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Safety-Kleen Eyes Rerefinery #3

Safety-Kleen Systems announced plans to move forward with preliminary engineering for its third North American used oil rerefinery, which could expand its total processing capacity by 45 million gallons. The company, which already has plants in East Chicago, Ind., and Breslau, Ontario, is evaluating several potential sites in the Southeast and Gulf Coast regions, according to Dave Sprinkle, executive vice president, oil rerefining.

We have several locations under evaluation, each of which makes good sense in terms of used oil availability, existing infrastructure and logistics, Sprinkle said. Now we have to determine which site makes the most economic sense. Safety-Kleen CEO and President Robert Craycraft added, Acceptance of our rerefined products, particularly EcoPower [engine oil], is well established and growing among corporate fleets, consumers and government agencies, and we want to extend our leadership in this important market.

Scot Exec Charged over Phony Vents

Scot Lubricants President Timothy D. Fritz faces criminal charges over an alleged attempt to sidestep Pennsylvania state regulations by installing fake vents on tanks. The Pennsylvania Attorney General alleges Fritz directed employees in 2007 to fabricate phony modifications to oil storage and blending tanks at its Allentown location to avoid complying with state Department of Environmental Protection (DEP) venting regulations. Photographs of the non-functioning vents then were submitted to the DEP in January 2008 as proof of compliance, the charges state.

The investigation began in August 2010, when a former Scot employee advised a DEP official that some vents installed on the companys storage tanks were dummies. Subsequently, the Pennsylvania Attorney Generals environmental crimes section interviewed two company employees who admitted to being directed to construct the false vents on several tanks at the companys East Tremont Street facility. The fakes were simply pipe elbows and bolts welded to metal plates and wedged at the top of the tanks, the Attorney Generals office said.

Fritz was arraigned on June 29 and released on $75,000 unsecured bail. A preliminary hearing on Sept. 1 will determine whether the state has presented probable cause that a crime has been committed.

Lonza Acquires Arch Chemicals

Lonza has agreed to acquire biocides maker Arch Chemicals, in a deal valued at $1.4 billion. Arch had sales of about $1.4 billion in 2010, about 85 percent of which were biocides. The company employs about 3,000 people at 23 manufacturing and research facilities worldwide. The merged business will have a broad line-up of active ingredients, Lonza says, and a complementary geographical footprint. The acquisition is also expected to strengthen Lonzas position in the high-growth economies of Brazil, China, India and South Africa.

Grease Production Climbs 13%

NLGIs Grease Production Survey Report shows global lubricating grease production surpassed 2.3 billion pounds in 2010, exceeding 2009 production by 13 percent. China reported making 897 million pounds of grease in 2010, or 39 percent of global output, making it the leader in grease manufacturing. Second place goes to North Americas 455 million pounds.

The report also shows that European production softened somewhat and the rest of the worlds was essentially flat. Lithium and lithium complex greases continue to dominate the worlds markets, comprising three-quarters of total reported production. Calcium thickened greases are the second most popular, at 10 percent. The fastest growth for thickener types was polyurea, up 32 percent.

For the first time, the survey also asked manufacturers what types of base oils they use. Globally, conventional mineral oil accounted for 93 percent while synthetics and semi-synthetics each claimed about 3 percent. Less than 1 percent was biobased. To order a copy of the full report, visit NLGIs website, www.nlgi.org.

Petronas Prods Base Oil Output

Petronas Base Oil, an arm of Malaysias national oil company, said it is converting more of its Melaka refinerys fuels into base oils for the process oil market. When completed, the changes will result in a total daily base oil output of 10,000 barrels, up from a current 6,500 b/d of API Group II/III. However, most of the added production has a viscosity of about 2 centiStoke – too light for lubricants blending but useful in process oil applications.

Wed love to build another refinery at Melaka but that wont be likely any time soon, said CEO Joe Rousmaniere. So what we are doing is finding other ways to create valuable base oils, in addition to those that we are already making. Rousmaniere stated that Petronas continues to pursue development of new products, including biobased base oils.

Mixer Maker Sees Increased Demand

Ross Mixing has completed a 12,000 sq.ft. plant expansion in Port St. Lucie, Fla., one of its five U.S. manufacturing locations. The Hauppauge, N.Y., company also increased its workforce there by 25 percent to meet demand for quick delivery of mixing, blending, drying and dispersion equipment.

The Florida facility builds a wide range of laboratory and production scale models. It also manages the companys trial/rental program, servicing and stocking new and reconditioned equipment.

Fuchs to Build in Russia

Fuchs Petrolub will build a 20 million (U.S. $29 million) blending plant in Kaluga, Russia, to provide factory-fill lubricants to OEMs in the region. With a planned capacity of 40,000 metric tons per year, the facility will inject Fuchs into one of Russias largest automobile manufacturing clusters, home to several automakers and component suppliers, and will be located in the Rosva industrial park, southwest of Kaluga.

Expected to go online by fall 2012, the Kaluga plant will produce a wide range of finished products such as car and tractor engine lubes, transmission and compressor oils, as well as refrigeration, hydraulic and cooling fluids. It will have production and filling facilities, a laboratory, a tank farm and a warehouse for finished products. This is Fuchs second plant in Russia; the first makes metalworking fluids in Yaroslavl.

NAL Expands, Moves

North American Lubricants Co. is enjoying a burst of growth, says its president, Andrew Bornstein. The company has moved to a larger headquarters in Scottsdale, Ariz., expanded its staff, and were adding more distributors, too, Bornstein told LubesnGreases. He says the growth was spurred by its business model, which focuses on supplying oils to quick-lubes and other installers, and on larger sales of its Pure Green rerefined motor oil, which has a national contract to supply the U.S. Postal Service.

NALs new hires include Steve Subick to manage the jobbers wholesale division, and national account representatives Matt Oldenberg, Marcus Foster and Shelia Bennatt, in the Central, Texas and West Coast regions, respective ly. NAL was named as a preferred vendor for the State of Texas, and Foster will service that account as well.

PQIA Adds Expert Panel

The quality monitoring organization Petroleum Quality Institute of America has formed an advisory board consisting of nine well-known lubricant industry professionals, to advise on its testing and reporting of lubricants in the marketplace. PQIAs president is Tom Glenn, publisher of Jobbers World newsletter and head of the research firm Petroleum Trends International. Glenn also writes a monthly column for LubesnGreases, which has no business interest in PQIA or his other ventures.

Advising PQIA are Ken Kalisky of Infineum; Steve Milam of Lubricating Specialties Co.; Kimball Morris, Pinnacle Oil; Steve Mulvaney, Chevron Products; Doug Roberts, the Association of Independent Oil Distributors/ServicePro; Thomas Schaefer, Hatco (retired); Robert Schlott, Warren Distribution; Mayur Shah, Lubrizol; and Dewey Szemenyei, Afton Chemical.

PQIA anticipates adding other industry experts to its advisory board this year as well.

CDF Launches European Division

Packaging supplier CDF Corp. has purchased the Swiss-based company Flexipack SA, and is using it to launch CDF Europe and bring its bag-in-box Cheertainer to the continent. Laura Beechwood, owner and former chief operating officer of CDF, was named managing director for the new enterprise. Michael Watson, formerly of Flexipack, has joined CDF Europe as director of sales, and Marco Dariol is operations and technical director.

At its Plymouth, Mass., facility, CDF makes thermoformed and heat-sealed flexible packaging, including drum liners and box liners. The Cheertainer is a U.N. certified package, with a multiply bag that can be used for international transport of certain hazardous goods.

Briefly Noted

Quaker Chemical Corp. last month acquired the remaining 60 percent ownership interest in its Mexican affiliate, Tecni-Quimia Mexicana, for $10.5 million cash now and an additional $2 million due in July 2012, subject to certain conditions. The two companies had been j.v. partners for more than 40 years.

Independent refiners Holly Corp. and Frontier Oil completed their merger July 1, in an all-stock deal that formed HollyFrontier Corp. Their combined assets include a 9,500 barrel per day API Group I refinery in Tulsa, Okla.

Universal Environmental Services has closed on up to $52 million in financing for engineering, construction and commissioning of a rerefinery in Peachtree City, Ga., slated to have up to 30 million gallons of annual processing capacity and to be complete by 2013s first quarter. Earlier this year, Germanys Avista Oil AG acquired a 50 percent stake in UES.

Ford Motor Co. in June said it is tripling production capacity of its electrified vehicle lineup through 2013, including five electrified vehicles planned for North America by 2012. Ford currently sells approximately 35,000 electrified vehicles a year, and says its electrified vehicle production capacity will top 100,000 units a year by 2013.

Faces in the News

Curtis C. Knapp was named chief marketing officer and senior vice president of Safety-Kleen Systems. He will lead the development of all marketing, corporate image and brand initiatives for its oil rerefining, parts cleaning and environmental solutions markets. Prior to joining Safety-Kleen in 2008, Knapp held posts at Sunoco, Warren Distribution, Castrol North America, Waste Management, and The Marketing Arm agency.

Japans Emperor Akihito has conferred the Order of the Rising Sun, Gold Rays with Neck Ribbon, on Prof. H Peter Jost for his services to Japans science, industry and technology. Jost is president of the U.K.-based International Tribology Council.

Dow Performance Materials, which includes Angus Chemical and Acima Specialty Chemicals, named Carlos Silva Lopes as strategic marketing director. He will lead all global marketing activities for the business diverse markets, including metalworking fluids. Lopes joined Dow in 1990.

Walsh & Associates has named Edgar Straub sales representative for the Southwest region. With degrees in chemical engineering and business from the Tecnologico de Monterrey, he brings over 20 years of chemical industry experience to the chemical distributor.

Deacom, which specializes in enterprise resource planning software for batch manufacturers, promoted Amanda Mackendanz to vice president of sales. She joined Wayne, Pa.-based Deacom in June 2010.

Specialty chemical marketer Lintech International has hired Rick Adams in Houston, where he will be focused on the lubricants, metalworking and oilfield industries of south Texas and Louisiana.

Archway Sales has added Marc Yurco as technical sales representative for the Midwest region. Based in Plainfield, Ill., he joined Archway from Brenntag Great Lakes.

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