Another Price Increase, MDA Removes 303 THF From Sale

Amalie Announced Lubricant Price Increases

Amalie announced November 17, 2017 that it will increase the price of its oil and automotive chemical products by 32 cents a gallon and 4 cents a pound on all greases. The increase will take effect December 16, 2017. Amalie attributes the increase to continuous rising costs of additives, base oils, corrugated, plastic and transportation.

For more on price increases, scroll down.

Missouri Orders 303 Tractor Hydraulic Fluids Out of the State

THF303Pic11172017

As reported last week by the Petroleum Quality Institute of America, he State of Missouri Department of Agriculture Weights, Measures & Consumer Protection Division ordered that effective immediately Tractor Hydraulic Fluid (THF) labeled only as “303” can no longer be sold in the state, and the reason why is clear.

The John Deere (JD) 303 designation is 57 years old and has been obsolete for 43 years. In addition, there are no specifications available for 303 THF, and as such products making only “303” claims cannot be tested to assure compliance with any known specifications. Because of this, in the interest of protecting consumers, the State of Missouri ordered that “303” THF cannot be sold in the state.

Missouri’s banning the sale of “303” THF will have a significant impact due to the proliferation of 303 fluids in the market. These fluids are typically sold as low cost THFs and account for a very significant share of total THF sales. In fact, in some markets they are the leading type sold. Further, they are produced and sold by many lubricant manufacturers, marketers and retailers in the US and some have already received Stop Sale orders from the State of Missouri Department of Agriculture Weights, Measures & Consumer Protection Division.

Although not necessarily a shot heard around the world, the actions taken by the state of Missouri will most certainly send a clear message to marketers, retailers and farmers in other states. Because whereas the State of Missouri is the first to ban the sale of 303 THF, chances are others will follow.

Related Stories:

Source: The Petroleum Quality Institute of America

Round 3: Price Increase Summary

The following is a summary of the price increases JobbersWorld reported on for the third round of price increase is 2017

 

Lubricant Manufacturers Round 3

Company Announced
Date
Effective
Date
Increase
Kleen Performance Products 9/6/2017 9/6/2017 60 to 80 cpg
ExxonMobil 10/20/2017 11/20/2017 up to 6%
Chevron 10/24/2017 12/4/2017 up to 6%
Warren Oil 10/25/2017 11/17/2017 4% to 9%
Chemlube 10/26/2017 11/20/2017 20 to 25 cpg
Advanced Lubrication Specialties (ALS) 10/26/2017 11/13/2017 6 to 10%
CAM2 10/26/2017 11/15/2017 4 to 9%
Smitty’s Supply 10/26/2017 11/15/2017 20 cpg Bulk
25cpg Packaged Lubricants
3cpp Packaged Greases
Phillips 66 10/27/2017 12/1/2017 6%
Nu-Tier Brands 10/27/2017 11/17/2017 up to 6%
Sinclair Lubricants 10/27/2017 12/11/2017 up to 6%
Old World Industries 10/30/2017 11/13/2017 up to 8%
Warren Distribution 10/31/2017 11/27/2017 6 to 9%
Allegheny Petroleum   10/31/2017  11/8/2017 30 cpg
Petro-Canada 10/31/2017 12/1/2017 up to 6%
Valvoline 11/1/2017 12/1/2017 up to 5%
D-A Lubricant 11/1/2017  12/1/2017 up to 6%
CITGO 11/2/2017 12/4/2017 4 to 8%
SOPUS/Shell  11/6/2017 12/11/2017 up to 6%
BP Lubricants/Castrol (including industrial)  11/7/2017  12/11/2017 up to 6%
Total 11/9/2017 12/11/2017 up to 6%
Amalie 11/17/2017 12/16/2017 32 cpg Oil and Automotive Chemicals, 4 cpp greases
Pinnacle Oil 11/15/2017 5 to 7%
Increase

CLICK TO ENLARGE

Increase11212017R3


Quick Stats for the Three Rounds of Price Increases in 2017
Days from the Start of Round 1 to the Start of Round 2 63 Days
Days from the Start of Round 2 to the Start of Round 3 205 Days
Average Price Increase for Round 1 5.79%
Average Price Increase for Round 2 5.75%
Average Price Increase for Round 3 6.31%

CLICK TO ENLARGEIncreaseTable1231172017

CLICK HERE FOR A TIMELINE OF ALL THREE ROUNDS OF PRICE INCREASES IN 2017

Increase11212017Long

Why the Third Round of Price Increases?

 

Why the Third Round of Price Increases?

PIC11142017Rev2Price increases are not unusual in the lubricants business. In fact, this year alone we have seen three rounds. In most cases the increases are somewhat predictable since they are often driven by changes in the price of base oil. This is logical since base oil accounts for about 85% of the volume of material in motor oil and roughly 50 to 60% of its cost. The balance of the cost of goods belongs to performance additives, which are also impacted by higher base oil prices.

With that as a backdrop, the current round of price increases are understandable since there has been close to a 4% increase in the price of base oils since the start of the second round of price increases in April of this year. In addition, Lubrizol announced a temporary surcharge for its additives from September 27 through December 31, 2017 due the events surrounding Hurricane Harvey and the impact on the infrastructure of the petrochemical industry.

There are, however, other factors taken into consideration when price increases push through on finished lubricants; some having a very important impact on the third round of price increases. One in particular is the cost of freight.

Truck11142017The cost of freight climbed significantly this year due to a number of issues. The one with the greatest effect has, and is expected to continue to be, a severe shortage of qualified drivers. According to a report by the American Trucking Association (ATA), the driver shortfall may reach 50,000 positions by the close of 2017. Further, if the current trajectory holds, it’s forecast to balloon to nearly 175 thousand by 2026. Trucking companies are working to address the shortages by offering hefty sign on bonuses, higher compensation, and other perks and benefits to gain and retain drivers. In addition, they are pouring money into recruitment and training programs, all of which are driving up the cost of freight.

Freight costs are also ramping up due to regulations. In particular, the preparation trucking companies are implementing to assure compliance to the new federal regulation that requires the use of electronic logging devices (ELDs). In short, ELDs are digital logging devices that monitor driver hours of operation and help assure drivers adhere to the hours-of-service regulations (limits on the number of hours they can drive). In addition to the expense of planning, and the hardware and software required to implement ELDs, the regulations are said to exacerbate driver shortages by reducing availability.

Another impact on shipping costs, brings us back to August, when JobbersWorld reported on CSX Rail (the country’s third largest railroad) restructuring to rationalize infrastructure and consolidate operations. With this, CSX made regional cut backs in personnel and hump tracks, bringing its ability to handle between 60 and 80 cars a day in some yards, to as few as 35 or even 15 cars a day. Adding to the cut backs, CSX has also changed some of the shipping patterns, which sends some cars north before heading south, adding to delays. These factors encouraged blenders, distributors and others to find an alternative, yet more expensive and/or time consuming, means of transporting necessary products.

Importantly, increases in the cost of shipping impacts both the inbound and outbound freight charges incurred by lubricant blenders and distributors. As an example, higher freight costs mean blenders pay more to transport base oils from the rack to the blender’s lube plant. In addition, the freight costs to bring in additives increased. Distributors also pay more on inbound freight to transport finished lubricants from the blend plant to their storage and distribution facilities. On outbound freight, both blenders and distributors can incur higher shipping costs (when not FOB) to move finished lubricants from their warehouses to the end-user, retailer, or installer. And make no mistake about it, although a marketer operating a private fleet may not share the same cost burden as those moving freight by common carrier, costs can also increase as they compete to hire and retain drivers in the shrinking pool of qualified professionals. Furthermore, they too are seeing higher costs due to more stringent regulations.

But there is more.

bottles11142017Although higher base oil prices and freight costs have a big thumbprint on the third round of finished lubricant prices in 2017, increases in the cost of packaging materials, including steel, resin and paperboard, were also seen this year. As an example, Greif, a global leader in industrial packaging products and services, announced an increase on the price of steel drums of 5%, effective March 2017. Greif attributed the increase to escalating raw material and other input costs. Although not specific to Greif, some blenders say that where they used to pay $23 to 25 for a 55-gallon drum in 2016, they are now looking at prices closer to $30 a drum.

The price of corrugated boxes also increased significantly in 2017. There are a myriad of reasons for the increase including, an explosion at an International Paper factory at the beginning of the year that reduced US paper production by 5%. In addition, increased demand for boxes to fulfill e-commerce transactions, increases in export demand, higher freight costs, investment to meet regulatory requirements, and increases in labor and energy also has an effect. One of the more recent increases underscoring the higher price of packaging came when Georgia-Pacific reportedly announced in September a $50 a ton price increase on linerboard and a $60 a ton increase on corrugated to take effect on October 10, 2017

Although the price of resin used to manufacture plastic bottles is slowly returning to normalcy, production and supply line interruptions cause by Hurricane Harvey took its toll on resin prices. Polyethylene producers pushed through two rounds of price increases from August to October. When taken together, these increases totaled close to $0.10 a pound.

Adding to the higher cost of drums, pails, quart bottles, cartons and other packaging materials, blenders and distributors are also seeing the cost to procure these materials increase circling back to the higher freight prices.

So for those asking why we are seeing a third round of lubricant price increases in 2017, the answer is complex and goes well beyond increases in the price of base oil. It includes the higher cost of additives, transportation, packaging, labor, and others. These cost increases are real, and producers and distributors typically pass them on, and maybe a little more to improve their margins, by increasing the price of their finished lubricant if they want to stay in business and remain healthy.

Related Stories

More Price Increases in Round 3

uppricesWarren Distribution announced today that it will increase the price of all its finished lubricants by 6 to 9%. The increase will be effective as of November 27, 2017. Warren Distribution attributes the price adjustment to the increased costs of base oils, additives, operation, raw materials and transportation.

Old World announced on October 30, 2017 that it will increase the price on all finished lubricants by up to 8%. The increase will be effective as of  November 13, 2017. Old World attributes the increase to the higher price of raw materials used in the manufacturing and distribution of its products.

Nu-Tier Brands announced on October 27, 2017 a general price increase of up to 6% on all finished lubricants. The increase goes into effect November 17, 2017. Nu-Tier attributes the increase to the rising costs associated with raw materials and manufacturing.

Chevron announced on October 24, 2017 an  increase on all lubricating oils and greases of up to 6%. The increase goes into effect as of December 4, 2017. Marketers were advised that certain products may be be outside the range.

Pinnacle Oil announced an increase of 5 to 7% on packaged and bulk lubricants effective as of November 15, 2017.

Lubricant Manufacturers Round 3

Company Announced
Date
Effective
Date
Increase
Kleen Performance Products 9/6/2017 9/6/2017 60 to 80 cpg
ExxonMobil 10/20/2017 11/20/2017 up to 6%
Chevron 10/24/2017 12/4/2017 up to 6%
Warren Oil 10/25/2017 11/17/2017 4% to 9%
Chemlube 10/26/2017 11/20/2017 20 to 25 cpg
Advanced Lubrication Specialties (ALS) 10/26/2017 11/13/2017 6 to 10%
CAM2 10/26/2017 11/15/2017 4 to 9%
Smitty’s Supply 10/26/2017 11/15/2017 20 cpg Bulk
25cpg Packaged Lubricants
3cpp Packaged Greases
Nu-Tier Brands 10/27/2017 11/17/2017 up to 6%
Old World Industries 10/30/2017 11/13/2017 up to 8%
Warren Distribution 10/31/2017 11/27/2017 6 to 9%
Pinnacle Oil 11/15/2017 5 to 7%
Lubricant
Price
Increase

CLICK TO ENLARGE

Increase10312017

PQIA Publishes HDEO Timeline

On October 27, 2017 the Petroleum Quality Institute of America (PQIA) published a timeline to help educate consumers about the American Petroleum Institute (API) Service Categories for diesel engine oils.

