Lubes Greases

September 2014

EUROPE MIDDLE EAST AFRICA Number 63

Growing Appetite for Synthetic Base Oils Next Steps for ACEA 2014

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PUBLISHER’S LETTER

13,681 Qualified Subscribers!

EUROPE-MIDDLE EAST-AFRICA LNG Publishing Co., Inc. 7389 Lee Highway, Suite 300 Falls Church, VA 22042 U.S.A Phone: +1 703-536-0800 Fax: +1 703-536-0803 Web: www.LNGemea.com www.LubesnGreases.com Email: info@LubesnGreases.com

Powerful Circulation Growth

Who Reads EMEA?

Lubes’n’Greases Europe-Middle East-Africa’s Audited, Qualified Circulation 13,681

14,000 12,000

11,252

10,000

11,885

9,795

8,289

Lube Manufacturers, Marketers, Packagers 53% Others Allied to the Field 18% Additive Suppliers 12% End Users of Lubes & Greases 10% Base Oil Suppliers 7%

8,000 6,000 4,000 2,000

Where Are They?

14 M

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13

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ay

20

12 M

ay

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Director of audience development Sheryl Unangst has just shared our latest numbers, and the growth in our independently audited circulation is pretty amazing. According to our June 2014 brand report from auditors BPA Worldwide, 13,681 qualified industry executives subscribed to the May issue of the magazine you’re reading.

Circulation has more than doubled since 2008, and it shows no sign of leveling off, as more and more players in Europe, Middle East and Africa turn first to Lubes’n’Greases for industry news, trends and informed opinions.

If the EMEA lubricants industry is your market, I invite you to consider advertising. We offer you the only audited circulation in the industry, so you’re assured that your message is reaching your target market. Our ad team would love to tell you more; drop a note right now to Gloria Steinberg Briskin at gloria@LubesnGreases.com.

Managing Editor Dick Beercheck has put together a terrific issue this month, with features about ACEA

2014, Eastern European blenders’ challenges, the grease markets in Africa and Middle East, synthetic lubes and much more. Enjoy!

Richard Beercheck Managing Editor Ricardo Lianez Art Director Sheryl Unangst Director of Audience Development Robert Green Circulation Assistant Manager Boris Kamchev, George Gill, Joe Beeton, David Wedlock, Kunal Mahajan, Mark Townsend, Emeka Umejei Contributors

— Nancy J. DeMarco nancy@LubesnGreases.com

Nancy J. DeMarco Publisher Gloria Steinberg Briskin Managing Director & Vice President, Advertising Phone: +1 703-536-7676 gloria@LubesnGreases.com Megan Matchett Advertising Account Manager megan@LubesnGreases.com Laura Hughes Advertising Production Supervisor Lubes’n’Greases Europe-Middle EastAfrica (ISSN1935-8490) is an independent trade magazine, published monthly.

Europe 49% Rest of World 32% Africa 10% Middle East 9%

Subscriptions to the print edition are free to qualified subscribers in Europe, the Middle East and Africa who are active in the lubricants industry as manufacturers, marketers, volume buyers and users, or as key suppliers.

Qualification is subject to publisher’s approval.

Subscriptions to the print edition outside Europe, the Middle East and Africa are U.S. $120 for 12 issues; U.S. $225 for 24 issues. Subscriptions to the digital edition are free to qualified subscribers worldwide.

Lubes’n’Greases Europe-Middle East-Africa is a registered trademark of LNG Publishing Co., Inc. Printed in the United Kingdom.

Copyright 2014, LNG Publishing Co., Inc.

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

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September 2014

EUROPE MIDDLE EAST AFRICA 14

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Number 63

FEATURES

TABLE OF CONTENTS

14 Nigerian Auto Policy Finally Gets Green Light The Nigeria automotive policy, first launched in 1993, never got the political backing it needed to be fully implemented. But the government recently approved a new policy to encourage local vehicle production.

22 The Next Steps for ACEA 2014 ACEA 2014 is coming, with widely anticipated revisions for performance in the presence of biofuels. It’s time to get prepared.

28 Decoding the Burgeoning Grease Market The grease market is grappling with two opposing trends. Demand is increasing because of industrial and vehicle growth in developing countries, but it is decreasing due to a shift to superior grades that provide longer life.

36 Growing Appetite for Synthetic Lubes Synthetic lubricant demand is expected to grow more than 3 percent per year in Europe and by more than 4 percent per year in Africa and the Middle East from 2013 to 2023.

46 Spotlight on Ukraine, Turkey & Romania Economic and political turmoil in Ukraine, Turkey and Romania could force the region’s small to mid-size blenders to look elsewhere for new opportunities.

DEPARTMENTS

4

3

Publisher’s Letter

52

Newsmakers

6

Base Oil Report

56

Industry Calendar

10

Marketing Matters

58

Last Word

48

Advertisers Index

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BASE OIL REPORT

BY DAVID WEDLOCK

Low-Temperature Performance of Base Oils – Timing Is of the Essence

T

6

structures. Hence, high viscosity index base oils have good cold crank performance. Although they may have waxy characteristics, there is no time for wax structures to form and increase viscosity. The VI of the base oil will provide a reasonable handle on cold crank performance, but indicates virtually nothing about pumpability performance.

Pumpability, the ability of a lubricant to find its way to the oil pump inlet, is controlled by any soft/solid structure.

This property is measured as high viscosity or yield stress from precipitated residual waxes that may have aggregated after a lubricant is left in a cold environment for a long period.

Molecules with waxy characteristics have inherently high VI. This leads to the paradox that high or even very high VI base oils, especially if solvent dewaxed, can have limited pumpability performance. Perhaps the main

exception to this paradox is found with PAOs, which do not have residual waxes as such because of their unique synthesis and structural characteristics.

The concept that wax crystallization is both viscosity and time dependent is important when it comes to developing and understanding industry standard tests for lubricants.

Therefore, slow cooling times are specified in test methods where it is important to know about time dependency of residual wax crystallization and thickening of lubricants. These tests probe a lubricant’s ability to remain homogenous and maintain a low viscosity when left in cold environments for extended times. Examples are the Brookfield viscosity test for automatic transmission fluids that specifies a cooling time of about 16 hours and the mini rotary viscosity pumpabilContinued on page 8

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Photo © akulamatiau/Fotolia

he low-temperature performance of a finished lubricant is largely determined by the inherent lowtemperature properties of the base oil, although performance can be tweaked with additives such as pour point depressants (PPDs) or viscosity modifiers.

The major part of the low-temperature performance window is set when the base oil is manufactured.

For paraffinic base oils, with the exception being polyalphaolefins, a dewaxing step is used. However, this does not mean a finished base oil is free of wax or waxy molecules; after all, they determine the pour point.

For crankcase fluids, suppliers generally try to meet the viscometric requirements of SAE-J 300 for cold crank viscosity and low-temperature pumpability. Cold crank and pumpability performance have different responses to the chemical composition of the base oil. Being quite different phenomena, they need different test methods and viscometer types to measure them.

Cold crank viscosity is an indicator of the ability to turn over or crank the engine, and is measured after quite rapid (minutes) cooling of the lubricant. Because wax crystallization from the base oil is strongly dependent on time and viscosity, cold crank measurements allow no time for wax crystals to precipitate and agglomerate into

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BASE OIL REPORT Continued from page 6

ity test with a cooling time of about 48 hours, which is part of the SAE J-300 crankcase fluid requirements.

Pour point is a low-temperature parameter that is often quoted, easy to measure and useful for determining whether a base oil is likely to solidify. It is not, however, part of SAE J-300.

Pour point in lubricants can be

modified by judicious use of a PPD. The first order response of base oil to PPD is determined by whether the oil is catalytically or solvent dewaxed. Catalytically dewaxed base oils usually have far better response to PPDs than solvent dewaxed base oils.

This is mainly because most residual waxes in catalytically dewaxed oils undergo some degree of isomerization

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or cracking.

In solvent dewaxed base oils, the residual waxes – those precipitating at the natural pour point – have the same unimproved wax characteristics as the crude from which they were derived.

As a result, solvent dewaxed oils generally respond in a poorer manner to PPDs, which sometimes can be offset with higher dosing.

Because the process of wax crystal formation is strongly viscosity and time dependent, some highly viscous base oils such as bright stocks when cooled become too viscous too quickly for wax crystals to initiate and grow.

Therefore, as temperature is lowered, bright stocks reach an ultrahigh viscosity that a pour point apparatus interprets as a pour point. However, it is not because no wax assemblies have formed and is called a viscosity pour point.

Wax eventually crystallizes out as temperature drops because the base oil solution becomes so saturated with residual wax, becomes cloudy and forms wax assemblies. In this special case, cloud point and pour point are inverted compared to conventional distillate base oil behavior where cloud point is normally above the pour point.

So the low-temperature performance of base oil is not simply a matter of “High VI is best.” Rather, it’s all in the timing! o

DAVID WEDLOCK retired from Shell Lubricants after more than 10 years as global technology manager for finished lubricants and base oils. Before that he worked in R&D for Shell Additives International. He is now an independent consultant.

He can be contacted at david.wedlock@live.co.uk

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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MARKETING MATTERS

BY KUNAL MAHAJAN

Future Cylinder Oils to Come in Multiple Base Numbers

Global Marine Lubricant Demand, 2013

T

he marine lubricants industry is undergoing major adjustments as it adapts to changes in the shipping industry. New emission regulations coming into effect will spur modifications over the next 5 to 10 years, impacting the type of fuels consumed, engine technology and emission control devices. As a result, the market is expected to continue its shift toward the use of multiple cylinder oils with a range of base numbers (an indication of an oil’s ability to neutralize acids), tailored to meet the needs of specific applications.

The global marine lubricants industry is dominated by oil and gas majors and is governed by global supply contracts between lubricant suppliers and shipping companies. Shipping companies primarily involved in sea trade are the major customers for lubricants, accounting for almost 90 percent of total lubricant demand.

Kline & Co. estimates global marine lubricant demand in 2013 at 2.1 million tons, which is almost the same as 2012 demand. Asia, with a 53 percent share, is the largest consuming region, followed by Europe (including Western and Eastern Europe, Russia and Turkey) with 22 percent and North America with 17 percent. The overall market is not expected to grow much; however, Asian demand is expected to rise because expanding economies in

10

Total 2.1 million tons (estimated)

Asia 53% Europe 22% North America 17% Other regions 8%

Source: Kline & Co.

the region will increase their seaborne trade, leading to higher lubricant consumption.

Slow steaming has become a standard operating practice in the shipping industry and is expected to continue in the future because it helps companies reduce fuel cost. However, it adversely affects the overall demand for marine lubricants while at the same time increasing the demand for lubricants with higher base number.

The biggest shift in the marine lubricants industry is expected to be a move away from one universal cylinder oil to cylinder oils with different base numbers for specific applications.

These shifts will be more pronounced in emission control areas (ECAs) around Europe and the United States.

In ECAs, allowable fuel sulfur content will drop to 0.1 percent in January 2015. Shipping companies can adopt

any of three strategies to meet the sulfur emission norms – low sulfur fuels, alternative fuels like liquefied natural gas and scrubbers – and that will determine the direction of the marine lubricants industry in this regard.

In the immediate future, low-sulfur fuels seem to be the only option due to challenges with the other alternatives. Consequently, the demand for low base number (15–20) lubricants in ECAs will increase. The formation of the Trident Alliance, aimed at improving the compliance to sulfur norms, will also aid in expanding the market for low base number lubricants, mainly in the European ECA. However, when the new global sulfur requirements come into effect in either 2020 or 2025, the supply of low-sulfur fuels in sufficient quantities could become an issue, increasing the Continued on page 12

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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use of scrubbers and LNG. In such a scenario, shipping companies will choose from among the three strategies, or a combination, depending on cost-effectiveness.

Kline expects older ships to opt for scrubbers and new builds to opt for a combination of scrubbers and dual-fuel engines that can use both LNG and fuel oil.

Dual-fuel ships can use LNG in the Middle East, where it is readily available, and fuel oil along with scrubbers in Europe to meet emission norms.

Increased use of scrubbers will push the market toward mid-base-number (50-70) lubricants, and the use of LNG will require lubricants compatible with it.

This means lubricant suppliers will have to stock these lubricants at various ports, thereby increasing logistical challenges.

At the same time, cold corrosion has become a major problem for engines designed to meet Tier II nitrogen oxide emission norms that have led to the emergence of super-high-base number (100 BN) cylinder oil. Operating temperatures of the cylinder in engines designed to meet these norms have dropped significantly, which could result in sulfuric acid deposits on liner walls. Neutralizing the acid requires 100 BN oil.

Cold corrosion is also caused by slow steaming, which helps reduce fuel consumption. Going forward, this mode of operation is expected to become standard,

12 AnzMogOil2013.indd 1

increasing the demand for 100 BN cylinder oils.

Emission norms stipulated by the shipping industry have had a substantial impact on the marine lubricants industry in the past. Therefore, the expectation is that the norms to be implemented over the next few years will play a major role in shaping the direction of the marine lubricants industry in the future.

New emission norms are expected to move the marine lubricants industry further toward applicationspecific cylinder oils. Kline expects the market to offer oils in three base number ranges: low BN (15–20), mid BN (50–70) and high BN (80–100). The use of LNG is also expected to increase in the future; therefore, lubricants compatible with it will also be needed.

The global demand for marine lubricants bottomed out in 2013 and will start to rebound in 2014. Demand growth between 2016 and 2018 will be slower as the industry deals with the effects of increased slow steaming, the introduction of bigger and more efficient ships, scrapping of old and inefficient ships and alliances among shipping companies to optimize operations.

Beyond 2018, growth will be strongly driven by growth in trade. o

Kunal Mahajan is Project Manager, Chemicals & Energy at Kline & Co. and can be reached at Kunal_ Mahajan@klinegroup.com.

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA 21.12.12 08:30

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NIGERIA’S AUTO POLICY GETS THE GREEN LIGHT ­­— FINALLY

14

Nigerian Engine Oils by Grade

N550 billion (U.S. $3.5 billion) were imported into Nigeria in 2012. In its outline of the Nigerian Automotive Industry Development Plan, the NAC emphasized that the new auto policy will produce an automotive industry that will “create significant, good quality employment and a wide range of technologically advanced manufacturing opportunities. This industrial base can then form the foundation of other modern, advanced manufacturing activities.”

Photo © Kent0344/Dreamstime

Nigeria’s Auto Industry The Nigerian auto industry started domestic production of vehicles in the late 1970s in partnerships with foreign companies. Between 1970 and 1980, six assembly plants were built, including two dedicated to cars and four to trucks. The plants consist of Peugeot Automobile Nigeria Ltd. (PAN) in Kaduna; Volkswagen of Nigeria Ltd. (VWON) in Lagos; Anambra Motor Manufacturing Ltd. (Anammco) in Emene, Enugu; Steyr Nigeria Ltd. in Bauchi; National Truck Manufacturers (NTM) in Kano for Fiat trucks; and Leyland Nigeria Ltd. in Ibadan.

“These plants produced 328,000 vehicles per year, but the auto industry witnessed a decline in the aftermath of the collapse of the Nigerian economy,” Arthur Madueke, executive director of the Nigerian Auto Manufacturers Association told Lubes’n’Greases at NAC’s office in Abuja. However, with the introduction of the new auto policy, the Nigerian auto sector is being rejuvenated, attracting more than

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

100 90 80 Volume (%)

T

he Nigeria automotive policy was first launched in 1993, and the National Automotive Council (NAC) was established to implement it. However, the policy was not fully implemented for more than two decades due to a lack of political will to give it the needed strength. But in October 2013, the Federal Executive Council of Nigeria approved a new National Automobile Policy to encourage local production of vehicles in the country.

“The executive council also stipulated that the government should direct that all vehicles purchased by the government should be from local assembly plants unless they are specialized vehicles and the National Automotive Council has certified that they are not produced in Nigeria,” Labaran Maku, Nigeria’s minister of information and national orientation told local media. “The council approved that the recommendation should be backed by appropriate legislation to give assurances to investors that there will be no abrupt change in policy”.

According to a document issued by the NAC in Abuja, “Measures to Transform the Nigerian Automotive Industry and Attract Investment into the Sector,” Nigeria holds enormous potential for the auto industry. It is the seventh most populous country in the world with a growing middle class of 38 million people and a potential vehicle market of one million vehicles.

According to NAC statistics, about 400,000 vehicles (100,000 new and 300,000 used) valued at over

0.3%

0.4%

31.4%

70

65.7%

60 50 40 30

68.3%

20

33.9%

10 0

2012

2022

Synthetic Multigrade Monograde Source: Frost & Sullivan

19 automakers that are fine-tuning a roll out in the country. According to Madueke, the Nigerian auto industry presently “produces 70,000 vehicles in a single shift, at below 10 percent capacity, at about six or seven auto plants. We have 19 auto plants coming on stream, and we can produce more than five million vehicles per year,” he added.

Protective Tariff The new auto policy has also spurred a new tariff system for automobiles to protect local auto plants.

According to a two-page document, dated 14 November 2013 and signed by the Nigerian Minister of Finance and Coordinating Minister for the Economy, a fully built imported car would incur a duty of 35 percent and an additional levy of 35 percent of the cost of the vehicle. This 70 Continued on page 18 15

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percent duty makes it very challenging to import new cars into Nigeria.

Under the old system, new cars carried a duty of 20 percent and an additional levy of 2 percent; 10 percent was levied on commercial vehicles. The new tariff system takes effect 1 July 2014.

Olusegun Aganga, Nigeria’s minister of trade and investment clarified the tariff situation at the recent Trade and Investment Framework Agreement meeting with United States investors and the State Department Trade Representative in Washington.

“When you bring complete knock downs (CKDs) [all the separate parts needed to assemble a car] into the country, it is at zero percent duty. When you bring in semi-knock downs (SKDs), it is at five percent duty. When you bring in SKD2s [a more complete assembly], it is at 10

“I have been greatly encouraged by the announcements from reputable and global original equipment manufacturers that they are going to establish their automotive assembly plants in Nigeria,” — OLUSEGUN AGANGA

MINISTER OF TRADE AND INVESTMENT percent duty. Companies that assemble cars in the country can import cars of the same make. For every car they produce, they can bring in two new cars at 35 percent duty. Only those not in the auto program will be assessed a 70 percent duty.”

OEMs Jump on the Offer “I have been greatly encouraged by the announcements from repu-

table and global original equipment manufacturers that they are going to establish their automotive assembly plants in Nigeria,” Minister Aganga said in an interview with local media.

“So far, we have been pleasantly surprised by the positive response from local and international investors who are already taking advantage or have signified their interest in leveraging the huge opportunities provided

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SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

by the new automotive policy.”

