Ford Shuns New HDEOs
In a surprise move, Ford has issued a diesel engine oil specification, WSS-M2C171-F1, covering all its old and new diesel engines. This specification firmly disallows the use of API CK-4 and FA-4 categories, which the American Petroleum Institute begins licensing this month. Ford says only API CJ-4 category oils issued before 2016 are acceptable for its diesels until a Ford 6.7L diesel engine wear test is completed and approved by ASTM.
Ford notified the industry at an Oct. 26 meeting of the Diesel Engine Oil Advisory Panel – a stakeholder group which represents engine builders and oil and additive companies – that 6.7L engines tested on CK-4 and FA-4 formulations had experienced valvetrain wear not encountered with CJ-4 formulations. The CJ-4 formulations contained more than 1,000 parts per million phosphorus, an effective antiwear ingredient, while the CK-4 and FA-4 formulations were below that threshold. As a result, Ford declared that it has concerns about putting CK-4 and FA-4 formulations with less than 1,000 ppm phosphorus into any of its engines.
In a statement, Ford said FA-4, which was developed for heavy-duty truck operators looking to enhance fuel economy, is unsuitable for Ford trucks because its viscosity is too low. As well, tests with some CK-4 formulations show inadequate wear protection. So for now, it will stick with CJ-4 oils with more than 1,000 ppm phosphorus, and has asked API to set that as a minimum phosphorus limit for CK-4.
Chevron Lubricants Shawn Whitacre, chairman of ASTMs Heavy Duty Engine Oil Classification Panel, which is responsible for the engine tests that support CK-4, recalled that Ford first voiced concerns in January 2015, based on two tests it conducted during 2014.
They believed, and still do, that the wear mechanism in their 6.7L is not addressed by the three existing wear tests in the category, Whitacre told LubesnGreases. Ford historically has recommended API diesel categories, but it is now readying its own spec, WSS-M2C171-F1. It will be based on CK-4 and will include a valvetrain wear test run on a 6.7L engine. The company expects to complete that test during first-quarter 2017 and then turn it over to ASTM.
HollyFrontier Buys Petro-Canada Lubes
HollyFrontiers acquisition of Suncor Energys Petro-Canada Lubricants business for 1.1 billion Canadian dollars (U.S. $845 million) will diversify HollyFrontiers base oil portfolio and make it a prominent player in the finished lubricants market. The transaction is expected to close in the first quarter of 2017.
The purchase includes Petro-Canadas Mississauga, Ontario, base oil plant, which has capacity to produce 15,600 barrels per day of API Group II and Group III base oils. Along with a blending plant, HollyFrontier received a perpetual exclusive license to use the Petro-Canada trademark in association with finished lubricants.
Adding a base oil plant in eastern Canada should give Dallas-based HollyFrontier better access to finished lubricant users in the Eastern and Midwestern United States. There are huge finished lubricant markets that are in closer proximity to this plant than the Gulf Coast, most specifically the East Coast and Chicago markets, HollyFrontier President and CEO George Damiris said. So we will definitely have a competitive advantage in those separate markets.
Nyco America Gets New HQ
Nyco America, an operating subsidiary of French specialty lubricants maker Nyco Group, has established a major new headquarters and an operations platform for manufacturing and warehousing at a site in Newman, Georgia.
We will begin with offices in January, then include warehousing and manufacturing in the first phase of staged investments, said Nyco America CEO James Mustacchio. Our manufacturing plan includes the range of Nyco technology products, such as aviation grease, synthetic aviation turbine oil/fluids and related products. He said the site now encompasses five acres and one building.
The company stated it plans continuing investments at the facility in local production, technical service and warehousing for aviation greases, turbine oils and fluids. The site offers responsive air-ground supply logistics from Atlanta, a core technical staff home base and ready access to Charleston and Savannah ports.
Kyodo Yushi to Build U.S. Plant
Japanese grease maker Kyodo Yushi is planning a $35 million manufacturing facility in the United States with American joint venture partner Lubrication Engineers Inc.