Price Increases: Round 3

Price Increases: Round 3

uppricesChemlube announced today it will increase the price of its Savannah lubricants by $0.20 to $0.25 a gallon. These increases go into effect on November 20, 2017. Chemlube attributes the increase to the higher price of raw materials.

Advanced Lubrication Specialties (ALS) announced today that it will increase the price of its lubricants from 6 to 10%, effective November 13, 2017.

CAM2 announced today, a bulk and package price increase of 4 to 9% per gallon (depending on product). The increase is effective November 15, 2017. CAM2 says the increase is necessary due to the continuing increase in base oil prices.

Smitty’s Supply announced today a price increase of $0.20 a gallon for bulk, $0.25 a gallon for packaged lubricants, and $0.03 a pound for packaged greases. This increase is effective November 15, 2017.

Warren Oil announced on October 24, 2017 that it will increase the price of its finished lubricants and greases by 4 to 9%. The increase will be effective as of November 17, 2017 on orders placed on or after Monday, November 20, 2017. Warren attributes the price adjustment to the increased costs of base oils, additives, packaging and transportation.

ExxonMobil announced on October 20, 2017 that it will increase the price of its lubricants by up to 6% effective November 20, 2017. This increase is said to impact both branded and unbranded lubricants, including greases.

The first it what is now taking shape to be Round 3 in lubricant price increases for 2017 was announced by Kleen Performance Products on September 6, 2017. 

Champion Focuses on Mopar with 0W-40 Modern Muscle Motor Oil

4402H Modern Muscle 0W-40 ImageChampion Brands, LLC, a major player in development and manufacturing of racing and performance products, announced this week the unveiling of a new SAE 0W-40 premium full-synthetic motor oil specifically formulated to maximize the demands of today’s high performance street vehicles.

Champion Modern Muscle (CMM) SAE 0W-40 Motor Oil is an API SN licensed viscosity recommended for Dodge Viper 8.4L, Dodge Challenger 6.4L, Dodge Charger 6.4L, Additional Modern Dodge Hemi Motors, Jeep 6.4L, Nissan GTR 3.8L, and others, plus OEM / Engine Builder “Crate Motors” requiring a high performance 0W-40 viscosity.

CMM Motor Oils will provide outstanding levels of fuel economy performance, cleaning power and engine protection, even during extended oil change intervals. These high-performance oils are proven to significantly reduce wear and viscosity breakdown due to advancements in additive engineering.

CMM Motor Oils utilize Champion’s “Blue E.T.®” (Enhanced Technology) racing additive, and Champion’s TVS® (Thermal Viscosity Stabilizer) performance additive. These proprietary technologies deliver unmatched film strength at high temperature, better piston ring seal for maximum compression, and increase horsepower and torque in most engines.

These premium mixtures of synthetic base fluids and additives provide maximum durability and protection from wear and viscosity breakdown by including special lubricity modifiers, and premium anti-wear additives This unique robust formulation enables CMM Motor Oils to outperform all leading high performance synthetic oils.

About Champion Brands, LLC
Champion Brands, LLC, is a globally recognized industry leader in specialty lubricants for over 60 years. Champion also produces and blends over 350 products including fuel, oil, engine additives, and lubricants for the racing, automotive, heavy truck, agricultural, industrial, and specialty markets. For more information call Champion at 660-890-6231. Champion Brands, LLC; 1001 Golden Drive, Clinton, MO, or go to http://www.championbrands.com

Source: Champion Brands, LLC

Berkshire Invests in Pilot Flying J, Lubrizol Surcharge, New Valvoline Bottle, PQIA Summit Success

Berkshire Hathaway Invests in Pilot Flying J

shutterstock_443081914Berkshire Hathaway Inc. and Pilot Flying J jointly announced that Berkshire has made a significant minority investment in Pilot Travel Centers LLC, d/b/a Pilot Flying J. The Haslam family will continue to own a majority of Pilot Flying J and Jimmy Haslam will remain as chief executive officer. Pilot Flying J President Ken Parent and the Company’s management team will also remain in place. The Company will continue to be headquartered in Knoxville, TN.

