Daubert Chemical provided its customers advance notice of the company’s intent to increase the price of its line of calcium sulfonate greases across all regions, in some cases up to 6.2% for the year 2020, effective on all invoices dated January 1, 2020 or later.
Matthew McGinnis, Director, Commercial Development at Daubert, says, “As a point of pride, we remain one of the most stable suppliers of calcium sulfonate greases in all of North America. Both from a quality standpoint, and a lead-time standpoint. But furthermore, we have also focused on minimizing the price fluctuations of our products, allowing our customers to price their rebranded greases with the confidence to aggressively pursue opportunities without the fear of an eroding margin due to unpredicted cost increases from us. In fact, it has been almost 2 years since our last price increase, even though most posted base oils have increased almost 10% in that time, and many finished lubricant manufacturers have raised prices once, if not twice, as a result.”
McGinnis expects this increase will be sufficient for the foreseeable future to cover increasing costs, noting that, “Daubert has experienced tremendous growth in recent years, resulting in greater synergies in its grease manufacturing process. As a result, the company is in a position to continue to offset raw material cost increases through greater efficiencies and overhead coverage across a larger volume of product.”
For those who may not be familiar with Daubert Chemical, Daubert’s calcium sulfonate grease capacity far exceeds the estimated combined production for all producers in the North American market, which according to the 2018 NLGI Grease Production Survey, is estimated at 32 million pounds. The company more than doubled its capacity in 2014 with a major expansion at its plant in Chicago and it plans to announce additional upgrades to existing capacity and capabilities in 2020.
Whereas the majority of Daubert’s calcium sulfonate production is consumed in its manufacturing of rust-preventive coatings to OEMs in the global automotive industry, greases represent a strategic and growing segment of its business. As such, Daubert’s additional calcium sulfonate capacity coming on stream is expected to drive its continued evolution into a global-scale specialty lubricants manufacturer.
McGinnis says, Daubert’s strategy is to market its grease to lubricant manufacturers and marketers as a private label offering that can complement their existing product lines. By adding a high-performing grease differentiated from competition, while maintaining a reasonable price point, lubricant marketers can win new accounts and develop a lasting relationship through which additional products in their portfolio can be offered. Currently, Daubert supplies calcium sulfonate grease to four different continents out of their main production location in Chicago.