The joint venture, known as Kyodo Yushi Manufacturing Americas LLC, will build a 10,700-square-meter plant near Lubrication Engineers Wichita, Kansas, headquarters, according to the citys office of urban development. Kyodo has a sales office in Rolling Meadows, Illinois, but the Wichita facility will be its first manufacturing location in North America.
Sarlboro Expands in Tianjin
Chinese lubricant blender Sarlboro is in talks with local government officials to construct a second plant in Tianjin, China. The company, which is headquartered in Tianjin, currently has capacity to produce 50,000 tons per year of automotive and industrial lubricants and greases.
The new facility is estimated to cost about $19.3 million, with a capacity of 250,000 t/y. Construction is expected to start in the first half of 2017.
Our current capacity can no longer meet the demand, so we are in need of another facility, said Li Yanguo, Sarlboro general manager. Sarlboro said it needs to accommodate growing sales of its existing products, especially automotive lubes for compressed natural gas vehicles.
India Halts High-Polluting Vehicles
The Indian government will prohibit sales and registration of vehicles that dont meet the requirements of its current Bharat Stage IV emissions standards beyond March 31, as it moves from that set of norms to BS-VI by 2020.
An arm of the Supreme Court of India ordered dealers to discontinue sales of automobiles that emit air pollutants at BS-III levels. The Environment Pollution (Prevention and Control) Authority has also reportedly mandated all state governments to forbid registration of those vehicles after March.
Indias Ministry of Road Transport and Highways announced also that effective April 1, manufacturers of all vehicles will have to provide information about each units air pollution levels and the stage of emissions norms it meets.
Lube additive producer Infineum International noted in a report earlier this month that Indias push to reduce vehicle emissions will present opportunities to supply better lubricants to the market.
SK Pivots to Finished Lubes
SK Lubricants plans to increase emphasis on growing its finished lubricants business through partnerships and new product development.
The Seoul, South Korea-based subsidiary of SK Group said that its main segment, base oils, has been performing well, but noted that the market has become increasingly volatile and plans to increase focus on the more stable finished lubricants marketplace. SK produces more API Group III oils than any other company.
First on SKs agenda is expanding the heavy-duty diesel oil, industrial oil and marine oil product offerings in its portfolio, which is concentrated on passenger car motor oils. The company is also considering mergers and acquisitions in the finished lubricants sector. Although unsuccessful, last year it placed a bid to acquire Royal Dutch Shells majority stake in Chinese blender Tongyi Lubricants.
Total to Blend in Russia
French oil major Total broke ground on its first lubricants blending plant in Russia, a project that could dovetail with the countrys emphasis on localizing production and reducing reliance on imports.
The plant will have initial capacity to produce 40,000 tons per year of finished lubricants, with the ability to increase that number by 35,000 t/y, Total Vostok, the companys Russian subsidiary, stated in a press release.
The facility will be built on a 17-acre plot in Vorsino, Kaluga Oblast, in the center of the European part of Russia. The $50 million plant is expected to be ready by 2018, under an investment agreement signed by Kaluga Gov. Anatoly Artamanov and Total Vostok General Director Fabien Voisin.
Total Vostok said the plant will produce a wide range of automotive and industrial lubricants, including flagship Total brands such as Quartz passenger car motor oils, Rubia heavy-duty vehicle engine oils, and Azoll and Equivis hydraulic oils, as well Seriola and Carter industrial oils and other products.
Gazprom Ships Lubes to Colombia
Gazpromneft Lubricants started to ship its G-Energy and Gazpromneft branded motor oils, transmission fluids, hydraulic fluids and greases to Colombia through exclusive local distributor Petrolubs.
We have a systematic plan to expand our presence in Latin America, realizing our international markets development strategy, Gazpromneft Lubricants General Director Alexandr Trukhan said during an interview. We are trying to apply our successful marketing and export practice to the prospective markets of Latin America. Officials said the company is also considering opening a chain of oil change and automotive maintenance centers in Colombia.