Pilot Flying J is the largest operator of travel centers in North America, with more than 27,000 team members, 750 locations across the U.S. and Canada, and more than $20 billion in revenues. The investment will expand Pilot Flying J’s opportunities for growth, as the Company remains committed to delivering outstanding service for the trucking industry, professional drivers, local communities and interstate travelers across North America.

Under the terms of the agreement, Berkshire will acquire a 38.6 percent equity stake in Pilot Flying J. The Haslam family will continue to hold a majority interest with 50.1 percent ownership in the Company and FJ Management, Inc., owned by the Maggelet family, will retain 11.3 percent ownership until 2023. In 2023, Berkshire will become the majority shareholder by acquiring an additional 41.4 percent equity stake and the Haslam family will retain 20 percent ownership in the Company and remain involved with Pilot Flying J.

“Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America’s drivers,” said Warren Buffett, chairman, president and CEO of Berkshire Hathaway. “Jimmy Haslam and his team have created an industry leader and a key enabler of the nation’s economy. The Company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come.”

“Given the impeccable reputation of Warren Buffett’s Berkshire Hathaway, and our shared vision and values, we decided this was an ideal opportunity,” said Jimmy Haslam, CEO of Pilot Flying J. “As a family business that has evolved and prospered over the last six decades, we knew that any potential partner would need to share our commitment and have a proven track record as a long-term investor. We have that in Berkshire Hathaway – they believe in our strategy, support our team and are excited to see Pilot Flying J grow. We are honored and humbled to partner with them.”

James Haslam II, founder and chairman, Pilot Travel Centers LLC said, “Berkshire Hathaway’s investment in Pilot Flying J is a testament to our exceptional team members and their dedication that has made Pilot Flying J the great company it is today. Berkshire Hathaway’s commitment to keep Pilot Flying J in Knoxville was most important to us. The Knoxville community is an integral part of our company and our family. We are committed to continuing to make a difference in Tennessee, supporting and giving back to our communities here at home.”

The investment by Berkshire Hathaway reflects the success of a series of transformational milestones that have allowed the Company to evolve and strengthen its capabilities and market position over the last several decades. These milestones include the merger of Pilot with Flying J to create today’s company, as well as transactions with Marathon Ashland Petroleum, Williams, Speedway, Mr. Fuel and Speedway-Wilco that have grown the Company’s network.

BDT Company, LLC advised the Company and, as part of the transaction, BDT Capital Partners, LLC exited its minority equity investment in Pilot Flying J.

About Pilot Flying J
Pilot Flying J, the largest operator of travel centers in North America, is committed to connecting people and places with comfort, care and a smile at every stop. Headquartered in Knoxville, Tennessee, Pilot Flying J has more than 750 retail locations in 44 states, more than 100 roadside assistance trucks and growing as part of its Truck Care Program, 44 Goodyear Commercial Tire and Service Centers, and 35 Boss Shops. The Pilot Flying J network provides drivers with access to more than 70,000 parking spaces for trucks, 4,900 showers and more than 5,000 diesel lanes offering Diesel Exhaust Fluid (DEF) at the pump. Pilot Flying J is currently ranked No. 15 on Forbes’ list of America’s Largest Private Companies. Visit www.pilotflyingj.com for more information. Follow @pilotflyingj on Twitter and @pilottravelcenters on Facebook.

