer

RSC Bio Solutions has invested capital in and become a minority owner of Mentor, Ohio-based Terresolve, which produces biobased and biodegradable functional fluids. Terresolve officials said this should help make its EnviroLogic brand of industrial lubricants available to a wider audience. RSCs market connections will help open the retail channel to Terresolves products, and the cash infusion will be used to help accelerate his companys growth, said Terresolve CEO Mark Miller.

Headquartered in Charlotte, N.C., RSC Bio Solutions is an affiliate of Radiator Specialty Co., best known for its lubes and automotive chemicals such as Liquid Wrench and Gunk.

DuBois Pockets Perkins Products

DuBois Chemicals has acquired metalworking and industrial fluids manufacturer Perkins Products, for an undisclosed amount. Perkins Products will continue to operate under its own name, using its existing plant in Bedford, Ill., confirmed DuBois CEO Jeff Welsh. Brands such as Perlube and Perdraw will also continue.

DuBois makes Lubricoolant brand cutting fluids, Polydraw pressworking fluids, and other water-soluble fluids. It also makes mineral oil and synthetic based lubricants.

I fully anticipate that we will be able to share technology and hopefully be able to do things together that neither company could do by themselves, Welsh commented.

Sea-Land Sails for Europe

Sea-Land Chemical Europe, the new arm of Westlake, Ohio-based Sea-Land Chemical, will supply specialty chemicals to Europes lubricants, cleaning and coatings markets. Our initial intent is to work with partners over there, President Joe Clayton said. He explained that the U.K.-based subsidiary, like its North American parent, will develop a stocking distribution network, using contract warehouses. It plans to open multiple locations in the next three to five years in Europe.

Sea-Land Chemical Europe also has picked Robert Stubbs, formerly of additive supplier Polartech, to promote products, conduct market studies, and identify new sourcing opportunities from Europe and Asia.

We see Europe, as the U.S. is, coming out of a slowdown in business, Clayton added. There has also been a consolidation of suppliers over the last couple of years.

Merger for Spectrum, A/R

Spectrum Corp. and A/R Packaging have joined forces, through Spectrums acquisition of A/R. The two companies merged operations in December, and together will continue to operate all their current facilities in Tennessee and Wisconsin, the companies said.

Ed Callis, vice president at Spectrum, noted that the two companies provide custom blending and packaging for lubricants, chemical and care products, fuel additives, brake fluids, coolants and other fluids.

Briefly Noted

Shell recently broke ground for its largest grease manufacturing plant worldwide, at its lube manufacturing complex in Zuhai, Guangdong Province, China. With future expansion, the plant will be able to make up to 40,000 metric tons of grease per year…

Ergon Hygold naphthenic base oils are now being marketed throughout Germany, Austria and Switzerland by specialty chemical distributor KrahnChemie, part of the Hamburg-based Otto Krahn Group. The pale oils are supplied from Ergon Europes storage location in Antwerp…

Arch Chemicals has formed a new Indian subsidiary, Arch Protection Chemicals Pvt. Ltd. in Mumbai, to offer biocide products and services tailored for that markets customers and climate. Target markets include metalworking fluids, emulsions, coatings and others. Saravana Kumar serves as Archs India country manager.

Fuchs Boosts India Outlook

Fuchs Lubricants (India) plans to triple its size in India to Rs. 2 billion (U.S. $45 million) in the next two to three years, and as a first step is expanding its blending operations there. Phase one of a state-of-the-art plant in Ambernath, near Mumbai, has been completed, and further expansion will commence in 2011, reports parent company Fuchs Petrolub AG, of Mannheim, Germany.

We see a huge growth potential for Fuchs Lubricants in India, and as part of our expansion plan we have set up the Ambernath plant to cater to a wide range of sectors, said the German companys chairman, Stefan Fuchs. The plant will manufacture a wide range of products and market them under the brands Planto (rapidly biodegradable products) and Eco (industrial and metalworking fluids).

Fuchs will upgrade the facility into a regional hub for research and development, as well. According to the consultants Kline & Co., Indias finished lube demand in 2009 was an estimated 1.8 million metric tons, valued at nearly $2.8 billion.

Repsol Picks Asian Partner

Madrid, Spain-based oil company Repsol has selected the Malaysian conglomerate UMW Group to produce and distribute Repsol-brand lubricants in China, Malaysia, Singapore, Brunei, New Guinea and Myanmar. The five-year deal will augment Repsols existing presence in Indonesia, Japan, Philippines and Taiwan. UMW will distribute the lubes and produce them at its blend plants in Malaysia and China.

Automotive and motorcycle engine oils are key growth markets for Repsol, and the deal is projected to involve more than 20,000 tons of lubricants in its fifth year, which is more than 25 percent of current sales in its native Spain.

Faces in the News

Lubrication Technologies has appointed H.E. (Ernie) Henderson as its director of technology, responsible for formulation development, engine testing, quality control, fluid analysis and compliance management support. Formerly with Citgo, he has over 33 years of experience in R&D, supply chain, marketing, forecasting and technical support.

Shanshan Wang, who holds a Ph.D. in polymer engineering from the University of Akron, has joined lubricant additive supplier Functional Products, in Macedonia, Ohio. Formerly with GE Plastics, Wang has wide experience in polymer materials and has authored numerous papers, including one to be heard this month at the NLGI-India meeting.

Bruce Wise has joined Whitmore Group as director of railroad sales, where he will work with Bob Holland, railroad sales manager, to propel the lubricant companys growth in that market. Wise has over 20 years experience and also serves on the board of the Railway Engineering-Maintenance Suppliers Association.

Dan Heuser is now metalworking product manager at Wallover Oil Co., Strongsville, Ohio, providing technical support for sales staff and aid in formulating products for customer needs. He joined Wallover in 1998, and holds a chemistry degree from the University of Akron.

Don Deihs was promoted to president of Fitz Chem Corp., the Itasca, Ill., distributor of raw materials and specialty chemicals he joined in 2004. Deihs has served the company as vice president of operations and chief operating officer. Bob Becker, Fitz Chems founder, has taken the role of chairman.

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