OEMs such as Hyundai, Kia, Renault, Jiangsu, Foton, Joylong, Higer and Toyota are expected to commence production soon. “By the end of the year, 12 auto manufacturing companies are expected to have established their vehicle assembly plants in the country,” Aminu Jalal, NAC director general told local media.

Renault-Nissan has taken the lead among automakers with the roll out of a Nissan Patrol from its Lagos assembly plant. “We are grateful to the Nigerian government for implementing automotive legislation that is conducive to investment and that was instrumental in our decision to open an assembly plant in partnership with the Stallion Group, already our exclusive distributor in Nigeria,” Nissan South Africa Managing Director, Mike Whitfield said.

Auto Producers in Nigeria Company

Location

Peugeot Automobile Nigeria (PAN)

Kaduna

National Trucks Manufacturers Ltd. (NTM)

Kano

Steyr Nigeria Ltd.

Bauchi

Anammco

Enugu

Innoson Vehicle Manufacturing Co.

Nnewi

Zahav Automobile

Lagos

Leyland

Ibadan

VON Automobile

Lagos

Leventis

Lagos

Iron Products Industries Ltd.

Lagos

Gorgeous Metals Ltd.

Kaduna

Autobahn Techniques

Lagos

Proforce Ltd. (armored vehicles)

Ode Remo, Ogun State

Lasbag

Akure, Ondo State

Source: Nigerian Auto Manufacturers Association

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NAMA’s Madueke told Lubes’n’Greases that some NAMA members are already producing vehicles in Nigeria (See the table), and Nissan recently rolled out its first batch of Nigerian made cars in Lagos.

Innocent Chukwuma, chairman of Innoson Vehicles Manufacturing Co. Ltd., said the new auto policy will

energize Nigeria’s industrialization.

Ibrahim Boyi, managing director of PAN Ltd. agrees that the “new auto policy, if fully implemented, will bring back the glory of the good old years of automotive assembly in Nigeria.”

Impact on Lubricants Madueke, who noted that a vehicle

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comprises 2,000 parts, said this expansion implies that new auto plants will generate about 2,000 new factories, and the lubricant sector is one industry that will gain from a viable auto industry in Nigeria.

Emeka Obidike, executive secretary of Lupan agreed. “The auto policy will have a positive effect on indigenous lubricant manufacturers. It is expected that there will be a boost in business relationships between auto manufacturers in the country and Lupan members that will lead to increased capacity utilization,” he said.

As an added benefit, Luqman Mamudu, NAC’s director of policy and planning, noted, “The country’s robust petrochemical industry represents an opportunity to make automotive plastics and composite materials that have gained increased application in automotive manufacturing.”

In his presentation at the 2013 ICIS Base Oil & Lubricants Conference in Cape Town, South Africa, Mehrdad Vajedi, director of Permian Energy, said, “Nigeria’s ambitious target to produce two million cars locally is a major boost for higher grade lubes.” And Olaniyi Okedairo of the Velvet Hill Nigeria Ltd. consultancy agreed that the new auto policy will have a significant impact on the kind of lubes that will be consumed by Nigerians. “Mostly, what we have in Nigeria is mineral oil, but most of these newer engines require higher quality, tending toward synthetics. It definitely means there is going to be a shift,” he said. “It also means that the kind of base oils that will be coming into Nigeria will improve from API Group I to Group II/III to improve oil viscosity.”

John Erinne, CEO of Matrix PetroChem, a Lagos-based petrochemical concern, concurred, “If the new auto policy eventually comes into force, it

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Nigerian Lubes Market to Grow Significantly 900,000 800,000 700,000 Volume (metric tons)

will help accelerate the shift toward high-quality lubricants. However,” he added, “it is going to be a gradual shift. I don’t expect to see a drastic impact.”

Okedairo also said the new auto policy will drive a shift toward the consumption of synthetic lubes in Nigeria. “The use of synthetics has started already in Nigeria, and there is going to be an upward trend in their use,” he said. Erinne countered that it could elicit a marginal increase in the consumption of synthetics, but there will be greater demand for other high-end mineral oil lubricants.

However, Okedairo said that oil marketers need to embark on an education program because many end-users lack knowledge about lubricants. “When some people buy a new car, they lack knowledge about the kind of lubes to use, even when the manufacturer gives specific direc-

249,634

600,000 500,000

Industrial

400,000

Automotive

300,000 200,000 100,000 0

82,482

555,657

192,137 2012

2022

Source: Frost & Sullivan

tions to use a certain oil. Then, when they go to garages, the technicians manipulate them.” He emphasized that Lupan members will “certainly

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

do everything possible to improve the quality of products to maximize the opportunities that the auto policy presents.” o

21

ACEA 2014: NEXT

STEPS

Editor’s Note: Recent news from the industry indicates that the update to the ACEA sequences may be delayed until sometime in 2015. However, for purposes of this discussion, we will continue to refer to the update as ACEA 2014.

BY DAVID LANCASTER 22

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

P

rotection, fuel economy and emissions have long have been drivers of change in the oil and lubricants industry, and for good reason. Clean, efficient engines are the way of the future, and clean, efficient, long-lasting automobiles are not possible without state-of-the-art lubricants.

This is in part what makes the ACEA oil sequences, updated about every two years, a key component of the automotive industry throughout the world. In 1996, the European Automobile Manufacturers Association (ACEA), representing 15 car, van, truck and bus manufacturers, began to develop the oil sequences as we know them today. The focus was on three enduring strategies: fuel economy, emissions regulations and engine and hardware durability.

Beginning with the classification of passenger car engine oils, under the prefixes A and B, and heavy-duty commercial vehicles under the E classification, the sequences were originally intended as a common voice among manufacturers in Europe, rather than each providing their own specifications. Revisions to the oil sequences introduced by ACEA have one underlying thrust; that is, to provide sufficient protection for vehicles produced by member companies in the face of change and innovation.

ACEA 2014 is coming, with widely anticipated revisions for performance in the presence of biofuels – an increasingly common concern for today’s vehicles. It’s time to get prepared.

First, Some History The ACEA oil sequences have grown LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

more complex as automobile technology has progressed toward greater fuel efficiency and other engine advancements. They now have global ramifications because emerging markets like China, India and Southeast Asia, where European-made vehicles are increasingly being exported, have become reliant on the ACEA oil sequences.

Fundamental drivers of change in the industry are European emissions standards, most recently Euro VI for commercial vehicles, which sets the acceptable standard for emissions for new vehicles produced in Europe. Euro VI requires that all new vehicles be fitted with aftertreatment devices to filter out harmful soot particulates formed by incomplete diesel fuel combustion. These new devices, in turn, have necessitated new considerations for lubricants and additives.

Developed in conjunction with the Additive Technical Committee (ATC) and ATIEL, an organization representing lubricant manufacturers, the ACEA oil sequences help guide industry thinking and development. And with good reason: Well-engineered lubricant additives provide many socioeconomic benefits like reduced pollution, lower fuel consumption and less maintenance for the cars on the road today. As automotive design has evolved to provide better performance, the 23

Visualizing the ACEA C Categories

ACEA C3

ACEA C4

High HTHS (>3.5 cP)

ACEA C2

ACEA C1

Low HTHS (<3.5 cP)

Mid SAPS

Low SAPS

ACEA oil sequences have helped ensure that lubricants are up to the demands of today’s high-performing engines.

Many changes to the ACEA oil sequences are evolutionary, rather than revolutionary, with one exception. The 2004 sequence dropped the A2 and B2 categories because they were deemed unsuitable for current and future passenger car engines, and added the C sequences. C sequences are catalyst-compatible oils, commonly called low-SAPS (sulfated ash, phosphorus, sulfur) oils, designed for the increasing number of vehicles fitted with aftertreatment devices.

All of this makes it extremely important for additives professionals to stay abreast of the latest changes to ACEA. Technology accelerates at lightning speed, and it is vital to understand what is on the horizon for future oil sequences to best serve customer’s needs.

ACEA 2014 Industry experts widely anticipate ACEA 2014 to concentrate heavily on biodiesel and other alternative fuels. Indeed, the wider use of biofuels by an increasing number of cars, driven by legislation and environmental concerns, will have an impact not only on ACEA 2014, but also well into the future. The 24

The ACEA C category already comprises four classes of lubricants to cover low- and highHTHS viscosity as well as low- and mid-SAPS oils, as shown in the matrix. The drive for fuel economy raises the potential of introducing a new category to cover even lower HTHS viscosity. This would greatly increase product line complexity for both marketers and end-users.

majority of proposed revisions focus on passenger and light-duty diesel requirements, in areas such as piston cleanliness, sludge control, engine wear protection and oil oxidation.

For end users, these requirements will translate to more efficient engine operation and potentially better fuel economy. For oil marketers and OEMs, it means a lot of hard work and innovation in the years to come.

To meet the exacting requirements of ACEA 2014, additive companies will have to run updated tests due to the extra demands these types of fuels place on a vehicle. Oils contaminated with biodiesel tend to thicken at low temperatures, which can lead to engine failure in extreme cases.

Biodiesel fuel was also a major focus of ACEA 2012, with the introduction of the CEC L-104 biodiesel compatibility test and the CEC L-105 low-temperature pumpability test on used oils. Changes in 2014 are expected to particularly impact performance requirements in the A, B and C classes.

A new category is expected to be added to the C classes, requiring enhanced fuel economy improvement from engine oils for gasoline and light-duty diesel engines with after-treatment systems. An increased focus on the reduction Continued on page 26 SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Continued from page 24

of carbon dioxide emissions is responsible for some of these considerations. The new category would be termed ACEA C5, and is likely to be an SAE XW-20 grade, with a hightemperature high-shear (HTHS) minimum of 2.6 milliPascal-seconds.

These thinner oils will become more commonplace in both passenger car and commercial vehicle applications as the industry continues to strive for improved fuel economy.

However, thinner oils increase concerns about their ability to protect an engine.

The traditional boundary lubrication provided by higher viscosity oils simply is not present in these thinner oils, making these considerations fundamental drivers for continued industry innovation. It is forcing the industry to think far more about what is happening at the metal-to-metal interface and about the role of the surface active additive systems required to provide the necessary protection.

Further Implications For oil marketers, the potential introduction of a new ACEA C category has implications for product line complexity. The best way to visualize the current ACEA C categories is in a simple matrix format shown in the diagram on Page 24.

ACEA tries to keep the number of sequences as small as possible; therefore, discussion is ongoing as to the possibility of eliminating a current category.

Although much of the focus in ACEA 2014 is on light-duty diesel requirements, one area of concern for heavy-duty diesel applications is soot control. It is thought that the Mack T-11 engine no longer represents the soot loading of modern heavy-duty diesel engines, and ACEA 2014 proposes the Mack T8-E as the replacement test for these applications.

The impact of ACEA 2014 on OEMs is significant as well. The organization works closely with the Coordinating European Council (CEC) and OEMs to ensure suitable hardware is developed and made available for testing and establishing specifications. As the technology advances, certain tests naturally come to the end of their useful lives and must be replaced. For instance, the Peugeot DV-4 light duty diesel engine, used to measure an 26

oil’s ability to disperse contaminants and combustion byproducts in direct injection diesel engines, is nearing the end of its working life.

And a new test based on a Euro 5 engine called the Peugeot DV6 is currently in development.

Of course, improved fuel economy, driven

by CO2 legislation and resulting penalties for noncompliance, is a major consideration for OEMs and ACEA 2014. A look to the future shows that as engines continue to be downsized, and as relative power densities increase, the potential exists for increased oxidation, sludge and deposits in the presence of higher temperatures and pressures.

Couple these issues with the thinner oils required to meet fuel economy targets, and the challenges faced by the automotive and lubricant industries come into sharp focus. A close working partnership between the CEC, ACEA and European and global OEMs remains of vital importance, perhaps now more than ever.

To the Future Legislative pressure on vehicle emissions is not going away any time soon; so, the industry can anticipate steady and consistent updates to ACEA and other specifications in the future.

It is up to oil marketers and additive makers to keep pace, enhancing products and services, deploying rigorous testing and serving the marketplace with a dedication to protection, fuel economy and emissions control.

While ACEA 2014 is right around the corner, the industry is keeping its eye on expected updates in 2016 and beyond. Fuels and engine hardware technologies are evolving to make lower emissions possible, and lubricants will have to develop right along with them. o

David Lancaster is the Engine Oils Regional Marketing Manager, EMEAI, at Lubrizol Corp. He can be contacted at david.lancaster@lubrizol.com.

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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L

ubricating greases account for only about 3 to 3.5 percent of total lubricant demand by volume, but they hold a unique posi-

tion among automotive and industrial lubricants because of their performance characteristics.

In a presentation at the Third Base Oils and Lubes Middle East 2014 Conference in Dubai in April, Sudip Shyam, global head of base oils at Gulf Petrochem, said that grease production has traditionally been viewed an art, but increasingly modern technology has made it more of a science.

Greases can perform all functions expected of any

28

lubricant with the exception of cooling or cleaning.

They are very useful in applications where the ability to stay in a mechanism is important. In some instances, they provide lower frictional characteristics than their lubricating oil counterparts.

Grease Markets According to Shyam, the grease market is grap-

pling with two opposing trends that are influencing demand. First, the market is increasing because of industrial and vehicle growth in developing parts of the world. Second, the market is decreasing due to a shift to superior grades that provide longer life.

In Asia and Africa, the first scenario dominates.

“Within each market, the ratio of automotive to

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

BY MARK TOWNSEND

industrial greases varies from country to country,” said Shyam. “It depends on several factors, including the nature of the automotive sector, geographical size, the economy, overall per capita consumption of lubricants and degree of product sophistication.”

Consumption can be classified by segment with on-road vehicles and agricultural equipment accounting for the bulk of usage.

The National Lubricating Grease Institute in the United States has calculated usage patterns based on thickener type with conventional lithium greases accounting for approximately 60 percent of the market, Shyam said.

It is followed by lithium complex (15 percent), all calcium (11 percent), nonsoap (9 percent), aluminium (4 percent) and sodium (1 percent).

In the automotive sector, the main grease applications are wheel bearings, chassis, clutch release and constant velocity joints.

Shyam explained, “There has been a major shift toward lithium greases for wheel bearings, particularly in India, China and Africa. Lithium complex and polyurea greases are used for high-temperature

Grease Consumption World 10%

Asia 13%

10%

9%

10%

10%

8%

6% 26%

6%

27% 6%

3%

3%

28% Railways Construction

25% Mining Agriculture

Steel Auto Industry

On Road Vehicles Other

Source: Gulf Petrochem

automotive applications similar to those found in the Middle East.”

The agricultural and construction markets in Asia and Africa traditionally use low performance greases and multipurpose lithium greases. Similar to the European trend, the use of biodegradable greases is gaining prominence in total loss systems, according to Shyam.

Another important segment is the steel industry, which is a major consumer of high-temperature and high-performance greases, including complex soap and polyurea greases.

Shyam added that calcium

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

sulfonate grease is also gaining usage. “I have seen these greases gaining popularity for use in steel pipe production in India,” he said.

Cement and mining operations are major users of sprayable aluminium complex greases for open tooth gears, particularly where adhesive strength is a consideration. Greases formulated with heavy base oils are preferred in some instances, said Shyam.

Another key application for greases is railroads, specifically where long service life is important.

An example is railway axles where long life lithium

greases are frequently used.

Shyam said, “Complex soap greases are also used for traction motor sealed bearings. In recent news, successful trials were carried out on Bullet Trains in Japan using polyurea grades.”

Outlook for Asia & Africa Shyam said that a number of factors will characterize the market going forward. “Manufacturing output is adequate for now but may need to increase to meet regional imbalances or produce speciality products. Toll processing will predomiContinued on page 32 29

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32

Grease Manufacturing

200

Temperature (oC)

nate, perhaps even increase in some countries. Overall, the market will replace low performance greases, with lithium and other grades gaining momentum.”

For international manufacturers, the majority of markets in Africa will continue to import greases.

Shyam added, “The continent is not immune to environmental pressures, and we expect eco-friendly greases to gain ground, albeit initially in mature markets.”

Changes in the automotive market will drive demand for superior grades, but, Shyam said, “We foresee increased use of specialized grease grades for niche applications such as food processing as well as more fill-for-life applications.” Lithium and transparent greases are the most widely exported, according to Gulf Petrochem, and developing regions will remain the dominant players on the international stage.

The Persian Gulf is home to a number of toll blenders. With Iran potentially about to re-enter the global economy, the region looks set to become a hub for the supply and re-export of greases. “Its proximity to major markets in Africa gives it a unique advantage in supplying the fast growing economies like Nigeria” Shyam noted. “However, Iran’s potential re-emergence as a significant manufacturer and supplier of greases

150 Consistency Adjustment De-aering Filtration Packaging

Saponification Fusion

100

Dilution Cooling Doping

Baking Dehydration

50

20

Milling

0

2

4

3rd Phase

2nd Phase

1st Phase 6

8

10

4th Phase Hours

Grease Thickener Usage

Lithium Complex 18%

Calcium 12%

Other 10% Aluminum Complex 8% Polyurea 6%

Lithium 42%

Sodium 4%

Source: Gulf Petrochem

poses a competitive threat to nascent Gulf-based toll blenders that have been steadily building capacity.”

What Makes a Grease?

The NLGI defines grease as a solid or semisolid product made of a dispersion of a thickener agent in a liquid lubricant base.

In addition, greases may contain special additives to enhance specific properties and may also contain solid lubricants.

Shyam noted that

because of their structure, greases require dedicated manufacturing facilities.

As a result, most marketing companies sell grease produced by third party toll processors.

According to Shyam, typical grease comprises 70 to 95 percent base oil, 6 to 25 percent thickener and 0.5 to 10 percent additives.

“The additives are very similar to the ones used in finished lubricants,” he said. Additives impart special properties and

include oxidation inhibitors, corrosion inhibitors, antiwear agents, solid lubricants and adhesive additives. Nevertheless, most lithium greases contain around 90 percent base oil, Shyam added.

The grease manufacturing process entails several stages. The first requires cooking soap in an open kettle, pressure vessel or contractor. Thereafter, the grease is cooled in a finishing vessel, and additives are incorporated. Milling and deaeration takes place before the finished product is packaged.

The base oils used in grease provide hydrodynamic lubrication in the contact, and the type of base oil will depend on the application. Mineral base oils account for about 90 percent of the market and perform well in applications that range from minus 30 to +150 degrees C. Synthetic oils with a temperature range of minus 70 to +300 degrees C can be based on polyalphaolefin, ester, silicone or perfluoropolyether (PFPE).

In terms of cost, mineral base oils are the least expensive. In contrast, a synthetic hydrocarbon is about four to five times more expensive, said Shyam. “Esters are 7.5 times more expensive, silicones 13 times and PFPEs a staggering 380 times.”

The role of thickening agents is similar to that of a sponge, said Shyam. Its function is to retain the Continued on page 34

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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lubricating oil and liberate it gradually according to the demands of the application. For example, low pressure squeezes out a small amount of oil, while higher pressure produces a higher outflow.