About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Source: Pilot Flying J

Related Stories:

Lubrizol Announced a Temporary Surcharge

Lubrizol advised its customers on September 27, 2017 that starting October 6th through December 31, 2017, there will be a surcharge of $10/100Kg, or $0.36/Gallon, or $0.05/lb on all Lubrizol additives excluding liquid and solid Viscosity Improvers shipped from the United States, Brazil, Canada, Korea, Mexico, and Singapore.

According to what blenders have been told, the temporary surcharge is a result of the events surrounding Hurricane Harvey and the impact on the infrastructure of the petrochemical industry. Importantly, these include interruption in the supply of chemical intermediates used in the manufacturing of additives.

Valvoline Unveils Cutting-Edge Innovation with Launch of Easy Pour Packaging

PastedGraphic-4Valvoline Inc. announced the retail launch of its newest innovation, the Easy Pour Bottle.

Valvoline worked alongside consumers to develop the game-changing design. The brand’s patent-pending Easy Pour Bottle will make changing oil easier while offering a simplified shopping solution for the automotive Do-It-Yourself (DIY) audience. “Valvoline’s goal for 151 years has been to use our expertise for the benefit of our customers. Each part of Valvoline’s Easy Pour Bottle has been engineered with our DIY consumers in mind – reimagined, redesigned, tested and proven to make changing oil easier, faster and cleaner,” said Heidi Matheys, Valvoline chief marketing officer. “Our technical team integrated an abundance of consumer field research and feedback, which ultimately resulted in this one unique design.” Highlights of Valvoline’s new Easy Pour Bottle include:

  • Easy Pull Tab™ – Makes opening the bottle clean and simple.
  • Precision Pour Spout™ – Provides accurate pour and clean cut off for a mess-free experience.
  • Anti-Glug Tube™ – Provides a glug-free pour for a faster, cleaner and easier oil change.
  • Resealable Overcap with No-Slip Grip™ – Helps prevent spillage and provides safe storage.
  • Centralized Handle – Makes for a more confident pick up, transport and pour.

EASY POUR PRESS RELEASE IMAGEThe brand is so confident in their newest innovation that they have issued a Satisfaction Guarantee at retailers nationwide, offering a 100-percent money-back promise to encourage DIYers to experience the bottle – and its advantages – for themselves. Valvoline has partnered with seven-time NASCAR Champion Jimmie Johnson to promote a series of entertaining videos showcasing the ease of use and cleanliness of the new packaging. Videos are now available for viewing at EasyPour.com. Additional motorsports athletes will participate in the series later this year.

“Our Easy Pour Bottle is one of the biggest packaging innovations in the history of Valvoline and was developed with integral feedback from DIYers and auto experts alike,” said Michelle Allen, director of marketing for Valvoline. “As we look to the future, we will continue to innovate in every area – from design to products and services – to meet the needs of our customers.”

About Valvoline™
Valvoline Inc. is a leading worldwide producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals. Valvoline ranks as the #2 quick-lube chain by number of stores and #3 passenger car motor oil brand in the DIY market by volume in the United States. The brand operates and franchises more than 1,070 Valvoline Instant Oil ChangeSM centers in the United States. It also markets Valvoline lubricants and automotive chemicals; MaxLife™ lubricants created for higher-mileage engines, SynPower™ synthetic motor oil; and Zerex™ antifreeze. Visit valvoline.com to learn more.

Lubrizol Opens New Drumming Facility and Warehouse at Painesville Township Plant

LubrizolThe Lubrizol Corporation announced the opening of a state-of-the art drumming facility and warehouse at its Painesville Township manufacturing facility, both of which are part of the company’s previously announced phased investment at the site. The total $70 million investment better positions the company to meet the changing demands of customers and ensures the integrity and quality of its products while reinforcing personal and environmental safety.

Construction on the 180,000 square feet combined buildings began in April 2015. With a focus on enhancing safety and business processes, the new buildings will be instrumental in reducing risk and achieving the company’s business objectives of improving effectiveness, efficiency and consistency.

