Follow Blog via Email

Enter your email address to follow this blog and receive notifications of new posts by email.

Recent Archives

Lubricant Additive Prices are Moving Up

Lubrizol – On May 29th, Lubrizol announced it will implement a 5% to 9% price increase across all product areas and all shipping locations. The increase is effective July 1, 2018 and will vary across product area and specific product families. Lubrizol attributes the increase to the higher cost of raw materials resulting from robust demand and continuing consolidation and closure of capacity. In addition, the price adjustments are said to be necessary due to significant increases in transportation costs.

Afton Chemical – On May 18th, Afton announced that effective June 18, 2018 it will increase prices on all performance additive products, from all source points. The price adjustment is said to be in response to higher raw material and transportation costs.

SK Capital buys SI Group

Combination with Addivant to Create a Global Leader in Plastic, Lubricant, Oilfield, and Rubber Additives

SK Capital Partners has acquired Schenectady, New York-based SI Group, a developer of performance additives and intermediates. No financial terms were disclosed. The deal is expected to close in the second half of this year.

SK Capital Partners, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, announced today an agreement to acquire SI Group, a leading global developer and manufacturer of performance additives and intermediates. Headquartered in Schenectady, New York, SI Group operates 20 manufacturing facilities on five continents with more than $1 billion in annual sales and over 2,800 employees worldwide.

SI Group is being acquired from the descendants of W. Howard Wright, who founded the company in 1906. At the close of the transaction, SK Capital will combine SI Group and Addivant, a leading global supplier of additives including antioxidants, antiozonants, inhibitors, polymer modifiers and UV stabilizers used by customers to improve the production and performance properties of polymers, plastics and rubbers. SK Capital has owned Addivant since 2013.

Barry Siadat, a co-founder and Managing Director of SK Capital, noted, “We are excited that SI Group will be joining the SK Capital portfolio of chemicals and pharmaceuticals businesses. SI Group has an excellent fit with the technologies and end markets of several SK Capital businesses, including Addivant in additives, Noramco in the area of pain management pharmaceuticals, and TPC Group in building block chemicals for certain SI Group products. These technology and market connections will enhance and accelerate the continued growth and transformation of SI Group. Additionally, by combining the complementary strengths of SI Group and Addivant, we will be creating a global technology and industry leader in plastic, lubricant, oilfield and rubber additives.”

“SK Capital is a firm known for its sound business practices, deep industry experience, and impressive portfolio of companies in the chemicals sector,” said Wallace A. Graham, Chairman of SI Group. “We are thrilled by the prospect of SI Group joining SK Capital, as it will enhance the company’s performance additives and intermediates business in the plastic, oil and gas, pharmaceutical and rubber sectors. We expect to see great things in the years ahead.”

The transaction is expected to close in the second half of 2018. Latham & Watkins LLP acted as legal counsel to SK Capital and committed debt financing was provided by JPMorgan Chase Bank, N.A., HSBC Securities (USA) Inc., Deutsche Bank Securities Inc. and Bank of America, N.A. Baker Botts LLP and HSBC Securities (USA) Inc. acted as legal counsel and exclusive financial advisor, respectively, to SI Group.

SK Capital is a private investment firm with a disciplined focus on the specialty materials, chemicals and pharmaceuticals sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital utilizes its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability as well as lower operating risk. For more information, please visit

SI Group is a leading global developer and manufacturer of performance additives and intermediates – solutions that are critical to the quality and performance of countless industrial and consumer goods. Founded in 1906 and headquartered in Schenectady, New York, SI Group operates 20 manufacturing facilities on five continents with more than $1 billion in annual sales, and over 2,800 employees worldwide. In 2017, SI Group received its second silver award for corporate social responsibility by EcoVadis, and is ranked among the top 10 percent of more than 30,000 worldwide companies. SI Group is The Substance Inside. For more information, please visit


ALPLA, Inc., a global manufacturer of rigid plastic packaging for a wide range of consumer products, announced that it will build a new plant with at least 50 jobs by the time it reaches full production in April 2019. The plant, located adjacent to the Dayton International Airport in Park 70/75 represents a $21 million investment in 154,000 square feet of an existing building which will serve current and new customers within ALPLA’s growing list of US locations.

ALPLA is one of the leading companies in plastic packaging. Around 19,000 employees worldwide produce custom-made packaging systems, bottles, closures and molded parts at 176 sites across 45 countries. The high-quality packaging is used in a wide range of areas, including for food and drinks, cosmetics and care products, household detergents, washing and cleaning agents, engine oils and lubricants. ALPLA celebrated its 60th anniversary in 2015.

According to Philipp Lehner, Regional Manager of ALPLA’s North American operations, “We are quite pleased to join the Dayton business community, and look forward to working with local leaders as we build our team and optimally develop plans for growth in the area.”

ExxonMobil Issues First-of-its-kind Base Stocks Industry Pulse Report: Decision Makers Weigh in on Trends, Industry Shifts

ExxonMobil published its inaugural, first-of-its-kind report on the global base oil industry, titled, ExxonMobil Basestocks 2018 Industry Pulse Report, in partnership with KRC Research, a global research consultancy. Based on viewpoints from hundreds of decision makers in the industry, the report uncovers insights into the ever-evolving market. The report is designed to help pinpoint industry drivers, evaluate the base oil landscape and explore current trends.

