As soaring markets are expected in North America and Europe for transmission fluids used in mining and construction equipment, the specifications for these oils are emphasizing excellent wear protection and rigid friction properties, an industry event heard recently.
Mining and construction equipment is characterized by great diversity, and is produced by multiple OEMs, said Alexandre Gendron, product line specialist at Chevron Oronite, during RPIs Lubricants Russia conference in Moscow in November. Five of the 10 largest construction equipment makers in the world are European and American; the other five are Asian.
Asia-Pacific consumed 375 million liters of [mining and construction equipment transmission] fluids in 2014. They were followed by North America with 349 million liters consumed in the same year, Gendron said. Africa and Europe used similar volumes of around 100 million liters each, while Latin American demand for TO-4 type oils amounted to 40 million liters.
In Asia-Pacific, key markets for construction and mining machinery are China, India, Japan, Australia and Indonesia. In North America, those countries include Canada, the United States and Mexico, according to data cited by Gendron from the consultancy Kline & Co. Key market driver countries in Europe are Germany, France, Italy and the United Kingdom, as well as Russia, Spain, Poland and Turkey. In Latin America, Brazil and Chile are key, and South Africa dominates its continent.
The uncontested global leaders in construction and mining equipment production are U.S.-based Caterpillar and Komatsu of Japan. In 2014, they held 18 and 11 percent of the market, respectively, according to International Constructions 2015 Yellow Table, cited by Gendron. Many other smaller players, such as German Liebherr, American John Deere, Japanese Hitachi, as well as Chinese XCMG and Swedish Volvo, each held around 4 percent of the market. Two more OEMs, Chinese Sany and Korean Doosan, each held a 3 percent share. Diverse other manufacturers account for the remaining 38 percent.
The two dominant OEMs have largely set the standards for transmission lubricants in the construction industry. In Asia, the benchmark specifications for lubricants for this type of equipment are developed by the Komatsu and Caterpillar OEMs, said Gendron, who is based in France. In North America, the specification setter is Caterpillar only, while in Europe Caterpillar is joined by ZF, a German maker of driveline, transmission and steering systems.
Another key specification is Allison Transmissions TES 439. Indianapolis-based Allison, once part of General Motors but publicly traded since 2012, is a large manufacturer of medium- and heavy-duty fully automatic transmissions and hybrid propulsion systems.
TO-4, Caterpillars current benchmark specification, lays out performance requirements for hydraulic and transmission oil to be used in the manufacturers off-road equipment. Komatsus transmission oil specification is KES 07.868.1, and ZFs standard is 03C/07F.
Chevron Oronite found that the top 30 percent share of global finished oils in construction and mining equipment is supplied by either OEMs or lubricant marketers, and often are made with API Group II and III base oils. The main-tier segment occupies a 50 percent market share and is set by the TO-4 or ZF 03C/07F specifications. The rest, or 20 percent market share, are entry-tier lubricants [meeting] TO-4 and TO-2 specs, produced with the use of Group I base oils only, Gendron said.
Construction and mining equipment transmission oils and fluids performance is strongly influenced by Caterpillars TO-4 standard. However, Oronite indicated that not all TO-4 type fluids are equal, especially when it comes to the key performance parameter: friction.
Oronite conducted a performance evaluation of various technologies on the market using the ASTM D4998 test method, and concluded that SAE 10W oils need to deliver excellent wear protection. ASTM D4998 (Wear Characteristics of Tractor Hydraulic Fluids) uses a modified FZG test machine to measure gear-set weight loss. TO-4 specifies a maximum of 150mg wear in one run in this demanding, 24-hour test, and an average of 100mg in three runs. Gendron showed that Oronites additive technology met these wear limits by a wide margin.
Furthermore, Gendron said, Oronite technology excels in TO-4s oxidation requirements, including sludge control. It is visible in tests such as yellow metal protection at 100 and 130 degrees Celsius, and the oxidation test with protection against varnish and deposits.
A comparative analysis of Allison TES 439, Komatsu TO30 and Cat TO-4 fluids in graphite friction tests showed that the latter two have a higher midpoint coefficient of friction than the TES 439. Uncompromised friction is critical for TO-4 [type oil] performance, Gendron declared.
The additive maker also found that use of engine oils in off-road equipment transmissions is a concern and advises looking at the experience of other OEMs. It may have been allowed in the past, but today Caterpillar does not recommend using engine oils in mining and construction equipment transmissions. The transmission oil specification is TO-4, Gendron said. A compromise on friction performance could lead to field issues such as reduced transmission life or reduced brake efficiency. Komatsu likewise does not recommend engine oils, and urges use of fluids meeting its KES 07.868.1 specification.
While Allisons TES 439 oil does not overlap with Caterpillars TO-4, Allison C4 transmission fluid and Caterpillar TO-4 overlap to some extent. In a comparative evaluation, when TES 439 oils were applied in the Caterpillar machinery and equipment, operators reported clutch slippage and overheating, according to Oronite. On the other hand, if TO-4 type fluid is applied in Allison transmissions, there are no consequences for reliability, except that operators reported feelings of potential concern and shift shock, Gendron said.
In this market, the outlook for fluid sales depends on economic activity and equipment sales, of course. Gendron pointed out that while American sales have experienced healthy recovery in the aftermath of the global recession in 2009, wider sales of construction equipment have seen volatility in the past couple of years.
In North America, [equipment] sales skyrocketed to around U.S. $180 billion in revenues in 2010. They gradually declined to around $100 billion in 2014, showing signs of return to pre-crisis levels, which were around $130 billion before 2009, Gendron reported. In 2014, North American construction and mining equipment sales saw 25 percent growth compared to the year before, according to the Yellow Table. Similar recovery, albeit at a slower pace, has also been seen in the European market, where sales rose 9 percent in the same year.
On the other hand, Chinese sales plunged due to the countrys slowing economy in the last couple of years. Chinese construction equipment sales dropped 25 percent in 2014 compared to the year before. These sales depend on the immediate economic activity, Gendron explained.