“Historically, the Painesville Township site has been of great importance to our business, operating for more than 60 of the company’s nearly 90 years,” said Tom Curtis, incoming president of Lubrizol Additives. “This latest investment reinforces our commitment to the community by further ensuring the site as a key source in Lubrizol Additives’ global supply chain.”

With more than half of all Lubrizol Additives products worldwide containing at least one component manufactured at the Painesville Township site, adding new manufacturing capacity and updated automated packaging capabilities was a necessity. Furthermore, these efforts are important to ensure product integrity and to improve the overall safety and efficiency of handling product drums and totes.

LubrizolImgPlant

From left to right: Joshua Pennock (Painesville Township Trustee), Mike Manary (Painesville Township Administrator), John Hamercheck (Lake County Commissioner), Jerry Cirino (Lake County Commissioner), Dan Troy (Lake County Commissioner), Eric Schnur (Lubrizol), Craig Hupp (Lubrizol), Mark Rantala (Lake County Port Authority), Tom Curtis (Lubrizol), Matt Joyce (Lubrizol) and Mike Vaughn (Lubrizol)

“With our new drum filling facility, we will be able to improve safety by minimizing the manual packaging of drums, reducing packaging time for a single batch by more than 50% and minimizing the number of times a drum is handled by more than 70%,” commented Craig Hupp, Lubrizol Painesville Township plant manager. “And, with 100% indoor storage provided by our new warehouse, we will improve the quality and appearance of packaged products delivered to our customers. All of these improvements will be a tremendous value to our overall organization.”

To commemorate the opening, earlier today Lake County Commissioners presented Lubrizol with a certificate of recognition followed by a formal ribbon cutting ceremony at the facility. In attendance were several of the Lake County Commissioners and Painesville Township Trustees, as well as representatives from Lake County Port Authority. Representatives from Lubrizol included Eric Schnur, chairman, president and chief executive officer; Tom Curtis, incoming president of Lubrizol Additives; Mark Sutherland, Lubrizol corporate vice president of global communications and public affairs; Mike Vaughn, Lubrizol corporate vice president, operations; Matt Joyce, vice president of Lubrizol Additives sales and marketing; and Craig Hupp, Lubrizol Painesville Township plant manager.

About The Lubrizol Corporation
The Lubrizol Corporation, a Berkshire Hathaway company, is a market-driven global company that combines complex, specialty chemicals to optimize the quality, performance and value of customers’ products while reducing their environmental impact. It is a leader at combining market insights with chemistry and application capabilities to deliver valuable solutions to customers in the global transportation, industrial and consumer markets. Lubrizol improves lives by acting as an essential partner in our customers’ success, delivering efficiency, reliability or wellness to their end users. Technologies include lubricant additives for engine oils, driveline and other transportation-related fluids, industrial lubricants, as well as additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for home care, personal care and skin care products and specialty materials encompassing polymer and coatings technologies, along with polymer-based pharmaceutical and medical device solutions.

With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,300 employees worldwide. Revenues for 2016 were $6.5 billion. For more information, visit Lubrizol.com.

Source: Lubrizol

The First PQIA Regional Lubricant Quality Summit was a Success!

With nearly 100 in attendance, the first regional PQIA Lubricant Quality Summit on September 14th, in Wickliffe, Ohio, was deemed a success by attendees, speakers, supporters, and sponsors.

Attendees2The theme of the PQIA Summit was “Taking it to the Streets” and by all indications, it hit its mark by raising awareness about the quality and integrity of lubricants in the market and shining a light on both good and bad motor oils, transmission fluids and other lubricants.

Panel1

From left to right: Douglas Rathbun, Robert DeRubeis, Ronald Hayes, and John Stegierwald

Adding to that, the summit included informative presentation from weights and measures from the states of Missouri, Illinois, and Michigan about their programs to protect consumers from off-spec/mislabeled motor oils, automatic transmission fluids, and antifreeze/coolant. Further, Ron Hayes, Director, Missouri Department of Agriculture, Division of Weights, Measures and Consumer Protection, spoke to what the state of Missouri is doing to address concerns about the proliferation and dangers of obsolete tractor hydraulic fluid (THF) in the market. In addition, the Summit included informative presentations from industry thought leaders about the new CK-4 and FA-4 diesel engine oil specifications, developments in PCMO to address pre-ignition in T/GDI engines, and the growing complexity of ATFs.