In addition, Petrolubs President Jaime Lafaurie said his company will spend $1.7 million next year to build distribution centers for Gazproms lubricants in four Colombian cities: Bucaramanga, Buenaventura, Medellin and Cali. His company already has facilities in Bogota, Cartagena, Santa Maria and Baranquilla.
ExMo Aviation Lubes Plant at Full Throttle
ExxonMobils Port Allen, Louisiana, aviation lubricants plant is operating at full capacity making the companys Mobil Jet brand engine lubricants.
The aviation lubricants blending, packaging and distribution facility started shipping product worldwide in August after receiving regulatory approvals. The plants lubricant production capacity was not disclosed.
The 90,000 square foot facility is part of a $200 million investment to expand ExxonMobils integrated chemical and lubricants complex in Baton Rouge, which is already one of the largest petrochemical hubs in the world.
Gulf Oil Lubricants India Ltd. will supply genuine motorcycle engine oils for Bajaj Auto, Indias second-largest motorcycle maker, including SAE 10W-30 and 20W-50 Bajaj DTS-i brand oils. The company also said it began structural and pre-engineering work for its Chennai, India, blending plant and that commercial production is expected to be on schedule for the second or third quarter of 2017.
Southern Cross Lubes has been appointed the sole authorized distributor of ExxonMobils Mobil lubricants in New South Wales, Australia. The company already sells Mobil products in Victoria and Tasmania. Exxon also announced the sale of its 60 percent stake of Mobil Oil Nigeria to local oil company Nipco Plc. Nipco will continue to blend and sell Mobil lubricants.
French oil major Total Lubricants opened a 460-metric-ton lubricants warehouse in Suva, Fiji, which it said is one of its largest in the Pacific region.
Brenntag acquired the lubricants business of Tonawanda, New York-based Noco, which supplies lubricants to industries in the northeastern United States and southern Quebec, Canada.
Chevron Belgium N.V. renewed its contract for European distribution with Daresbury, United Kingdom-based base oil and additive distribution company Multisol Group. As part of the extension to 2019, the territories covered will include the Balkan countries of Croatia, Slovenia, Bosnia and Herzegovina, Serbia and Slovakia.
Wayne, Pennsylvania-based Puralube Inc. and its subsidiary in Frankfurt, Germany, will now be known as Puraglobe. Puralube had already been using the name for its joint venture with NexLube Tampa, Puraglobe Florida LLC.
Faces in the News
Acme-Hardesty appointed Jeff Kenton its new president effective November 1. Prior to joining the company, Kenton was president of Brenntag Specialties and previously held global leadership positions with Ashland Specialty Ingredients and Ashland Aqualon Functional Ingredients.
Petronas Lubricants International has made two new appointments for its operations in the Americas. Guilherme de Paula was named CEO of PLI Americas after serving as head of the companys Latin America region. Luiz Sabatino was promoted to CEO of PLI Brazil and Latin America, excluding Argentina, Uruguay and Chile. He was previously head of marketing and strategy for PLI Americas.
Beth Ann Jones, v.p. and general counsel of Mantua, New Jersey-based Hangsterfers Laboratories, was elected president of the Independent Lubricant Manufacturers Association at its October annual meeting in Arizona. Jones, whose sister Leslie Jones is a past ILMA president, took over from Frank H. Hamilton III of South Atlantic Services.
Nynas Valentina Serra-Holm was named president of the Union of the European Lubricants Industry at the organizations congress held in Berlin, Germany, in October. Serra-Holm is marketing and technology director for naphthenics at Nynas, and has served on the UEIL board of directors since 2014.
Hindustan Petroleum named S. Jeyakrishnan director of marketing effective November 1. Prior to this appointment, he was executive director of retail at the Indian oil company.
International Products Corp. named William F. Herbert its new Chief Financial Officer. Herbert has over 20 years of experience in finance and planning, and has worked for Jackson Hewitt Tax Service and Hess Corporation prior to his current role at IPC. z