Several types of thickeners are used, including lithium, calcium, aluminium and sodium. Nonsoap thickeners are silica, clay and polytetrafluoroethylene. Lithium accounts for the bulk of the grease market. Shyam explained that lithium soap-based greases dominate the market and typically have dropping points of 180 to185 degrees C and operate efficiently in temperatures around 145

degrees C. Shyam noted that viscosity is an important performance characteristic of grease. Usually, light loads require base oils with a lower viscosity, and higher loads need thicker base oils. Highspeed applications require lighter viscosity base oils, and slow speed applications require thicker viscosity. Similarly lower temperature applications require lower viscosity base oils.

The high use of lithium compared to other thickeners is due to the properties it produces in a grease, particularly smooth buttery appearance and high dropping point. It is used

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Calcium thickeners produce a smooth buttery grease and good water resistance, Shyam said, but with a lower dropping point compared to lithium thickeners. Calcium is widely used in bearings in wet applications, railways and automotive chassis.

Sodium produces rough fibrous grease with a moderate to high dropping point and poor water resistance. “Its use is confined to older industrial equipment where frequent lubrication is required,” Shyam noted.

Aluminium thickeners produce smooth gel-like

greases with a low dropping point and excellent water resistance. They are used in wet applications or bearings operating at slow speeds.

Lithium, aluminium and calcium complex greases have higher dropping points, greater than 260 degrees C. “Except for lithium complex, these thickeners provide good water resistance,” Shyam said. “They are used in high-temperature industrial and automotive bearing applications.” Typically, their appearance is smooth and buttery or gel-like.

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SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

NLGI Rating System

Number

ASTM worked penetration @ 25°C (tenths of a mm)

6 5 4 3 2 1 0 00 000

Consistency

85 -115 130 - 160 175 - 205 220 - 250 265 - 295 310 - 340 355 - 385 400 - 430 445 - 475

Block Extremely stiff Very stiff Stiff Standard grease Soft, for centralized lube systems Very soft Semi fluid Fluid ‘slumping’ grease

Source: NLGI

of friction and good load/ wear properties. “They are used in aircraft applications, vacuum oxygen systems, high temperature industrial, chemical plants and food industries,” said Shyam.

Carbon black thickeners produce grease suitable for load bearing applications in high temperature conditions such as open gears.

Other thickeners include polyurea, organo clays and silica.

Testing and Classification “Because greases are semisolid, most tests used for lubricating oils are not suitable for greases,” Shyam explained. “Instead, three tests are used on greases.” The first measures dropping point. The second assesses penetration and consistency. The third measures penetration after working the grease in a grease worker.

NLGI has standardized a method to classify greases into nine categories on the basis of penetration.

The most commonly used categories are NLGI 2 and 3, with NLGI 2 accounting for 85 percent of the grease market, according to Shyam. Generally, the

lower the penetration (measured in tenths of a millimeter), the thicker the grease.

Laboratory evaluation of lubricating greases involves the simulation of actual working conditions in standardized test equipment. The tests include oxidation stability, corrosion resistance, shear stability, water resistance and extreme pressure properties to evaluate the load carrying ability of greases.

“Testing also assesses oil separation tendency, which is a key property,” said Shyam. “Test standards have been set down by three international bodies: ASTM, ISO and International Petroleum. o

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GROWING

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36

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

F

ull synthetic lubricants demand is expected to grow more than 3 percent per year in Europe and by more than 4 percent per year in Africa and the Middle East from 2013 to 2023, said consultancy Kline and Co. During that time, Kline projects little growth in Europe’s semisynthetic demand, while semisynthetics are expected to grow by nearly 2 percent per year in Africa-Middle East.

Synthetics accounted for 28 percent of Europe’s lubricant demand in 2013 and 4 percent of lubricants demand in Africa-Middle East, excluding process oils, Kline found.

Globally, synthetics’ 13 percent share of the 33.5 million metric ton lubricants market in 2013 will grow to 18 percent of the 38.7 million tons of total lubricant demand in 2023, Kline forecast.

“Much of that has to do with OEM technical demand, new vehicle sales in Asia-Pacific, and industrial and commercial equipment modernization,” George Morvey, industry manager for Kline’s energy practice, said during a web presentation in June. The widespread availability

of API Group III base oil is another key factor, he said, noting that it is moving into the automotive space and driving growth in synthetics and overall industry growth.

By 2017, Kline projects full synthetic and semisynthetic lubricants together will account for 15 percent of a global lubricant market estimated to reach 35.2 million metric tons by that year. According to Morvey, synthetic lubricants covered in the study included those formulated with Group III, Group III+ (gasto-liquids), Group IV and various Group V base stocks. He noted that while semisynthetics contain a portion – usually 20 to 30 percent – of such base stocks, there is no generally accepted cut-off.

Kline’s study found Europe had the largest synthetics consumption by volume, at 28 percent of the region’s total lubricants consumed in 2013. In North America, synthetic lubricant penetration reached 15 percent in 2013. In Asia-Pacific, 10 percent of total lubricant demand consisted of synthetics. South America’s synthetics penetration reached 7 percent, while Africa and Middle East

together saw just 4 percent.

Including process oils, Europe accounted for 17 percent (6.7 million tons) and Africa-Middle East for 8 percent (3.1 million tons) of 39.2 million tons of global lubricant demand in 2013, Kline estimated.

Consumer Automotive Synthetics are projected to account for 33 percent of 10.9 million tons global demand in the consumer automotive lubricants market in 2023, up from 26 percent of 9.4 million tons demand in 2013. In Europe in 2013, the United Kingdom had the highest synthetic penetration in its consumer lubricants demand at 81 percent, followed by Poland (80 percent), Russia (77 percent), Turkey (76 percent), France (75 percent), Germany (73 percent), Benelux (64 percent) and Italy (61 percent). Among countries in the Middle East and Africa, Egypt leads with 7 percent.

Wholesale conversions from conventional to synthetic motor oil by carmakers such as Toyota, Honda and General Motors have increased the demand for synthetics. “These volume OEMs really move the needle

Penetration of Synthetic & Semisynthetic Lubricants, 2013

30% 25% 20%

13

15% 10% 5% 0%

16

11 Semisynthetic

4 15 Europe

11

4 6

North Asia Pacific America

3 4

13 1 3

South Africa America Middle East

Regions

MWF

15

1 11

5 3 3

3

Consumer Gen Ind Commercial Other Automotive Oils Automotive Industrial

Synthetic

8 Total

Products

Source: Kline & Co. LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

37

Global Synthetic & Semisynthetic Lubricant Market Penetration, 2007-2013 30% 25% 20% 15%

26% 18% 19%

2007

22%

2009 2011

10%

12% 12%

5% 0%

5% 5% 5% 6% Consumer Automotive

Commercial Automotive

8% 9% Industrial

10% 10%

12% 13%

2013

Total

Source: Kline & Co.

in terms of synthetic penetration, and we expect that to continue as more and more of these types of OEMs convert either fully to synthetic or partially depending on their engine platforms,” he noted. “Certainly, we are seeing longer oil drain intervals and more vehicles equipped with oil life monitoring systems. In some

cases, if you follow the system, the car might need an oil change once a year. With some German imports, that could be 14, 15 or 16 months before getting an oil change. Those OEM factors are pushing the extended oil drain intervals and in turn creating demand for synthetics.”

Morvey said that synthetic mo-

tor oil sales are handled mainly by do-it-for-me channels in all markets.

“Within the installed channels, more of the product is being consumed and pushed through OEM franchise workshops,” he said. “In countries where they might have an older parc, people are using installed or independent workshops rather than

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SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Global Lubricant Demand Growth, 2013-2023

8%

Synthetic

6%

Semisynthetic

4%

Conventional

2%

Total

0% -2%

Asia Pacific

North America

Europe

Africa Middle East

South America

Global

Source: Kline & Co.

franchises.”

Mechanics and technicians play a significant role in influencing a customers’ choice of lubricant.

“Vehicle owners look to … experts to make the brand and product selection, and lot of them are doing that over an OEM approved brand list,” he pointed out. “A lot of the promotional activity we see in certain country markets is really directed to

that decision maker as opposed to the vehicle owner.”

In Europe, Kline found the penetration of passenger car synthetic engine oil was driven by several factors, including established OEM technical demand in both premium and mass market vehicles, consumer demand for extended oil drain intervals, lower maintenance costs and environmental benefits. Morvey said synthetics

demand in Africa and the Middle East is mainly from South Africa, the United Arab Emirates, Saudi Arabia and Egypt. While the synthetic demand depends on the premium and imported car parc, about 47 percent of passenger car engine oil demand in Africa-Middle East is monograde, Kline found. Factors dampening demand for synthetics in Africa-Middle Continued on page 43

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East include older car parcs, price sensitivity, preference for shorter oil drain intervals, low consumer awareness of synthetics’ benefits and older API service categories.

Commercial Automotive On the commercial automotive lubricants side, Kline projects synthetics to account for 7 percent of a 13.9 million ton global demand in 2023, up from 6 percent of 11.9 million tons in 2013. Europe had the highest synthetic penetration in its heavyduty engine oil demand in 2013 at 24 percent, including 6 percent synthetic and 18 percent semisynthetic.

“If you look at Europe, especially Western Europe, the country markets there tend to support a modern and well-maintained fleet,” Morvey said.

“Extended oil drains are preferred, but right now conventional products with Group II formulations are meeting those needs.”