“We found the insights from the ExxonMobil Basestocks 2018 Industry Pulse Report particularly informative and because of this, we decided to share this broadly, in an aim to help educate the industry for the changes the future may bring,” said Ted Walko, Global Basestocks and Specialties Marketing Manager at ExxonMobil.

Group II Represents the Heart of the Market

The ExxonMobil Basestocks 2018 Industry Pulse Report revealed that nearly 75 percent of base oil decision makers view Group II base oils as the “heart” of the market. In addition, the report showed that:

  • Group II base oils are seen as the most important to the automotive (34 percent), marine (31 percent), industrial (37 percent) and commercial vehicle (41 percent) industries.
  • While base oil decision makers in Europe, the Middle East and Africa (EMEA) are least likely to say that Group II base oils are the heart of the market (60 percent), more than half (52 percent) said they would likely transition away from Group I and/or Group III base oils if they had access to a Group II manufacturer.

“We pride ourselves on having a strong lens into the industry and these results substantiate why we are committed to investing in expanded Group II supply through our three, strategically located refineries in Baytown, Texas; Jurong, Singapore; and Rotterdam, Netherlands,” Walko added.

Group I Proves to Remain Beneficial Despite Overall Decline

One-third of base oil decision makers said that while demand for Group I base oils has decreased at the highest rate, when compared to other base oil groups, they still see its importance:

  • Seventy-two percent admit the decline in Group I demand has had a significant impact on the industry.
  • Decision makers ranked Group I’s top three benefits with viscosity (54 percent) in the top spot, closely followed by its solvency (49 percent) and affordability (46 percent).

“We recognize that Group II is not a perfect fit for all applications and this report affirmed our confidence in Group I and the value it will continue to play in the base oil industry,” Walko explained.

Majority Says API Standards are Sufficient

According to the report, a majority believe the current API standards are sufficient for formulating and manufacturing engine oil:

  • Sixty-one percent of decision makers concurred, and slightly more than one-quarter (27 percent) disagreed, calling for an adjustment now.
  • Some believe (12 percent) that the standards should be adjusted within the next 10 years.

Base Oil Industry Can Keep up with Automotive Changes

The survey found that while more than three-fourths (77 percent) are concerned about the increased implementation of fuel economy and emissions regulations, they feel confident that the base oil industry will keep up:

  • Eighty percent asserted their confidence in the base oil industry’s ability to keep up with evolving regulations.
  • Two-thirds believe that Group II or Group III base oils can best handle an increase in more stringent fuel economy and emissions regulations.

For more industry insights, download the full report here.

About the ExxonMobil Basestocks 2018 Industry Pulse Report
The ExxonMobil Basestocks 2018 Industry Pulse Report surveyed more than 300 base oil decision makers from the following industries: additive manufacturers, lubricant manufacturers, industry associations and equipment manufacturers. The survey required an even split of at least 100 respondents from APAC, the Americas, and EMEA to ensure results encompassed a global perspective. The survey was also translated from English to Spanish, French, German and Standard Mandarin, as needed.

About ExxonMobil Basestocks
Building on its long tradition of technology leadership with its CORETM Group I slate, ExxonMobil continues to enhance the EHCTM product line to enable excellence for its customers. To this end, ExxonMobil technical experts designed the overall EHC product slate to meet performance requirements of a wide range of engine oil grades and other finished lubricant applications. The EHC Group II slate also allows customers to take advantage of industry base oil interchange and viscosity grade read-across guidelines to reduce formulation costs for many engine oil formulations.

For more information about product supply, visit ExxonMobil Basestocks. For key insights into the industry, along with exclusive updates on our global refinery expansion projects, subscribe to our quarterly newsletter today.

About KRC Research
KRC Research is a global full-service nonpartisan opinion research and strategy firm. A unit of the Interpublic Group of Companies, KRC Research offers the quality and custom service of a small firm with the reach of a global organization. For over 30 years, KRC Research has worked on behalf of corporations, governments, not-for-profits and the communications firms that represent them. Staffed with multidisciplinary research professionals, KRC combines sophisticated research tools with real-world communications experience. For more information, visit:

Round 3 Lubricant Price Increase Summary


Company Announced Date Effective Date Increase
Sinclair Lubricants 5/8/2018 7/1/2018 10 to 12%
Sunoco 5/16/2018 6/16/2018 4 to 6%
Advanced Lubrication Specialties 5/16/2018 6/16/2018 4 to 6%
CAM2 5/18/2018 6/16/2018 4 to 9%
Smitty’s Supply 5/18/2018 6/16/2018 4 to 9%
U.S. Lubricants, Commerce, CA 5/18/2018 6/17/2018 5 to 9%
Axel Royal 5/21/2018 6/24/2018 5%
Chemlube 5/22/2018 6/11/2018 5 to 9%
Maverick Performance Products 5/22/2018 6/18/2018 4 to 8%
Allegheny Petroleum Products 5/23/2018 6/18/2018 6 to 8% on bulk, additional 2% on drums and totes
Warren Distribution 5/23/2018 6/25/2018 4 to 8%




Click on the Timeline Below to See All Effective Increase Dates in 2018


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: