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Pernis to End Base Oil Production

Shell intends to cease making API Group I base oil at its refinery in Pernis, Netherlands, by early 2016, a company spokesperson has confirmed. Pernis is part of Rotterdam, and the Shell refinery there includes 7,100 barrels per day (370,000 metric tons per year) of Group I capacity. The company plans a phased closure of the base oil plants two trains.

A spokesperson told Lube Report the intention is to close train two at the end of 2015. The closure timing for train one is still under discussion, but our expectation is probably early 2016, the spokesperson said.

Fuchs Builds Anew in Australia

Fuchs announced plans to build a new lubricants manufacturing plant near Newcastle in New South Wales, Australia, by mid-2016. Fuchs selected the new 25,000 square meter piece of land in Beresfield because of its proximity to all major connecting highways to the north, south, east and west, and also because it is close to the companys Wickham facility, which the new plant will replace. All existing employees will be able to continue to work at the Beresfield plant.

Boomtime for Industrial Greases?

London-based Frost & Sullivan estimates the global industrial grease market will reach $1.8 billion revenue in 2019, up from $1.2 billion in 2012, with technological improvements and customized grease systems creating opportunities for market participants in a wider range of industries. The international market research firm last month published, Analysis of Industrial Greases Market and Opportunities for Bio-based Materials.

Anna Jarosik, Frost & Sullivans industry analyst for chemicals, materials and the food industry, told Lube Report the two top industrial grease applications in 2012 were manufacturing (e.g., oil and gas, pulp and paper, textiles and electronics) at 22.5 percent of global sales revenue and infrastructure at 16.4 percent. Steel milling was third at 14.1 percent and automotive followed at 12 percent.

Revenues were highest in North America and in Asia-Pacific, Jarosik said. The top two applications in North America by revenue were manufacturing with 32 percent and the steel industry at 18.4 percent. In Asia-Pacific, the top two applications in industrial grease were mining with 36 percent of sales revenue and manufacturing at 17.4 percent.

The study expects to see continuous technological improvements and innovative solutions, attracting business from new industry sectors. One particular bright spot will be highly customized grease systems, created through cooperation among grease designers, manufacturers and end users. Jarosik explained that customized grease systems typically refer to products that are not commercially available but designed especially for the needs of a certain client.

Another trend will arise from the shifting base oil types used to produce industrial greases. Not just API Group II and III base oils, but also vegetable oils, such as soybean, rapeseed and sunflower oils, will continue to gain popularity in the industrial grease market worldwide, the study predicts. That, in turn, is expected to result in various formulation changes that will be beneficial to some additive families, such as those used as oxidation and rust inhibitors.

CAM2 Heads to Miss.

Cam2 International has purchased a Vicksburg, Miss., blending and packaging plant from Shell that will produce over 100 million gallons of finished lubricants per year and serve as its new corporate headquarters. Without disclosing costs, the Golden, Colo.-based lubricants manufacturer said last month that it purchased the 93,000-sq.ft. facility – which has access to the Mississippi River – as a geographically strategic move. After careful consideration, our team concluded that Vicksburg and its port facilities were a perfect fit for a growing Cam2, providing us with low-cost freight access to the nearby sources of many of our raw materials, the companys president, Walter Tyson, said in a May 5 press release.

The site will serve as Cam2s mainstay for blending and packaging operations in the U.S. Southwest. Its location will allow for shipping and receiving via marine barge, rail or truck. The site has testing, warehouse and distribution facilities, and will be used to support both Cam2s own branded lubricants sales and private label offerings.

Also last month, Cam2 signed an agreement to be the U.S. distributor for Eni USA, a subsidiary of the Italian energy company. Using its extensive distributor network, Cam2 will market Eni and Agip brand lubricants including high performance motor oils, marine oils and others. Eni holds engine oil approvals from BMW, Mercedes Benz, Porsche, Volkswagen and other OEMs, and one goal will be to boost availability of Eni products to European automobile dealerships located across the U.S.

Puradyn Systems Win Military Contract

Puradyn Filter Technologies has been selected by a large military contractor and producer of military generators to provide bypass oil filtration systems for use on generator sets, as part of an award to the contractor by the U.S. military. The military specification requires a minimum oil drain interval of 750 hours on the equipment, with a stipulation of no degradation with respect to engine performance or life cycle. This single contract is projected to supply an estimated 750 Puradyn bypass filtration units over a three-year fulfillment period, with a total contract value of approximately $300,000.

This is the latest in a line of small military-based supply orders which began in 2006 when Puradyn systems were installed on trucks, still in use today, supplied by Freightliner for foreign military sales and again in 2008, said Kevin G. Kroger, Puradyns president. Our technology will help not only to meet the new requirements for safe extension of oil drain intervals, but will also help in achieving Military Commands directive to reduce sustainment material for equipment being used in military operations.

Bechem Goes Solo in U.S.

Carl Bechem GmbH on April 16 announced it has completed acquisition of its joint venture partners 50 percent interest in Etna-Bechem Lubricants LLC, resulting in the formation of Bechem Lubrication Technology LLC. Etna Products Inc. will continue to operate and serve its customers as an independently held company.

Our focus over the last few years was to establish successful Carl Bechem companies in China and India, while strengthening our technical sales and service reach into those local markets, Hans-Otto Franz, managing director of Hagen, Germany-based Carl Bechem GmbH, said in a news release. Establishing Bechem Lubrication Technology in the [United] States is in alignment with our goal to ensure Carl Bechem has established wholly owned entities in all the major engineering centers around the world.

Franz also announced that John C. Steigerwald became president of Bechem Lubrication Technology. He has over 35 years of lubricant industry experience, and had served as president of Etna-Bechem Lubricants Ltd. from its inception in 1999. Steigerwald told Lube Report that creating a larger footprint in the North American marketplace is definitely the companys focus. Based on continued expansion and growth over the last several years and in the future, he said, the plan ultimately would be to build a manufacturing plant in North America.

GM, Mobil 1 Extend Partnership

ExxonMobil and General Motors have renewed their 21-year technology relationship, which provides for using Mobil 1 as the factory-fill engine oil for Chevrolet Corvettes, including the new 2015 Corvette Z06 and 2014 Corvette Stingray Z51. Mobil 1 5W-30 meeting the GM Dexos 1 specifications also remains the recommended service-fill oil for all Corvette models.

OBrien Stepping Down at Ashland

Jim OBrien, the 59-year-old chairman and CEO of Ashland Inc., plans to retire at year end from the company he has led since 2002. As chief executive, OBrien transformed Ashland from a petroleum refining company with holdings in highway construction and chemical distribution into an $8 billion specialty chemical supplier. He also headed its Valvoline lubricants business as president from 1995 to 2001.

OBrien joined Ashland as an accountant 38 years ago, following an internship. He went on to work in operations, sales and marketing before being tapped for the job of running Valvoline. During his time there, OBrien implemented a master brand strategy, and focused on boosting sales of high-value, premium products rather than volumes alone.

As Ashland CEO, OBrien steered the company through dozens of acquisitions and divestitures to mold its current shape. In the companys most recent fiscal year, his total compensation amounted to almost $7 million. Ashlands board of directors has begun the search for a replacement, looking at both internal and external candidates, and has hired an executive recruiting firm to assist its selection.

Sea-Land Sells Diacids for Invista

Sea-Land Chemical Co. has signed a formal distributor agreement with Invista as a North American distributor of dodecanedioic acid and Corfree M1 acid. The products that Sea-Land now distributes are Invistas C12 high performance long chain acids. The primary industries for these products include metalworking lubricants, coatings and corrosion inhibitors.

Total Barges Along

Total Lubmarine celebrated the newest addition to its lubricants barge fleet, the Trafuco 7. The naming ceremony for the newly-built double-hull vessel took place April 2 at the Port of Antwerp, in Belgium. The barge, with 795 cubic meter capacity, transports Total Lubmarines oils, system oils and trunk piston engine oils, with a minimum order of 2,000 liters per grade. It serves the Port of Antwerp, and operates using Total Lubmarines own Bioneptan and Biomultis biolubricants for the stern tube, bow thruster and deck equipment, in adherence to the ports Environmental Ship Index scheme. Total also recently added new barges to service marine vessels in Rotterdam.

The Port of Antwerp is the biggest port area in the world and handles approximately 14,200 vessels, 191 million tons of cargo and 8,600,000 TEU annually.

Spectro Rebrands

Spectro Inc., which makes and supplies fluid analysis instruments, has officially changed its name and undergone a corporate rebranding. From today forward the company becomes Spectro Scientific to more accurately reflect our deep roots in the science of fluids analysis, President and CEO Brian Mitchell announced in mid-April. Spectro Scientific and its subsidiaries, including Wilks Enterprise of Norwalk, Conn., specialize in analytical instrumentation, software and services for industrial performance fluids analysis. It is one of the largest worldwide suppliers of oil, fuel and processed water analysis tools to industry and the military. In recent years, the companys product development focus has been on portable, easy-to-use, fluid performance analysis solutions that facilitate high productivity, repeatability and accuracy. Clients include petrochemical, mining, power generation and offshore oil drilling companies as well as commercial testing laboratories.

Advance Sells Die Casting Unit

Wyoming, Mich.-based Industrial Innovations, which makes industrial lubrication equipment used in metalworking industries, has acquired Advance Products Corp.s Automation division, known for its die casting solutions. The new entity will do business as Advance Automation and be branded as an Industrial Innovations Company. All operations are being consolidated within a single Industrial Innovations location to serve die casting, foundry and metalworking industries.

The acquisition expands Industrial Innovations existing lubrication management footprint. Advance has been serving the die casting industry since 1948, supplying reciprocating die sprayers, servo ladlers, robot extractors, temperature control systems and die spray and plunger tip lubricating systems.

Briefly Noted

Global filtration technology provider Pall Corp. on May 1 announced it has acquired Filter Specialists Inc., a worldwide supplier of filtration products based in Michigan City, Ind.

RBC Capital Markets is reviewing strategic alternatives for the industrial division of its Canadian company Newalta – which includes Newaltas 400 b/d API Group II rerefinery in North Vancouver, B.C. Options for the business may include a potential sale, IPO or spin-off.

Lubrication Technologies acquired the lubricants business of St. Paul, Minn.-based Yocum Oil.

Finnish rerefiner L&T Recoil Oy and its parent company EcoStream Ltd. filed for bankruptcy at the end of March, a former company official confirmed to Lube Report. An estate administrator is seeking buyers for assets that include a 1,000 b/d rerefinery in Hamina, Finland.

SI Group signed a deal to acquire Albemarles antioxidants, ibuprofen and related business and assets, including a lubricant antioxidants line. Terms were not disclosed.

Faces in the News

Colin Abraham is the new head of Shell Lubricants Americas and downstream LNG. He took over on April 1 from Istvan Kapitany, who moved into another role as Shells global executive vice president for fuels. Abraham is an environmental chemistry graduate of Edinburgh Univ., and also holds an MBA in finance and marketing. He joined Shell in 1990, and most recently was vice president of marketing for Shell Lubricants.

Ana Cura has been named regional director for Nynas Americas, a subsidiary of Swedens Nynas AB. With a chemical engineering degree from UTN in Buenos Aires, and postgraduate training that includes Harvards Leader­ship Program, Cura has been with Nynas AB since 2001. She most recently served as general manager and regional sales manager for Latin America. At Nynas Americas, she succeeded Jay Flint, who moved in April to take on the role of general manager of H&R Group US Inc. in Houston. Flint in turn succeeded Terry Hoffman, H&Rs former managing director. Hoffman remains associated with H&R as a non-exclusive consultant, via his consulting firm T Hoffman LLC.

Data supplier OATS has tapped Richard Carney for its new chief operating officer. Trained as an economist, Carney has spent many years in data and publishing, including roles with DRI, ThomsonReuters and Ziff-Davis. At OATS, he will be working to accelerate strategic planning and launch new data products.

Ohio-based specialty chemical distributor Sea-Land Chemical Co. has promoted Sakura Olah to the new position of director, customer relations and international operations. She will continue to lead the customer service department, and will also take responsibility for all non-sales functions at the companys subsidiaries. Sea-Land also promoted Craig Lundell to director, supplier relations, adding procurement, logistics and warehousing responsibilities while continuing to oversee the companys supplier relationships. Lundell will relocate to the companys Westlake, Ohio, office in mid-year.

Cindy Esler has joined Savant Labs as customer service technician. She brings 17 years of chemical industry experience to the Midland, Mich., based testing company. She joins Savant from Dow Corning.

NLGI-India Chapter presented its prestigious P.P.C. Gonsalves Memorial Award to Graham Gow, Axel Internationals business development manager, for his lubricating grease presentation, No Middle Option, or why little has changed over the past 70 years. This is the groups highest award, and honors a technical paper presented during its annual meeting.

Edla Simeon is the new senior formulation scientist at Hydrotex, directing R&D for gear oils and also serving as the quality management specialist for the R&D department. She holds a chemistry degree from Univ. of Quebec and a masters in polymer chemistry from the Univ. of Moncton, and her chemical industry experience includes PPG industries and Valspar Corp. Also, John Bickley has joined Hydrotex as vice president of sustainable utility sales, following roles with TXU, EPRI, North American Electric Reliability Council and Shermco Industries.

Chemical distributor Walsh & Associates has named Steve Hamm as environmental, health and safety coordinator. He is a graduate of the Univ. of Missouri at Columbia with a bachelors degree in chemical engineering. Previously, he was with the U.S. Army Corp of Engineers.

Correction

On page 42 of Mays issue, footnotes were switched on the list of Gas-to-liquids Projects. Juniper GTL plans to use SGCEnergias XTLH Solution process. G2X Energy will employ a process from ExxonMobil Research & Engineering.

Clarification and Update

Mays article Tribologys Place is Space said the Kepler space telescope is 3,000 light years away from any repairman. Despite this tongue-in-cheek reference to a popular song, Kepler is actually pretty close, trailing the Earth in a 372.5-day orbit around the sun. At press time, NASA approved a limited mission for Kepler using its two functional reaction wheels. Beginning May 30, the telescope will stare at whatever sections of space it points at and attempt to detect areas of unusual brightness. These bright spots

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