He noted that it is difficult to convince owner/operators and fleet managers about the synthetic value proposition. Light commercial vehicles and consumer vehicles in commercial applications may present more opportunity, he said.

In Europe in 2013, Germany had the highest estimated synthetic penetration in its commercial automotive lubricant demand at 56 percent, followed by Benelux (26 percent), Russia (25 percent), the United Kingdom (17 percent), France (16 percent), Poland (16 percent), Italy (13 percent and Turkey (10 percent). Among countries in Africa and the Middle East, Egypt led with 1 percent synthetic penetration.

Morvey noted that fuel quality and economics play important roles in the selection of synthetics. For example, European fleets traveling into Eastern Europe have reported poor fuel quality “that forces them to change the oil more frequently and, in effect,

negates the benefits of synthetics,” he said.

One key issue in the commercial space is the effort to convince owneroperators and fleet managers of the synthetic value proposition. “For preventive maintenance programs, … a Group II product meets those fleets’ needs to extend oil drains and maximize maintenance programs,” Morvey pointed out. “So it’s a chal-

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

lenge – almost door-to-door marketing – talking to decision makers, and trying to convince them to move to synthetics. We think the opportunity for synthetic engine oils is more in the light commercial vehicle category and consumer vehicles – passenger cars, pickups, and minivans used in commercial applications like rentals and taxis.”

Continued on page 45

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Industrial On the industrial side, about 16 percent of the projected 13.9 million tons of industrial lubricants consumed in 2023 is expected to be synthetics, up from 12 percent of 12.2 million tons in 2013. Europe, along with North America, is a leading region in synthetics penetration.

Kline found key factors included OEM approvals and recommendations for synthetics, fit-for-purpose applications, modern equipment, advanced technologies, processes, maintenance programs, extended oil drain intervals, environmental and government regulations.

In Europe in 2013, Germany had the highest estimated synthetic penetration in its industrial lubricant demand with 32 percent, followed

by Italy (18 percent), the U.K. (17 percent), France (17 percent), Turkey (12 percent), Russia (12 percent), Poland (10 percent) and Benelux at 8 percent. Among countries in Africa and the Middle East, Egypt had the largest synthetics penetration in industrial lubricant demand at 4 percent.

Kline found synthetic penetration varies by industry. “Certain industries just have a higher appetite for synthetics for a whole host of reasons,” Morvey said, including aviation, power generation, metal processing, transportation and the equipment industry. He pointed out that in aviation, synthetic is really the only option. In power generation, as more wind turbines are installed on or offshore, demand will rise for synthetic gear oil in gearboxes and for synthetic grease. Metal processing, transportation and equipment industries will also remain attractive markets for synthetics, he said.

ExxonMobil had the top estimated market share among suppliers of full synthetic finished lubricants in Europe at 18 percent, Kline said. It was

followed by BP (16 percent), Shell (10 percent), Fuchs (8 percent), Total (7 percent), Petronas (3 percent), Valvoline (2 percent) Chevron (1 percent) and Phillips 66 (1 percent).

Many other supplies accounted for the remaining 34 percent.

ExxonMobil also had the top estimated market share among suppliers of full synthetic finished lubricants in

LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

Africa and the Middle East combined, at 12 percent. It was followed

by BP (9 percent), Total (7 percent), Shell (6 percent), Fuchs (5 percent), Petronas (4 percent) and Chevron 2 percent). Many other companies accounted for the remaining 55 percent.

Kline’s report is titled, “Global Synthetic Lubricants 2013: Market Analysis and Opportunities.” o

45

SPOTLIGHT ON UKRAINE, TURKEY & ROMANIA

BY BORIS KAMCHEV

DOING BUSINESS IN TURBULENT TIMES

46

Vehicle Sales in Ukraine, 2009-2012 300000

26,002

250000 300,000

250,000 200000

23,437 32,093

Passenger Cars

20,161

200,000 150000 150,000 100000

175,165

169,540

2009

2010

Commercial Vehicles

207,453

237,602

2011

2012

100,000 50000 50,0000 Source: Prista

W

hile lubricant consumption continues to rise slowly in Eastern Europe, the economic woes of Ukraine, Turkey and Romania – and political and military conflicts raging in Turkey and Ukraine – could force the region’s small to mid-size blenders to look elsewhere for new opportunities.

This warning was sounded by Prista Oil CEO Ivo Todorov at Argus’ European Base Oils Conference in Istanbul in March A Bulgarian holding company, Prista Oil Group is active in lubricant production and the batteries business.

It operates in 25 countries in Eastern,

Central and Southeastern Europe, as well as Central Asia. The group’s turnover in 2013 was €250 million.

Ukraine in Turmoil With an annual consumption of 350,000 to 400,000 tons, Ukraine is East Europe’s largest lubricants market, excluding Russia. Although base oil production ceased in the country a few years ago, Todorov said, Ukrtatnafta owns an API Group I plant in Kremenchuk with nameplate capacity of 5,800 barrels per day.

Ukraine’s lubricants typically meet only the former Soviet GOST specification, an obsolete standard, he

Vehicle Sales in Turkey, 2009-2012 900000 900,000 800000 800,000

270,920

700000 700,000

251,129

600000 600,000 500000 500,000 400000 400,000

Passenger Cars

187,307

300000 300,000 200000 200,000 100000 100,000 00

261,340

509,784

Commercial Vehicles

593,519

556,280

2011

2012

369,819

2009

2010

Source: Prista

47

Vehicle Sales in Romania, 2009-2012 140000 140,000 120000 120,000

17,545

100000 100,000

9,649

80000 80,000 60000 60,000

Commercial Vehicles 13,799 14,287

116,016

40000 40,000

94,441

81,709

2010

2011

66,436

20000 20,000

00

2009

2012

Source: Prista

Passenger Cars

said. However, before the country’s recent military and political crises, “Ukraine’s renewed passenger car and heavy duty fleets were driving demand for higher quality lubricants and specialties.” However, annual sales of passenger cars slumped from 610,000 units in 2008 to 169,500 units in 2009, and rebounded to only 237,000 units in 2012.

Until 2008, Ukraine was the regional champion for foreign direct investments in heavy industry, mining and other industries, but, Todorov said these ventures stalled with the political uncertainty and subsequent turmoil that ultimately led to conflict with Russia. “Also, The country’s economic performance and GDP dropped after 2008, impacted by the economic crisis in Europe. And instability in the local currency is limiting the activities of foreign operators.”

Aside from the current conflict,

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SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Ukraine’s economy faces many problems that hamper the operations of lubricant marketers. For example, Prista found the country’s macroeconomics are highly volatile and depend on a limited number of well-developed industries; namely, mining, metallurgy and agriculture.

These sectors are Ukraine’s main export drivers and sources of foreign currency.

In addition, Todorov said, Ukraine is highly dependent on trade with Russia and lacks the investments necessary to modernize its technology.

Also, foreign investors are challenged by complex legislation, red tape and interference from local administrations. “And it is extremely prone to corruption,” Todorov said.

While Prista found that Ukraine could be a potential driver for growth in Europe, deteriorating relations with Russia have had a severe negative impact on the economy.

“The market has shrunk three times since the economic crisis years.

And the conflict with Russia also stalled investment opportunities,” Todorov said. For example, Prista broke ground for a rerefinery project in Kiev oblast in October 2013, but has put the project on hold due to the escalation of the conflict with the pro-Russian insurgency in the country’s east.

Other obstacles include fast depreciation of the local currency, valueadded tax refund delays for exporters and a banking sector badly in need of reform. Taking all these factors into account, Ukraine does not provide promising short- to mid-term growth prospects. Todorov concluded, “We expect a long recovery period despite the aid promised by the United States, European Union and [International Monetary Fund].”

Turkey at a Crossroads Turkey is the largest lubricants market in the region, and its annual

lubricant consumption has ranged between 420,000 and 500,000 tons in the last several years, according to Prista. However, the Turkish market has stagnated in the last two years because its economy is highly dependent on exports to the EU and neighboring markets that have experienced economic slowdowns.

According to the Turkish Oil Industry Association, the country has

255 facilities that produce lubricants, with a total production capacity of over 5.1 million tons in 2012.

“This overcapacity puts pressure on margins and supply in the market,” Todorov said.

In a presentation at the ICIS Turkish Base Oils and Lubricants Conference in May, Selim Sanver, managing partner of Serem Petrol, said, “Regulations concerning the

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importation of base oils into Turkey have been changed three or four times in the past two years, and sales were interrupted for several weeks as a result,” he said. The changes were announced without prior warning to the industry, he said, so companies had to scramble to comply before they could import or ship product.

Todorov noted that the govern-

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ment recently introduced changes in legislation aimed at preventing the illicit mixing of base oil in diesel fuel, a situation caused by the significant import tax difference between base oil products and other petrochemicals such as fuels. He added that the Turkish tax system is used by “some small producers to acquire an additional marketing advantage, which hampers the operation of the regular players in the lubricants market.” He added that the country’s “uncertain legal framework makes it difficult for lube marketers to do business.”

Turkey’s growth was negatively impacted by the global economic downturn and later by political turmoil that arose over the last couple of years, said Todorov, referring to antigovernment protests that began in May 2013.

“Foreign investors’ appetite for financial exposure was reduced by the political and economic instability.

Depreciation of the Turkish lira and extended payment terms are also limiting the growth of the lubricant marketers’ business development.”

Another important negative factor that caused the Turkish economy to stagnate is a drop in the number of public sector projects, a smaller number of capital developmental projects and the lack of liquidity in the market.