Click HERE for more.

Report on Retail Lubricant Prices

JobbersWorld Brings Back its Retail Price Tracker

jwrptFor those who have been with JobbersWorld since its inception in 2001, you may remember we provided a retail price tracker “Stats and Facts” in each of our monthly issues. Whereas JobbersWorld continued to track retail prices over the years, the price tracker was not carried over when we switched from a print to an electronic version of JobbersWorld.  Well its back!

Moving forward, JobbersWorld will report on retail prices at the leading big box store and prices at five of the leading auto parts stores. The tracker includes prices by brand and category (synthetic, synthetic blend, high mileage, and conventional).

CLICK FOR MARCH 2017 PRICES

42017pricechrt

Summary: Round 2 Price Increases

Although Amalie was the first to announce a lubricant price increase in round 2 of 2017, CAM2, Allegheny Petroleum, Kleen Performance Products were the first to move with each having price increases taking effect on April 17th. Valvoline is the last to move with an effective date of June 1 for its price increase.

The lubricant price increases announced by majors and independent lubricant manufacturers in Round 2 of 2017 ranged from 3 to 12%. The average increase is 4.3% for the majors, and 6.5% for the independents, and the combined average is 5.8%.

With a range of 19 to 51 days, there is an average of 31 days from the time a company announced a price increase to the effective date of the increase. The longest span from the announced to effective date is seen with the majors at an average of 40 days. The average time span for the independents is 25 days.

IncreaseChart4182017

table201

Table 2

PRICE INCREASES REPORTED ON BY JOBBERSWORLD
IN ROUND 2 OF 2017

Lubricant Manufacturers Round 2

Company Announced
Date
Effective
Date
Increase
Amalie 3/17/2017 4/21/2017 24 cpg lubes, 3 cpp grease
Calumet 3/20/2017 4/20/2017 4 to 6%
Castrol (excluding industrial) 3/22/2017 5/1/2017 up to 3%
CAM2 3/23/2017 4/17/2017 20 to 35 cpg
Warren Distribution 3/24/2017 4/24/2017 6 to 9%
Smitty’s Supply 3/24/2017 4/24/2017 4 to 6%
Chemlube 3/27/2017 4/20/2017 4 to 7%
Pinnacle Oil 3/28/2017 4/18/2017 5 to 9%
Reliance Fluid Technologies (RFT) 3/28/2017 4/28/2017 6 to 9%
Old World Industries (PEAK) 3/28/2017 4/21/2017 up to 8%
Allegheny Petroleum 3/28/2017 4/17/2017 20 to 35 cpg
Warren Oil Company 3/28/2017 4/24/2017 4 to 9%
Kleen Performance Products 3/29/2017 4/17/2017 5 to 12%
ExxonMobil 3/31/2017 5/10/2017 up to 4%
Royal Mfg 4/1/2017 5/1/2017 4 to 8%
Chevron 4/3/2017 5/15/2017 4 to 6%
Advanced Lubrication Specialties (ALS) 4/3/2017 4/24/2017 5 to 9%
Nu-Tier Brands 4/4/2017 4/24/2017 4 to 7%
Phillips 66 4/5/2017 5/10/2017 4 to 6%
Petro-Canada 4/5/2017 5/5/2017 up to 6% (excluding white oils and process oil)
SOPUS/Shell 4/10/2017 5/15/2017 up to 4%
CITGO 4/11/2017 5/15/2017 4 to 6%
Valvoline 4/11/2017 6/1/2017 up to 4%

 Increase3282017Big2 

2017 Price Increase Timeline – Lubricant Manufacturers
Round 2
Increase4132017

%d bloggers like this: