Calumet Specialty Products Partners recently announced plans to invest up to $40 million to double synthetic lubricants production at its esters facility in Louisiana, Mo., by August 2014. The facility currently has the capacity to produce 32 million pounds of ester-based aviation, refrigeration, air conditioning and industrial lubricants.

The state of Missouri is supporting the expansion by offering tax incentives to Calumet if it meets strict job creation and investment criteria, according to a recent press release from the Missouri Department of Economic Development. The company expects the project will include a 25,000 sq.ft. addition at the 22-acre site and will create at least 21 jobs.

Calumet is also looking to add new products to its portfolio and expand its customer base. Additional products will be added to serve military aviation, textiles, commercial aviation, highly specialized plasticizers for coatings, and applications where complex, high viscosity polyol esters are in demand. said Rick Ingle, sales director for synthetic lubricants.

Grease Output Dipped in 2012

The worlds lubricant companies produced an impressive 2.47 billion pounds of lubricating grease in 2012, according to recent data from the National Lubricating Grease Institutes 2012 Grease Production Survey Report. In 2011, the global total was a slightly higher 2.56 billion pounds.

Almost 40 percent of the 2012 volume was manufactured in China: Pro ducers there reported making a whopping 931 million pounds, more than was produced in North America and Europe combined, said Tyler Jark of Lub ricating Specialties Co., who presented the survey results at NLGIs annual meeting in June.

This annual survey relies on voluntary submissions of grease production data, and is broken down by a multitude of categories, such as grease thickener type and geographic region, he said. As in prior years, lithium and lithium complex greases are the leading type made worldwide, with almost 77 percent of the total. A very distant second place goes to calcium soap greases, the report shows.

Jark explained that the NLGI grease survey, which is the most comprehensive in the world, consolidates data from 213 companies who together operate 250 grease plants. All data is gathered in confidence by research firm Grease Technology Solutions LLC, so individual company information is never seen by anyone else, he emphasized. Data for three prior years is also included.

Copies of the detailed 30-page report are free to NLGI members and survey participants. Others may purchase a copy for $200 at www.NLGI. org/products-page/.

Ineos Invests in LAO Ineos Oligomers plans to build a new linear alpha olefin unit in the United States by late 2016 and expand its Canadian LAO unit in 2014, partly driven by demand for high performance automotive lubricants. It is our intention to build a new world-scale LAO unit on the Gulf Coast of the United States, Bob Learman, CEO of Ineos Oligomers, said in June. The unit will have an initial capacity of 350,000 metric tons, and like our existing units, it can be built with a further 50 percent expansion in mind. So ultimately the capacity could reach over 500,000 metric tons.

The expansion of our LAO capacity will also provide significant additional feedstock capacity to support the anticipated growth of our PAO business, Learman remarked.

Kevin Ratliff, market manager LAO/PAO Americas, said the new production will support the expected growth in U.S. PAO demand as well as global growth. Our LAO technology also produces a high percentage of C10 and C12 alpha olefins, which are needed for the growing PAO demand, Ratliff explained. While the overall growth of the lubricant market is moderate, it continues to demand higher performing products. This demand for higher performing lubricants drives the need for top-tier base stocks like PAO. Therefore, with the joint growth in higher performing polyethylene and lubricants, we foresee a need for both LAO and PAO capacity.

More Group II for S-Oil

South Korean base oil producer S-Oil last month said it will increase Ultra-S base oil capacity by another 3,000 barrels per day, with a project that is on target for completion in October. The capacity expansion will be achieved through the revamping of its refinery in Onsan and will include added capacity for API Group II+ cuts (2 and 3 cSt) and Group III (4, 6, 8 cSt).

S-Oils current base oil capacity is estimated at 20,500 b/d for Group I/II and 15,000 b/d for Group III base stocks. The expansion should raise the producers total capacity to about 38,500 b/d.

Clean Harbors Bids for Evergreen

California rerefiner Evergreen Oil and parent Evergreen Environmental Holdings have designated Clean Harbors – parent of fellow rerefiner Safety-Kleen – as initial winning bidder for Evergreens assets, according to California bankruptcy court documents last month. Evergreen Oil filed for Chapter 11 on April 9, with the aim of selling its assets this summer.

The companys investment banker received numerous bids by May 7. Evergreen and its banker determined Clean Harbors should be designated the initial winning bidder and act as the stalking horse bidder for the assets, subject to bankruptcy court approval.

Norwell, Mass.-based Clean Harbors acquired Safety-Kleen, including its rerefineries in East Chicago, Ind., and Breslau, Canada, for $1.25 billion in December 2012. Clean Harbors subsidiaries were among the unsecured creditors in Evergreens bankruptcy filing.

Lukoil Lubes Edge Westward

Russian oil major Lukoil has acquired the lubricants business of Austrian energy group OMV, in a bid to become a key player in the European lubricants market. The transaction is expected to close by the end of this year. Terms were not disclosed.

Under the deal, LLK-International bought OMVs lubricant sales and distribution operations across nine countries (Germany, Austria, Czech Republic, Slovakia, Hungary, Slovenia, Serbia, Romania and Bulgaria). The deal also includes a 35,000 metric ton per year blending plant near Vienna, and the Bixxol motor oil brand. However, the transaction does not include OMVs lubricant business in Turkey operated by its subsidiary Petrol Ofisi.

PdVSA to Make Group II

State-run Petroleo de Venezuela S.A. announced it hopes to produce 6,500 b/d of API Group II base oil at its Amuay refinery by 2019, using proprietary Isodewaxing and Iso-finishing technologies licensed from Chevron Lummus Global. Amuay currently produces 1,250 b/d of Group I, while its sister Cardon refinery houses PdVSAs 4,800 b/d Group I plant.

No base oil refineries in Venezuela currently produce Group II, and the amount PdVSA estimates it will produce far exceeds the countrys demand, Stephen B. Ames of SBA Consulting observed. There is certainly a need for Group II in Venezuela, but they could get it from a number of sources today, including the North American suppliers as well as Chevrons Pascagoula plant that starts up later this year, he said. He noted that Amuays proposed start-up date of 2019 coincides with the expiration of PdVSAs lease for its third base oil plant, Refineria Isla in Netherlands Antilles. Many speculate the Dutch government will not renew the lease, Ames said, which would otherwise result in PdVSAs diminished base oil capacity.

Chevron Adds UK Group II Hub

Chevron Lubricants added a third storage facility for API Group II base oil in Europe, in Eastham, England. The company already had Group II storage facilities in Antwerp, Belgium, and Hamburg, Germany. The Eastham facility will carry Group II grades 100, 220, 600 and Group II+ 110. The terminal is fully operational now, Alan Outhwaite, Chevron Lubricants base oil business development manager, said last month.

The Eastham location is appealing from a logistics standpoint, he added. Eastham is located in the North West of England. It has good vessel access as well as excellent road connections, as it is close to an extensive motorway network.

Chevrons new 25,000 b/d base oil plant nearing completion in Pascagoula, Miss., will supply the hubs in Europe.

Sunny Days at Croda

Croda is installing a 775 kW solar energy system its Atlas Point esters manufacturing site in New Castle, Del. The $2.3 million project, expected to be completed by year end, will be located on a 2.5 acre open area on the property, as a ground-mounted system. The unit will generate approximately five percent of the sites electricity. When combined with the landfill gas project completed on the site in 2012, Croda estimates the site will achieve 60 percent or more of its total energy from non-fossil, renewable fuel. Additionally, this project with reduce the sites annual CO2 emission by more than 1.2 million lbs.

Atlas Points landfill gas project was profiled in the May issue of LubesnGreases.

Majors Collaborate in Singapore

Singapore Lube Park, a joint venture among Shell, Sinopec and Total, will build and operate facilities in Tuas, southwestern Singapore, by 2015 to benefit each partners adjacent lubricant and grease manufacturing plants. The first such collaboration in the lubricants industry, the park will cover operations of shared facilities, including an import and export jetty, common pipelines, infrastructure and exclusive storage facilities to service each partners respective lube oil blending plants and grease manufacturing plants. Construction is expected to start later this year, with completion targeted for 2015.

Each company has plans for new plants on separate sites adjacent the lube park. Shells will replace a plant in Woodlands, Singapore; Totals will replace two older plants in Singapore; and Sinopecs new plant in Tuas just started operations.

The latter is Sinopecs first outside of China. The 100,000 metric tons per year lubricants blending plant represents an investment of $94.5 million and started up in July.

Group II for Cilacap?

SK Lubricants, Pertamina and Patra SK are studying the potential for API Group II base oil production at Pertaminas 8,600 b/d Group I refinery in Cilacap, Indonesia. With the signing last month of a Memorandum of Understanding, the three companies have undertaken a six-to-eight-month feasibility study, reviewing the technical production aspects as well as market and economic factors of producing Group II at the Cilacap facility. Subsequently, the three may go on to form a joint venture company, says Pertamina.

In related news, SK completed the reconfiguration of a 300,000 ton per year lube oil train at its own refinery in Ulsan, Korea, which started production of 500N in late June. Cargoes from the plant already are getting ready to ship under term contracts to China and India, according to sources.

Bragging Rights

Nestle USA has switched its private fleet of Class 8 tractors over to Safety-Kleens EcoPower heavy-duty engine oil, made with high-quality rerefined base oils. Using EcoPower reduces greenhouse gas emissions and helps to protect the environment, said Nestles Mike Desso, director of corporate environment and safety. Switching to EcoPower for our private fleet is one example of how we are managing our business in a way that is supportive of the environment.

