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Jobbers World Online News Briefs is a service to Subscribers
to the Jobbers World Newsletter.
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The Big Deal in Brazil |
Petrobras, Ultra Group and Braskem Purchase
Ipiranga Group
In what is billed as one of the largest deals ever
done in Brazil, Petrobras, the Ultra Group and
Braskem reached an understanding last week to
purchase Ipiranga. This $4 billion transaction moves
Petrobras into a very commanding lead in the
Brazilian lubricants market.
According to a 2007 market research study on the
global base stock business by Petroleum Trends
International (PTI), prior to this deal Petrobras
was already the leading supplier of Brazil. Its
sales of finished lubricants reached close to 70
million gallons, or 23% of the nearly 300 million
gallons of lubricant consumed in Brazil in 2006.
Although Chevron held a very respectable second
place position with an estimated 17% market share,
the Petrobras deal catapults it far ahead. As the
third leading lubricant supplier in Brazil, Ipiranga
will contribute close to 40 million gallon of
lubricant sales to Petrobras bottom line. Petroleum
Trends International says the result of this deals
means Petrobras will command an estimated 37% market
share in Brazil. Shell now moves into third place
with roughly 10% market share, as shown in Figure 1.
(click Figure for larger view)
To put this deal in further perspective, Petroleum
Trends International’s base stock report shows that
the Brazilian lubricants market represents an
estimated 34.5% of the lubricant consumed in Latin
America. Mexico is the second largest consumer at an
estimated 26% of the regions total. So when you
consider the combined volume of Petrobras and
Ipiranga’s lubricant sales you are looking at
Petrobras enjoying close to 12% of lubricant sales
in Latin America. Now that’s a big deal.
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Pegasus Capital Advisors, L. P. Acquires Universal
Lubricants Inc. |
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Although representatives from both Pegasus Capital
Advisors, L. P. and Universal Lubricants declined to
comment on the details of the deal, the fact is
Universal Lubricants has been acquired by Pegasus
Capital Advisors, a private equity fund manager.
Founded in 1929, Universal Lubricants is a large
independent lubricant manufacturer and distributor
based in Wichita, Kansas. The company operates one
manufacturing facility in Wichita, Kansas and has
distribution centers in Kansas, Missouri, Nebraska
and Texas.
In addition to its own brand of lubricants,
Universal Lubricants, Inc. distributes major branded
lubricating oil for Pennzoil-Quaker State, Shell and
Castrol. The company is also engaged in reprocesses
used oil for sale as an industrial fuel oil.
Pegasus Capital Advisors, L. P. is a private
equity fund manager that focuses on middle market
companies across a wide variety of industries. It's
portfolio does not appear to currently include other
lubricant companies.
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Shell Introduces Shell Mysella XL extended drain gas
engine oil |
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Today’s new generation of stationary gas engines
generally operate at high load and low emissions,
placing increased stress on the lubricating oil.
According to Shell, it's new Mysella XL
extended drain gas engine oil has been
specifically formulated to address these lubrication
challenges and designed to extend oil life while
helping to reduce maintenance costs and increase
engine availability.
Shell says its Mysella XL extended drain gas engine
oil significantly prolongs oil life relative to our
regular drain gas engine oil by resisting oxidation,
viscosity increase and the formation of harmful
acids. In a field trial, the company reports that
Shell Mysella XL gas engine oil also provided up to
a 25% longer oil drain interval, compared to the
leading competitor’s regular drain gas engine oil.
“Maintenance intervals have been increased with the
introduction of improved spark plugs, oil filtration
and tighter control of the oil consumption rate,”
says Dennis Woodley, Product Application Specialist
for Shell Lubricants. “A high performance oil is
required for synchronizing the oil drain interval
with the engine maintenance interval. By using a
high performance engine oil such as Shell Mysella
XL, operators can help to extend maintenance
intervals and minimize costs.”
Mysella XL reportedly helps keep pistons free of
deposits and helps prolong the life of valves, valve
seats and spark plugs. Additionally, Shell Mysella
XL is compatible with engines equipped with emission
catalytic converters and meets the requirements of
Caterpillar and Waukesha regular service.
Shell Mysella XL extended drain gas engine oil
was specially developed to help meet the needs of
maintenance operators who service remote, un-manned
engines (e.g., engines associated with oil and gas
field operations). Extending the maintenance
interval of these engines can help reduce labor,
transportation, and service costs.
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Exciting Changes at Lubrication Engineers |
During their recent Annual Sales Conference in
Las Vegas Lubrication Engineers Inc (L.E.) announced
to their U.S. Sales Force some exciting changes to
their Management team. After five very successful
years as President, Randall L. Kressler announced
his decision to retire with immediate effect and
that his successor as President & CEO would be Scott
Schwindaman. Jeff Turner is promoted to Scott's
previous role as Executive Vice-President. Other
notable promotions include Vincent Tofani as Vice
President Sales, Darren Booth Vice President
Manufacturing & Operations and Patrick Kraus as Vice
President Administration & Treasurer.
