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Evonik is expanding its Jurong Island, Singapore, oil additives plant in a move that will nearly double the sites production capacity. The Germany-based company said the project is a response to strong growth in the Asian market due to expanding mobility and increasing demand for high-performance lubricants with higher additive content.

When completed in 2015, the Singapore plant will be the largest of Evoniks six additive plants. Our expansion strategy supports [customer] growth directly from a modern, efficient local production center, with logistics that make a contribution to resource efficiency at the same time, said Thomas Haeberle, an Evonik executive board member. The company notes that Singapore offers excellent supply chain logistics and infrastructure, intellectual property protections and a skilled workforce; it also has local support from the Singapore Economic Development Board.

Evonik markets its oil additives under the brand name Viscoplex. It began operating the plant in Singapore in 2008.

Croda Buys Chinese Derivatives Maker

Croda International has won regulatory approval from China to buy a controlling interest in specialty derivatives maker Sichuan Sipo Chemical. Croda will pay $58.6 million to Sichuan Forever Holding Co. Ltd., for a 65 percent share. Sichuan Forever will retain the minority share.

Established in 1993 and based in Mianyang City, Sichuan Province, Sipo makes derivatives from natural raw materials such as vegetable oil. Its products include primary amides, fatty acids and specialty esters, which are used in lubricants, lubricant additives, lubricant base stocks and greases and as emulsifiers for metalworking fluids.

The purchase is intended to help the U.K.-based Croda improve its operations in China and across Asia. The deal will allow us to develop our customer base and drive sales growth in Asia, said Croda CEO Steve Foots.

QualiChem Completes Expansion

QualiChem, a metalworking fluid and water treatment chemical manufacturer based in Salem, Va., has finished an expansion of its facilities, in a move that will allow a 300 percent increase in output in coming years. The project increased total square footage by 70 percent and added space for all aspects of its business from R&D to shipping and receiving.

The project was spurred by growing demand, said company president Glenn Frank. We have seen a steady growth rate over the past 12 years. We have sustained steady year-on-year growth, even during the economic downturn starting in 2008, due to our unrelenting focus on new product development, customer service and support for our distribution partners.

Qualichem offers cutting and grinding fluids, straight oils, rust preventives and metal cleaners in addition to various water treatment products.

Radco Cuts Ribbon on HQ

Radco Industries, which manufactures specialty fluids and lubricants for the military and other markets, has opened a new headquarters and manufacturing plant in Batavia, Ill. The new 28,000-sq.ft. facility significantly expands the companys Xceltherm heat-transfer fluid manufacturing capacity, and will allow growth in existing products as well as the introduction of new ones.

The move helps position us to take advantage of expanding domestic and global opportunities, said Radco CEO Michael Damiani. The new facility joins the companys nearby LaFox, Ill., plant, which will continue to produce its Radcolube military lubricants, hydraulic fluids and thermal fluids used in solar panels, refineries and other industries.

Biorefinery Starts Up

Elevance Renewable Sciences and agribusiness Wilmar International Ltd.s biorefinery in Indonesia has begun shipping commercial products, including chemicals used in making lubricants and base stocks. Their joint venture plant in Gresik, Indonesia, produces specialty chemicals, including multifunctional esters such as 9-decenoic methyl ester; biobased alpha olefins such as decene that can be made into polyalphaolefins for synthetic lubricants; and a mixture of oleochemicals. Capacity is said to be 180,000 metric tons per year (about 400 million pounds), with the ability to expand up to 360,000 t/y.

Elevance modifies renewable oils (palm oil for now, with others like canola and soy to come) with chemical catalyst technology to make specialty chemicals. The molecules are said to combine the functional attributes of an olefin, typical of petrochemicals, and a monofunctional ester or acid, typical of biobased oleochemicals, into a single molecule. Target markets include global suppliers of lubricants and additives. The olefin products are known for their use in a variety of lubricant and additive applications, said Robin Weitkamp, Elevances senior vice president for lubricants and additives.

Global Lube Demand Seen Rising

World demand for lubricants is expected to increase 2.3 percent per year to 43.9 million metric tons in 2017. Fastest growth will be in Asia, supported by rising vehicle ownership rates and ongoing industrialization in large countries such as China. Above-average increases will also occur in South America, the Middle East and Africa, as these regions each experience healthy economic growth, rising manufacturing output, and expanding motor vehicle parks – all of which will contribute to gains in lubricant consumption.

By contrast, demand is foreseen to remain nearly flat in the developed countries of North America and Western Europe, where efficiency gains will offset the effects of rising economic and industrial output. In these regions, lubricant suppliers will benefit not from volume growth but from increasing demand for premium, high-value products, such as synthetic and biobased lubricants. These and other trends are presented in World Lubricants, a new study from Cleveland-based industry market research firm Freedonia Group.

The study predicts:

Rapidly growing motor vehicle parks will support gains, but engine oils will be subject to downward pressure from lengthening drain intervals, and as a result will grow in line with the average pace.

Hydraulic fluids and process oils will see the fastest gains, due to the wide range of applications these products are used in.

Industrial lubricants will see healthy growth, especially in developing countries of Asia, Eastern Europe, South America, the Middle East and Africa.

As well, Freedonia expects that growth in markets such as agriculture, construction and non-motor vehicle transportation together will outpace both the motor vehicle and manufacturing markets through 2017. The study World Lubricants (477 pages) is available for $6,300. Details: www.freedoniagroup.com

Gulf Oil Spins Off Lubes

Gulf Oil Corp. Ltd., part of Indias Hinduja Group, said it will demerge its lubricants division as a separate subsidiary, effective April 1. The move will separate the lubricants business from the privately held conglomerates other segments like explosives, mining, infrastructure and property development. The new lubricant company will be listed separately on two stock exchanges, the Bombay Stock Exchange and the National Stock Exchange of India.

The announcement came on the same day as the conglomerates earnings results for the quarter ending June 30. The Aug. 7 earnings release noted that net turnover for the lubes division was about $33.7 million, and said it is enjoying increased market share in lubricant categories such as premium diesel engine oils, motorcycle engine oils, and OEM business.

MCC Buys Mexicos Flexo Print

Cincinnati-based Multi-Color Corp. has acquired fellow label-manufacturer Flexo Print S.A., based in Guadalajara, Mexico. Flexo Print is a producer of pressure-sensitive labels, with annual revenues of approximately $30 million. Multi-Colors president, Nigel Vinecombe, said the acquisition offers significant growth opportunities in Mexico. Flexo Prints president, Fernando Aranguren, will stay on to lead the company, which will change its name to Multi-Color Corp. (Mexico).

Delfin Stays the Course

A Delfin Group Worldwide official last month said Delfin Group USAs Charleston, S.C., blending plant will continue to operate, denying industry rumors that the plant may close. The South Carolina facility makes engine oils, hydraulic oils, antifreeze and diesel exhaust fluids.

In a press release, Timur Sabirov, vice president of operations for Moscow-based Delfin Group Worldwide, said, The Delfin Group USA Charleston, S.C., plant will remain in operation under the leadership of General Manager Billy Ackerman, and with a strong administration and operational team. The plant continues to show rapid growth and is a vital part of Delfin Groups worldwide oil and lubes businesses. He said the press release was intended to quell rumors that the South Carolina plant will be closed. Delfin USA terminated its president, John Gordon, in late April. Last year, it fired its previous president, Markos Baghdasarian, following his arrest on charges of exporting oils to Iran, in violation of the U.S. economic embargo.

Trucking: Headed Upward

The American Trucking Associations is predicting that the industrys share of freight transported will grow to 70.8 percent by 2024. Thats an upward revision from 68.5 percent of the volume, which it forecast in 2012. The new figure is part of the ATAs Freight Transportation Forecast to 2024. The study profiles the current state of the freight transportation industry and gives an outlook for all transport modes during the coming decade. Among its 10-year predictions:

Overall freight revenue will grow 63.6 percent to $1.3 trillion, with truckings share of the revenue increasing slightly to 81 percent.

Truckload volume will increase 3.2 percent annually through 2018, slowing to 1.1 percent a year after that.

Rail carload market share will decline to 14.2 percent from 14.8 percent in 2011.

For details or to purchase a copy, visit www.atabusinesssolutions.com.

Lanxess Relocates

Germanys Lanxess, parent of additive manufacturer Rhein Chemie among other specialty chemical companies, has moved into its new headquarters in Cologne and officially began managing its global operations from there on Aug. 1. About 1,000 employees will be housed at the 22-story Lanxess Tower in the citys district of Deutz. Production is not affected by the move and will remain at current locations.

Rowe Marks Milepost

Rowe Mineralolwerk recently marked the completion of the shell of its new building in Worms, Germany. The company is building a new $53 million state-of-the-art lubricants plant, which will have 120,000 ton/year production capacity and serve as its headquarters when completed at the end of this year. The company will be adding storage tanks nearby, too.

Rowe also plans to grow the number of staff to 240, about 80 more than the lubricant producer employs at its current headquarters in Bubenheim. Manufacturing of motor oils, gear oils and hydraulic oils will shift to Worms, while Bubenheim will continue to produce industrial lubricants, brake fluids and antifreezes.

Briefly Noted

Lubricant marketer GH Berlin-Windward on July 1 acquired Greenfield, Mass.-based Sandri Cos. lubricants division, which distributes commercial and industrial lubricants in New England and eastern New York.

Private equity firm Penfund completed a minority equity investment in Toronto-based Wakefield Canada Holdings, distributor of Castrol motor oils.

Amet Packaging has acquired assets of Oden Corp., adding to its pool of packaging companies and extending its reach into the lubes and greases packaging market.

Aegean Marine Petroleum Network and SK Lubricants announced a global cooperation agreement on marine lubricants:Their j.v. Dynamic Oil Trading, a global trading company for marine fuels and lubricants, plans to launch a new operation in Dubai later this year.

Puradyn Filter Technologies and MER Equipment have entered into an exclusive agreement for distribution of the formers filtration systems to the commercial marine industry along the U.S. West Coast. The agreement represents potential orders of $2.6 million over the next three years, said Puradyn. Marine industry supplier MER boasts one of the West Coasts largest inventories of marine equipment and parts.

Orsk Reviving Group I?

Obsolete refinery technology prompted Forte Invest to shut down the API Group I base oil plant in Orsk, Russia, early this year – but could base oil production at the 3,700 b/d plant resume in the future? An ongoing reconstruction is taking place right now at the refinery and we do not exclude the possibility to resume high quality base oil production in the future, officials with Moscow-based Forte Invest, which bought the refinery from Russneft in 2011, recently hinted. However, the current modernization work mainly involves fuel production, says the companys website.

Faces in the News

Anju Singla is the new manager of North American sales and marketing at Kimes Technologies. The supplier of sulfonate-related products cited her mix of education and experience in chemistry, technical sales and business administration in making the appointment.

Bill Kennedy is now director of environmental health, safety and compliance at Universal Lubricants, a company he joined in 2001. The Wichita, Kan., company said Kennedys section will be tasked with ensuring company and customer compliance with all federal and state workplace and environmental regulations.

Wallover Oil, which makes metalworking fluids and industrial lubricants, has picked Mark Csikos to be regional sales manager for parts of Ohio and Michigan. Csikos is a graduate of the University of Pittsburgh and has been in sales for 17 years.

Ryan Slopek has been named a formulation scientist at Hydrotex, a maker of high-performance lubricants and fuel products. Slopek, who holds a Ph.D. in chemical engineering from Georgia Tech, will be tasked with formulating environmentally safe, high-performing synthetic and biobased lubricants and greases. He comes to Hydrotex from the Agricultural Research Service branch of the USDA.

Songwon has appointed Thomas Schmutz as director of global technical service, steering the technical direction for the companys range of antioxidants, lubricants, acid scavengers, plasticizers and other specialties. He joins Songwon from Chemtura Europe, after experience with Ciba and Dow Europe.

Correction

Augusts article Biodegradable Grease: A Late Bloomer? (page 46) mistakenly said Fuchs Lubritech acquired Aseol AG from Shell in 2010. In fact, Fuchs Petrolub Group acquired Aseols Food Lubricants Business (not all of Aseol), and assigned it to the Fuchs Lubritech business.