R&D Magazine picked NanoMechs TuffTek as a winner of the coveted R&D 100 Award, citing the products nano-composite patents that use bio-inspired and nano-engineered technology for advanced machining of automotive and aerospace components. 2013 has been an excellent year for NanoMech, Chairman and CEO Jim Phillips said. The company continues to gain momentum and receiving the Oscar of Innovation is a tremendous honor for the NanoMech team.

Chrysler Group in June honored Shell Lubricants as 2012 Supplier of the Year, in recognition of the oil majors collaboration with its Mopar parts, service and customer-care brand. Shell supplies chrysler with factory-fill lubricants, technical cooperation and dealer-level program support, and also supplies Mopar, Pennzoil and Shell brand lubricants for Mopars aftermarket oil program.

Faces in the News

Paul Waterman on July 1 became CEO of Castrol and senior executive vice president of BP Lubricants, succeeding Mike Johnson, who will retire at year end. Joining Castrol in 1994, Waterman spent 11 years in the lubricants business, out of his 20 years in the petroleum downstream in the U.K., U.S. and Australasia. He was vice president of the automo-tive Americas region in 2007 and 2008, vice president in 2009 of Castrols B2B businesses (marine, industrial, aviation and energy lubes), and since 2010 ran the companys Australia and New Zealand fuels value chain.

Steve Mulvaney of Chevron Lubricants has joined the technical advisory council of the Petroleum Quality Institute of America, which tests and reviews finished lubricants for compliance with their labeling claims and industry standards. Mulvaney is technical support manager with Chevron in Richmond, Calif.

Amalie Oil has tapped Dan Casey as Central U.S. regional manager, responsible for growth of the companys branded and private-label lubricant and chemical sales. Casey has extensive aftermarket industry experience, with product experience that includes fluids, hard parts and lighting. Holding an MBA from Syracuse, he joins Amalie from Beck/Arnley.

Kaustav Sinha, associate scientist with Dow Chemicals Performance Fluids R&D team, has been awarded the 2013 Stefan Pischinger Young Industry Leadership Award by SAE International, for his work in developing fuel-efficient engine oils. This appears to be the first time the prestigious award, which singles out those under the age of 35 who have shown high potential for leadership, has gone to someone in the lubricants field. Sinha joined Dow from Infineum USA in 2012 and is leading the development of polyalkylene glycol based automotive lubricants.

Wallover Oil, the Strongsville, Ohio, maker of metalworking fluids and industrial lubricants, has promoted Kevin Marquis to director of sales. He started at Wallover in 1997, and most recently was national sales manager. Marquis now oversees 13 regional sales managers along with associated administrative staff, and is developing sales strategies and profit targets for the company.

PCC Chemax has added Jimmy Chen as its oilfield formulator, to provide product development, testing and technical support for the oil-field industry. Chen is an experienced chemical engineer with an MBA from Illinois Institute of Technology, and a chemical engineering degree from Washington Univ. in St. Louis, Mo.

Ken Tocco is Sea-Land Chemicals newest hire, as team leader for supply chain. He comes to the specialty chemical distributor with over 22 years of experience in logistics and supply chain management. Tocco also has essential certifications including HazMat, IATA, IMDG and RCRA.

Kyle Daybell is Polaris Laboratories new territory sales manager for the U.S. Pacific West, with a territory that includes Alaska, Ariz., Calif., Hawaii, Idaho, Nev., Ore., Utah and Wash. Based in Salt Lake City, he brings eight years of industrial and equipment sales experience to the fluid analysis company.

Ergons Chris Marquette has accepted the position of insulating oils account manager in the companys Petroleum Specialties Marketing Division. Marquette has been with the base oil refiner and marketer for three years, and is now managing its HyVolt electrical insulating oils business. Also, Sharon Dukes has been named inside sales account manager, responsible for all HyVolt field fill, inside sales ands sales support. She has been at Ergon for 14 years.

Arash Hassanian, Hoover Containers director of international sales since 2008, has been promoted to vice president, international sales, responsible for global sales, marketing and business development as well as pricing and revenue management functions. Hassanian, who holds an executive MBA from Shiraz Industrial Management Institute and a petroleum engineering degree from Azad University of Omidyeh, joined Hoover in 2006.

Paul Mitcham is now president and CEO of Yupo Corp., the U.S. subsidiary of the Japanese packaging and paper supplier. The first American to reach such a position, he succeeds Masakuni Fukutome, who returned to Japan as general manager, administration. Mitcham will direct Yupo Americas strategic growth initiatives, which include expanding its Chesapeake facility, adding employees and exploring new markets in specialty packaging. He began with the company in 1999 and was most recently its sales v.p. Also, packaging industry veteran Stephen Shultz is now vice president of sales, and sales executive Tom Barrett is to manage Yupos technical services group.