Scott Schwindaman has been involved in the
lubricant field for over 28 years. Prior to joining
Lubrication Engineers in 1981 he worked for
Southwest Petro-Chem. He is a graduate of Wichita
State University with a BS in Industrial Technology.
Scott's career to date has been in both
production/operations as well as Research &
Development of new lubricant products.
"Randy has done an outstanding job refocusing our
company & establishing a strong foundation for the
future. L.E.'s new management team is really looking
forward to taking L.E. to the next level as the
world's Lubrication Reliability Source. We have an
excellent global team & strategy -- we aim to
provide the very best service & reliability
solutions to all our valued L.E. customers," said
Scott Schwindaman, President, Lubrication Engineers
Inc.
Randy will continue to serve L.E. on a part time
consultancy basis regarding strategy for future
corporate growth. L.E.'s successful new focus as the
'Lubrication Reliability Source" has
resulted in a range of corporate partnerships with
other Reliability based companies which allow L.E.
Lubrication Consultants to provide customers with a
high level of quality support that is often lacking
from certain lubricant suppliers.
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Ford Pounds the Drum for 5W-20 |
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According to Ford, its switch from 5W-30 to 5W-20
has saved 700 million gallons of gasoline since
2001. The lighter grade reportedly delivers about a
half mile per gallon increase in fuel economy per
vehicle by reducing parasitic load and internal
friction.
Ford says improved emissions is another advantage
5W-20 has over 5W-30. According to Ford, its use of
5W-20 has reduced carbon dioxide emissions by about
one million metric tons a year. This is roughly
equivalent to taking 180,000 cars off the road.
As a side bar, its it's interesting to note
during Jobbers World's recently store checks it
observed Ford's Motorcraft conventional and
synthetic blend engine oil is priced the same at one
of the leading autoparts chains. In both cases the
products were priced at $2.59 a quart. Although this
could be anomaly, it could also be a strategy that
takes a page out of ConocoPhillips book. As readers
may recall, ConocoPhillips made a splash last year
when it announced it was offering synthetic blend
PCEO at conventional engine oil prices.
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STLE Announces Extensive Gear Program for
Philadelphia meeting |
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STLE announced today that this year's STLE Annual
Meeting & Exhibition in downtown Philadelphia,
Pennsylvania offers a host of programs for those
interested in gears, gear systems and gear
lubrication, including:
- Sixteen technical papers covering such issues as
surface treatments and their effects for gears,
modifications of gear tooth tip design, additive
response and gear oil formulation, as well as more
theoretical papers on EHL modeling of gear contact
and vapor-mist lubrication.
- Panel discussion: "Understanding Modern Gear
Design & Lubrication Technology and Challenges." The
panelists clearly are the thought leaders in the
field. Hong Gao, ConocoPhillips, moderates the
discussion. Panelists include Harold Chambers, Ford
Motor Co.; Diann Hua, Caterpillar Inc.; Dave Degonia
and Tze-Chi Jao, Afton Chemical; Jen-Lung Wang,
RohMax USA; and Corey Phillips, ConnocoPhillips.
- The Basic Lubrication 102 course includes a
segment on gears and their lubrication taught by
John Hermann, ExxonMobil
- More than 70 exhibitors are showcasing their
products and services, including the latest in gear
lubricants, gear lubricant additives and gear
testing procedures and equipment.
The conference date and location is May 6-10 at the
downtown Philadelphia Marriott in Philadelphia,
Pennsylvania.
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Chemtool - Big and Getting Bigger |
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Chemtool Inc., one of the largest independent
manufacturers and custom formulators of lubricants
and specialty products for industry worldwide,
signed a lease last week to occupy nearly 140,000
square feet of a 1.3 million square foot warehouse
space in Harvard Illinois. Prior to this expansion,
in 2004 Chemtool purchased a 60,000 square foot
facility in Elkorn Wisconsin. It also added capacity
in 1997 with a facility in Milan Michigan and in
1998 with a new manufacturing facility in Tehachapi
California.
Chemtool has also made two acquisitions in the
last 10 years. It acquired Barrington Chemical in
1992. Barrington, based in Brighton Michigan,
manufactured specialty cleaners and conversion
coatings. That same year Chemtool also acquired
Metalcote. Metalcote was a well recognized leader in
specialty greases.
Chemtool is a privately held corporation founded
in l963, and it’s a company clearly on the move. In
addition to its business activity in the US,
Chemtool also has a distribution facility in Diegem,
Belgium where it ships to locations throughout
Europe, Africa and the Middle East.
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Chevron Introduces Delo Synthetic Gear oil |
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Chevron announced that it will add a new product to
its lubricants lineup next month when it launches
Delo Synthetic Gear Lubricant SAE 75W-90. According
to Chevron, the new product meets all OEM warranty
requirements and is suitable for use in rear axles
and differentials for fleets in the commercial
transportation and construction markets.
It is important to note that Delo Synthetic Gear
Lubricant SAE 75W-90 also meets SHAES 256 Rev C.
This is a new specification for Dana Spicer axles
which will go into affect April 1, 2007. This new
specification requires performance testing at -40º C
and is designed to improve both low and
high-temperature performance of gear oil.
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