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U.S. demand for lube additives will grow 4.3 percent a year to reach nearly $3.9 billion in value by 2017, a new study forecasts. The industry will see a recovery in volume demand combined with a continued shift to new, high performance products, according to Lubricant Additives, a new study from market research firm Freedonia Group.

While demand from automotive applications is expected to rise, advances will be restrained due to weak growth in vehicle-miles traveled, lengthening service intervals and little room to further increase additive concentrations, the Cleveland company observed. This will have the greatest impact on deposit control additives – dispersants and detergents – which are a major component of engine oils and account for the largest share of total lubricant additive demand. These additives will grow at a below-average rate, while friction modifiers and antioxidants will see the fastest growth overall.

Freedonia analyst Jason Carnovale said the largest factor impacting additives will be development of the ILSAC GF-6 and American Petroleum Institute PC-11 engine oil standards, both slated for a 2016 introduction. We expect each of these to require product innovation from additive companies and in some cases rising treat rates, particularly for dispersants, antioxidants and friction modifiers, he said.

The firm is projecting stronger additives demand from industrial lubricants: a 5.3 percent annual growth rate to $1.5 billion in 2017. Gear oils, greases, hydraulic fluids and general oils will exhibit the most rapidly rising additive treat rates in order to meet heightening performance demands, the report notes, with antiwear and extreme pressure additives experiencing the fastest growth in these markets.

The 212-page study is $4,900. Web: www. freedoniagroup.com

Greasemaker Loads Up

Loadmaster Lubricants LLC, an independent producer of specialty greases, has unveiled an ambitious $2 million plant expansion project for 2013. According to Todd Shearrer, vice president of technical sales, the expansion is intended to meet fast-growing demand by doubling production capacity at the companys 80,000-sq.ft. facility in Hugo, Minn., near Minneapolis.

The project includes installing two new grease reactors, four finishing kettles, and six more storage tanks, Shearrer said, adding, Combined with two new 125-horsepower Colloid mills, this new equipment will enhance our proprietary manufacturing process and continue to ensure customer lead times are met.

Loadmaster began manufacturing and sales in early 2008, and has focused on custom formulating greases for heavily loaded applications such as open gears, mines and stationary mills. In 2009, it completed a $1.5 million state-of-the-art R&D and quality assurance laboratory. The companys product portfolio includes lithium and lithium complex greases, aluminum complex and bentonite greases, among others.

Elco Adds China Assets

Cleveland-based lubricant additive company Elco has opened a sales office in Shanghai, China, and hired Ryan Huang as business manager for China. The expanded presence comes in response to growth in China, which has led to greater demand for specialized lubricant additives, the company said.

Having a representative office in China, said Elco President Doug Church, will allow for improved visibility into the needs of lubricant additive consumers, both large and small through our distributor, Ying Tai Trading. Dave Millin, vice president of additives business and technology, added, As our business continues to grow in China we recognized the importance of a local office to support our customers with their logistics needs and technical requirements.

Oronite: Progress on Projects

Four major capital projects, two each in Singapore and France, have reached milestones, says additives manufacturer Chevron Oronite. The investments, aimed at strengthening its supply chain and meeting demand for engine oil additives, include:

Expansion of its Singapore manufacturing plant, which when completed in early 2014, will have more than doubled in capacity since its commissioning in 1999.

Further expansion of the Singapore plant through a project now in the front-end engineering and design stage; this will significantly increase carboxylate detergent output.

Ongoing construction of detergent capacity at the Gonefreville, France, manufacturing plant, due to be complete later this year.

Further detergent production capacity at Gonfreville, thanks to a project that got the greenlight in February.

These investments form an integral part of our ongoing strategy to remain at the forefront of meeting lubricant additive demand for the next decade and beyond, said Ron Kiskis, president of Chevron Oronite.

Chem Arrow Steps into Mexico …

Los Angeles-based industrial lubricant maker Chem Arrow is expanding its presence in Mexico, where the manufacturing sector is experiencing resurgence due to global economic changes. The independent company said its southern California base, coupled with Mexicos growing economy, make Mexico the ideal location to begin its push for global expansion.

Mike Drieseberg, Chem Arrows corporate sales vice president, said the companys metalworking fluids, lubricants, cleaners and specialty chemical products are used in a variety of industries such as stamping, machining, forging, and tube bending, along with general fabrication and maintenance.

… and So Does Idemitsu

Japanese petroleum giant Idemitsu Kosan established a new lubricant sales company in Mexico that is slated to begin operations this month. Idemitsu Lubes Mexico will have an initial base of U.S. $1.5 million in capital and start with 12 employees, focused mainly on sales.

The new branch, which will be Idemitsus first direct venture into the Mexican lube market, has set an initial sales target of 10 million liters per year and aims to generate an annual turnover of $22 million by 2015. It will sell a range of products including automotive and motorcycle engine oils, industrial lubricants and other related products.

Mexicos demand for lubricants continues to increase at a dramatic pace. In 2012, the countrys motor vehicle production grew by 12.8 percent, and Idemitsu predicts strong growth in demand for high-performance lubricants including automotive oil.

Evergreen in Chapter 11

A California bankruptcy court on April 22 approved a motion by rerefiner Evergreen Oil and parent Evergreen Environmental Holdings to establish procedures to sell their assets. Evergreen had filed for Chapter 11 bankruptcy two weeks earlier, citing a continuing cash flow impact from a March 2011 fire at its 800 barrel per day base oil rerefinery in Newark, Calif.

In a court document, Evergreen said several parties had expressed interest in acquiring its assets in 2011 and 2012, but despite extensive negotiations, it was forced to file for bankruptcy before a suitable purchase and sale transaction could be finalized. Under the court-approved plan, Evergreen can continue to seek a buyer, aiming for a sale by July 8.

Briefly Noted

Universal Environmental Services (Avista Oil USA) commissioned its rerefinery in Peachtree City, Ga., on May 2, with base oil shipments beginning May 16… Shell said it is considering sale of its retail, aviation, and supply and distribution downstream businesses in Italy, but not its non-service station lubricants and marine businesses there… Gulf Oil Argentinas 6,000 metric tons per year lubricants blending plant in Le Reja, Argentina, in mid-April reached full production capacity for the first time since opening last year… Additives maker Infineum has signed a lease agreement for a three-story building for its proposed new business and technology center in China, continuing its Asia-Pacific expansion.

Faces in the News

Colleen Cervantes will become president of Chevron Lubricants on July 1, following the retirement of Danny Roden after 24 years of service. Cervantes joined Chevron in 1983, and is currently vice president of products supply and trading. Also, on June 1 the companys general manager for base oil, Patti Leigh, became general manager of planning and optimization, and Cary Knuth stepped into the position she left vacant. Knuth holds a B.S. From Brigham Young University and an MBA from Oregon State. He joined Chevron in 1990, and moves over from the fuels business.

After 13 years as president, Ron Kiskis is retiring from Chevron Oronite, which will welcome Desmond Des King into that role Sept. 1. King joins Oronite from Chevron Technology Ventures, where he serves as president. He holds a doctorate in chemical engineering from Cambridge and is a fellow of the Institution of Chemical Engineers.

Oronite also named Jirong Xiao vice president of sales and marketing, effective June 1, and Barbara Smith took over his previous role of vice president of products and technology. She had been senior business manager for refinery strategy at Chevrons Richmond, Ca., refinery. These moves followed the appointment of Colin Parfitt, formerly vice president of sales and marketing, to a position in Chevrons Gas and Midstream organization.

Chemicals supplier Monson Companies has hired Todd Wescott as industry manager for metalworking. Wescott has been in the metalworking industry for over 25 years, previously with Master Chemical and most recently with Ecovative Fluids Solutions.

Ashlee Breitner has been appointed business unit manager of the NSF Nonfood Compounds Registration Program. She takes over from Jessica Evans, who will now head NSFs Standards Division. Breitner has been with NSF for five years, and is based in Ann Arbor, Mich.