Over the last few years, Turkey has shown strong results in passenger car sales. “The peak year was 2011, when almost 600,000 units were sold, nearly double 2008,” Todorov said.

In 2012, passenger car sales reached 556,000 in Turkey, and commercial vehicle sales reached 261,000, or around 10,000 units lower than the year before.

Romania Facing Slowdown The Romanian lubricant market amounted to approximately 90,000 t/y in 2012, according to Prista.

“Well-developed metallurgical and

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

automotive industries are among the main drivers of the country’s lubricant consumption. Demand has been almost constant over the last five years. Romania is a typical example of a market in transition from emerging to mature, and it has low expectations for further growth,” Todorov said.

Prista found that during the last few years, the Romanian economy contracted, and the country implemented severe austerity measures to achieve financial stability. “There is a lack of liquidity in the market,” Todorov said, “and public sector projects, which play a considerable role in the GDP, have been curtailed.” Also, the European Union’s financial crisis impacted negatively on the country’s economy.

As in the Ukraine, Romanian passenger car sales slumped drastically since the onset of the global economic downturn. “In 2008, the country’s passenger car sales amounted to 285,000 units, and shrunk to only 66,000 units in 2012,” Todorov said.

countries have a favorable image of imported products due to unsatisfactory domestic production standards,” he said.

Despite the fact that Africa consumed only 1.3 million t/y in 2012, and holds a 5 percent share of global lubricant demand, its finished lubricant consumption is expected to have an annual growth rate of 3 to 5 percent, according to Todorov. “This

is due to the increased investments in production, infrastructure and fleets in the region,” he concluded.

According to Prista, 80 percent of the demand in Africa is concentrated in five markets: Egypt, 460 000 metric tons; Nigeria, 230 000 metric tons; Algeria, 190,000 metric tons; South Africa, 240,000 metric tons; Morocco, 100,000 metric tons; and Angola, 80,000 metric tons. o

Looking for Markets The economies of Ukraine, Turkey and Romania have their individual woes, and lubricant marketers from the region have to look elsewhere for growth opportunities, Todorov said. The main destinations for them should be Asia, the Middle East and Africa, according to Prista.

“The growing economies of Asia and Middle East are considered a new wave of emerging markets. Their increasing lubricant demand cannot be satisfied by domestic supply, especially demand for high-tier products and specialties,” Todorov said.

“Central Asia, in particular, is gaining importance as an emerging market,” noted Todorov. Demand in these countries will increase because of the growing need to develop local industries and infrastructure.

“In addition, consumers in these LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

51

Newsmakers

Oronite Expands in Singapore Chevron Oronite has completed a major expansion at its lubricant additive plant in Singapore. The project increased the facility’s capacity to produce dispersants and, according to Oronite, padded its position as the largest additive plant in Asia. Officials said the expansion will help them meet the region’s growing demand for lube additives, while also bolstering its global supply chain.

The company did not disclose the capacity of the plant or the cost of the

project, but they have said the facility has more than doubled in size since opening in 1999. Besides adding reactors to increase dispersant production, the expansion increased storage capacity for raw materials and intermediates, upgraded production control processes, improved delivery efficiency and added a new quality control lab.

Oronite President Des King told Lube Report Asia that the plant may expand detergent capacity in the foreseeable future. “We anticipate if the market continues to grow, in

52

Hydrodec, CEP Ink U.K. Rerefinery Deal Hydrodec signed engineering, licensing and technology collaboration agreements with Chemical Engineering Partners for a planned U.K. rerefinery capable of producing API Group II/II+ base oil, potentially by 2016.

Announced August 1, the agreements would provide Hydrodec with an exclusive U.K. license to develop CEP’s wiped-film evaporation and hydrogenation technology, as well as the basic engineering for a 75 million liter per year lubricant rerefinery.

The project is separate from Hydrodec’s previous arrangements with Essar Oil UK to collaborate on a joint venture oil rerefining center at Continued on page 54

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

Photo courtesy of Chevron Oronite

Oronite’s expanded Singapore plant makes lubricant additive components and also blends additive packages.

a few years we may be ready to do that,” he said. He cited forecasts that Asia’s demand for lubricant additives will increase by 70 percent in the next decade.

The Singapore plant makes lubricant additive components such as dispersants, detergents and antiwear additives. It also blends components made elsewhere to produce lubricant additive packages that customers combine with base stock to make finished lubricants.

A LUBES’N’GREASES PROFILE Andrey Yashkin, Andreas Rogge, Miroslav Pribyl MANAGING DIRECTORS, MOGOIL GMBH FAVORITE HOBBIES - Yashkin: History and literature, and jogging (but not fanatically); Rogge: Sea-fishing; Pribyl: Winter sports, tennis, golf, virgin nature.

FAVORITE FOODS - Yashkin: Italian and Mediterranean; Rogge: German; Pribyl: Czech and

spaghetti!

FAVORITE BOOKS - Yashkin: 19th and 20th century classics, like Nabokov, Ayn Rand, Mann, Bunin … I don’t want to insult the authors and favor some; Rogge: I try to read everything; Pribyl: Many, like Kafka, Hasek, Heller.

FAVORITE MAGAZINE – All: Lubes’n’Greases!

FAVORITE PLACE TO ADVERTISE - All: Lubes’n’Greases, of course! Rogge: and UNITI meeting

sponsorship.

FAVORITE DESTINATIONS - Yashkin: Italy; Rogge: Norway; Pribyl: Czech Republic and any

place with local people is interesting to me.

FAVORITE QUOTE - Yashkin: “Think two steps ahead and try to bring your idea to your target!” Rogge: “Everything will be fine!” Pribyl: “Search for the cause!”

For advertising information contact Gloria Steinberg Briskin +1 703-536-7676 e-mail: gloria@LNGpublishing.com www.LNGpublishing.com

Continued from page 52

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Stanlow, U.K., including a pilot plant focused on rerefining used paraffinic base stocks and later a rerefinery with API Group II+ and III base oil capacity, also by 2016.

Hydrodec is pursuing the CEPenabled rerefinery project independently and at a “separate, advantaged location on which it is developing an option for lease and development,” according to its news release. Hydrodec foresees opportunities to collaborate with CEP on other projects by incorporating Hydrodec’s provisionally patented pretreatment and hydrogenation technology within the CEP technology platform.

CEP President Joshua Park explained that Hydrodec believes some developments from its existing technology may be compatible with CEP’s technology, “and potentially make a very significant improvement to the used oil rerefining technology.”

According to Park, 10 rerefineries currently use CEP’s technology.

Base Oil Expansion Planned in Turkmenistan South Korea’s Hyundai Engineering Co. and LG International Co. are in the midst of a project to expand capacity for base oil, fuels and other petrochemicals at Turkmenbashi refinery, the Turkmen Oil and Mineral Resources Ministry said in July. The project is expected to add 2 million tons per year of crude oil processing capacity to the refinery’s current 6 million t/y capacity by 2015. It will augment the refinery’s light and heavy gas oil processing, along with processing of other residues such as tar oil.

A new vacuum fractionating column has already been erected at the vacuum fuel-oil residue refining unit. The column was transported from the South Korean port of Masan, the ministry said. “At the moment, construction is going on at the coke production plant with the tar oil deas-

phaltization unit and at the preliminary crude oil distillation unit,” it said.

The U.S. $534 million overhaul of the refinery, located on the Caspian Sea, was launched in 2012 and is expected to finish by mid-2015, according to a Hyundai official, quoted

by Reuters in 2012. So far, modernization efforts have resulted in a finished catalytic cracking unit and the units for catalytic reforming, hydrotreatment of diesel fuel and treatment of kerosene.

Turkmenistan’s government expects crude oil processing capacity at the nation’s two refineries to reach 15 million t/y by 2015. It has set an ambitious target to upgrade its refining industry and boost its oil refining to 30 million tons by 2030. Current combined crude throughput is 10 million t/y.

Carsten Ladekjær KPI Bridge Names New CEO KPI Bridge Oil, a global broker and trader in marine bunkers, marine lubricants and risk management products, has appointed Carsten Ladekjær as Chief Executive Officer for the group.

Ladekjær brings 20 years’ experience in the bunker business to the position, having served as Senior Vice President and CEO of leading global bunker companies.

Tanzania Outs Substandard Lubes The Tanzania Bureau of Standards published a public notice naming several passenger car and heavy duty motor oils the agency says do not comply

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

with the country’s lubricant standards.

The public notice, “Poor Lubricant and Oils in the Market,” appeared in the local Guardian newspaper in Tanzania.

The agency is responsible for regulating standards in Tanzania.

“The TBS is hereby notifying users of lubricants and oil products and the public in general, that the under mentioned brands of lubricants and oils used in vehicles do not comply with the Tanzanian Standard for products, i.e.,TZS 467:2001, Engine oils-Minimum performance –Specification,” the notice stated. “Legal action as per the standards Act No. 2 of 2009 will be taken against whoever is found selling, importing, distributing or involved in any transaction of such substandard products.”

Due to widespread counterfeiting in Tanzania, product brand names may not accurately reflect the actual manufacturer of the product. Nichonia Mabuka, head of the agency’s chemical section in Dar Es Salam, Tanzania, said that the act establishing the bureau of standards empowers it to inform the public of risk associated with patronizing substandard lubricants on the market.

“Instead of going to individual companies/shops to raid, it is more rewarding to publish in a national newspaper. We think it is one of the ways we can enforce standards on the market properly,” Mabuka said in an interview.

On the other hand, Mabuka said one of the challenges the agency has encountered in the war on substandard lubricants is that the Tanzania Bureau of Standards does not have power to regulate the Zanzibar end of the market, which accounts for most of the substandard lubes on the market.

“However, to curb the situation, the governor of Zanzibar has come up with the establishment of [Zanzibar Bureau of Standards] to complement the TBS’ duty/role,” Mabuka said,

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LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

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noting that the Zanzibar agency will complement the Tanzania agency’s effort to sanitize the lubricant sector. Rhoida Andusamile, the TBS’ corporate and public affairs officer, emphasized that the aim of the public notice was to ensure that Tanzanians only consume lubricants that meet the required standards.

Klueber, Chem-Trend Invest in China Klueber Lubrication and sister company Chem-Trend opened a research and development center near Shanghai, their parent company, Freudenberg Group, announced. The German companies also plan to expand lubricant and release agent manufacturing facilities that already exist at the site in Qingpu. Altogether the projects will entail investment of ¥150 million (U.S. $24 million) over the next three years, Freudenberg said.

Industry Calendar SEPTEMBER 17-18. 2014 European Base Oils & Lubricants Summit

Venue to be Determined, Alicante, Spain E-mail: cwilliams@acieu.net Website: www.wplgroup.com/aci/conferences/ eu-ebl6.asp

23-24. ICIS Food Grade Lubricants Conference

Westin Grand, Berlin, Germany E-mail: sarah.j.butler@rbi.co.uk Website: www.icisconference.com/ FoodGradeLubricants

OCTOBER 13-15. ICIS Middle Eastern Base Oils & Lubricants Conference

Intercontinental Festival City, Dubai, U.A.E. Email: cheryl.smith@rbi.co.uk Website: www.icis.com/mebaseoils 56

Klueber is one of the world’s largest suppliers of specialty lubricants, while Chem-Trend offers specialty mold release agents and lubricants along with ancillary products. Freudenberg, which is based in Munich, Germany, said the investments are a reaction to growth in the Chinese market.

“Our overall investment concept in China is in line with market and customer requirements,” said Hanno D. Wentzler, regional representative of Freudenberg Group and chief executive officer of Freudenberg Chemical Specialities, the division that includes Klueber and Chem-Trend. He added that the research and development center is being built to provide technical services in closer proximity to customers.

Once the manufacturing expansion is complete, the Qingpu facilities will be Klueber and Chem-Trend’s largest production and sales site in Asia.

U.S. Sanctions Oil Supplier over Syria The United States Treasury Department imposed sanctions on United Arab Emirates-based Pangates International Corp. for providing material support – including lubricants, lubricant additives and base oil – to Syria’s government, including Syrian state oil company Sytrol. According to a July 9 U.S. Treasury Department news release, from at least 2012 to April 2014, Pangates supplied Syria’s government, including Sytrol, with a large amount of specialty petroleum products. “Although these products can be used for military or civilian purposes, they have limited civilian application in Syria,” the department stated. “In January 2012, Pangates arranged to supply the government of Syria, including Sytrol, with various specialty petroleum products, including automotive gear box oil, turbine

20-23. SAE 2014 International Powertrain, Fuels & Lubricants Meeting

The ICC Birmingham, Birmingham, U.K. Email: saeevents@sae.org Website: www.sae.org/events

22-24. UEIL Annual Congress 2014

Intercontinental Hotel, Madrid, Spain Email: info@ueil.org Website: www.ueil.org/en/events/Congress-2014

30-31. Bultrib’14

Technical University, Sofia, Bulgaria Email: emiass@abv.bg Website: www.bultrib.com

30 Oct-1 Nov. Balkantrib’14

Hotel Palace, Sinaia, Romania

12-13. International Lubricants Russia Conference

Azimut Moscow Olympic Hotel, Moscow Email: Konstantinova.Elena@rpi-inc.com Website: rpi-conferences.com

20-21. ICIS & ELGI Industrial Lubricants Conference

NH Grand Hotel Krasnapolsky, Amsterdam, The Netherlands Email: stephanie.kluth@rbi.co.uk Website: www.icisconference.com/ industriallubricants2014

DECEMBER 3-4. 7th Annual Base Oils and Lubricants in Russia & CIS Conference

Berlin, Germany

Email: balkantrib14@gmail.com Website: balkantrib.upg-ploiesti.ro

Email: a.tyumenin@theenergyexchange.co.uk Website: www.wraconferences.com/event/ cis-downstream-week-2014

NOVEMBER

JANUARY

4-6. ICIS African Base Oils & Lubricants Conference

27-29. OilDoc Conference & Exhibition

Westin, Cape Town, South Africa Email: rob.porter@rbi.co.uk Website: www.icisconference.com/ africanbaseoils

KUKO Conference Center, Rosenheim, Germany Email: info@oildoc.com Website: www.oildoc-conference.com

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

oil additives and marine engine oil.”

Between January 2012 and April 2012, the department said, Pangates supplied Syria’s government with, among other things, 3,300 metric tons of lubricant oil additives, 155 metric tons of the fuel additive MMT and 1,000 kilograms of a static dissipator additive. “In early 2012, Pangates participated in providing the government of Syria with over 4,000 metric tons of base oil,” the department noted.

According to the news release, U.S. persons are generally prohibited from engaging in any transactions with Pangates, and any of its assets subject to U.S. jurisdiction are frozen. “Alongside other administration efforts, we remain committed to applying economic and financial pressure on those providing support to the Assad regime,” Under Secretary for Terrorism and Financial Intelligence David Cohen said in AF_LNG_184,2x123,8mm_julio2014.pdf the news release.

1

From the onset of unrest in Syria to date, the U.S. has imposed sanctions on nearly 200 individuals and entities, including the government of Syria, its Central Bank and affiliated oil companies. Both the European Union and the U.S. have imposed sanctions on Sytrol.

Infineum Appoints Multisol as ME Distributor Infineum announced that effective October 1, 2014, Multisol, part of Brenntag, will be Infineum’s distributor in the Middle East. Multisol will distribute Infineum’s lubricant additives across United Arab Emirates, Bahrain, Jordan, Lebanon, Iraq, Oman, Kuwait, Yemen and Qatar.

Having worked with Infineum since 1990, this appointment extends Multisol’s existing cooperation with Infineum in Europe and Russia. Multisol is a specialist chemical distributor, with 25/07/14 9:27

facilities in England, France, Russia and South Africa, and it has been part of the Brenntag Group since 2011.

Temix Acquires Oleochimica Italia Temix International Srl announced that S.A.P.I. SpA, an Italian company active in the manufacturing and sales of animal fat, has acquired onethird of Temix international Srl. With this infusion of capital, Temix acquired 100 percent of Oleochimica Italia Srl (previously known as Undesa), located in Calderara di Reno (Bologna), manufacturer of fatty acids, glycerine, esters, etc. in Italy. Temix said the acquisition strengthens its position in the esters market, especially the lubricant sector. o

Send company news to Dick Beercheck at dick@LubesnGreases.com.

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LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA • SEPTEMBER 2014

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LAST WORD

BY FREDERIK WOLF AND KARTIK PONDICHERRY

A Close Look at Static Friction in Start/Stop Applications

0.25

58

0.20 Coefficient of Friction

I

n most systems, the critical factor is a lubricant’s ability to form a hydrodynamic film to reduce friction and protect against wear. This film forms at specific speeds, as described by the Stribeck curve.

However, many applications do not run continuously but operate with start/stop motions. The critical factors in such contacts are the force and energy required to overcome the static frictional resistance of the contact.

While low break-away force is preferred in most cases, a certain amount of resistance is usually required to prevent unwanted movements, depending on the specific requirements of the application.

A suitable method for determining static friction is to continuously increase force until relative motion is detected between the contacting surfaces. Precise measurements of static friction require that low values of force, speed and deflection be applied and measured with high resolution.

Typically, special equipment is needed to make these measurements, and high-precision measuring devices, such as those used in modern rotational rheometers, provide the resolution and accuracy required.

The continuous increase of force and controlled increase in speed after entering the dynamic regime allow both static friction and film forming

Limiting Friction of Grease 2 > Grease 1

Grease 2

0.15 0.10 Grease 1 0.05 0.00 1.0E-05

1.0E-03

1.0E-01

1.0E+1

1.0E+03

Speed [rpm] Plots show the difference in frictional behavior of two greases with respect to rotational speed. Grease 1 provides lower resistance to start up motion. properties to be characterized, as shown in the graph for two greases.

The plot shows that friction coefficient increases steeply during the initial phase of the speed ramp for both greases. Their peak values represent the limiting friction coefficient for each system.

As shown, grease 2 has a higher value of limiting friction, about 0.175, compared to grease 1, with a value of 0.125. This implies that the force required to overcome resistance is higher for grease 2. The curves also show that the friction coefficient for grease 2 is more strongly dependent on rotational speed than for grease 1.

The tests provide accurate, reliable and reproducible characterization of

the limiting friction of greases. They can be used to pre-screen greases prior to component or real life testing. In addition, the principles can be applied to other tribological challenges to demonstrate the impact of lubricant, material and operating conditions on lubricant performance. o Frederik Wolf is Product Manager Tribometer at Anton Paar Germany GmbH, Ostfildern, Germany.

He can be contacted at Frederik.Wolf @anton-paar.com.

Kartik Pondicherry is Product Specialist Tribometer at Anton Paar GmbH, Graz, Austria. He can be contacted at Kartik.Pondicherry @anton-paar.com.

SEPTEMBER 2014 • LUBES‘N’GREASES EUROPE-MIDDLE EAST-AFRICA

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