News from Petroleum Trends International, Inc.

Your needs, your concerns, your outlook. No bias, no fluff and no punches pulled. Whether it's buy backs or brand battles, allocation of co-op ads, operating costs or turf wars, Jobbers World keeps you on top of the issues that matter to YOU: The Lubricant Marketers!

Hasco purchased the lubricant blending facility previously owned by Castrol Industrial in Vernon, California

Hasco Oil Company, Inc. of Long Beach, California has purchased the lubricant blending facility previously owned by Castrol Industrial in Vernon, California. The purchase will include production, packaging and analytical equipment and the facility will operate under the name Pacific Precision Formulators, PPF. The purchase was completed in early July, 2010 and was coupled with the purchase of Castrol Industrial's
forge lubricant product line.

PPF is state-of-the-art operation, has an annual capacity of 2.5 million gallons and provides excellent access to the Southwestern U.S., Mexican and Pacific Rim markets. PPF is committed to retaining Vernon's ISO 9001 certification and expects to be formally recognized before the end of the year. PPF has secured a number of manufacturing contracts that will allow it to commence production immediately. The laboratory will not only conduct quality control for finished products, but will have the capability to analyze field samples.

"Hasco's focus on serving the Industrial sector has given us the insight to meet its particular objectives.
The ability to manufacture lubricants in-house is a logical extension of our customer service and positions Hasco perfectly for a successful long-term presence in the market", remarked company president Renee Bjorklund. Ms. Bjorklund continued to say, "Hasco deeply appreciates Castrol Industrial's assistance in this acquisition and looks forward to partnering with them in future projects."

Hasco's purchase of the forge lubricant line includes product formulations, manufacturing and laboratory equipment, contracts and inventories. Effective Q2 2010, all products will be branded under the Hasco Forge name. Hasco Oil intends to manufacture products in the Los Angeles area and use a combination of direct and distributor sales to promote the Hasco Forge line. Hasco believes the forge business will benefit from a rebounding global economy and the investments in the asset purchase meets its long-term objectives.

Hasco Oil, a distributor of petroleum products, was founded in Long Beach, California in 1965 and has served the lubricant needs of the Southern California industrial market with Hasco and other branded products.

Afton Chemical Announces a New PCMO Additive that Exceeds GF-5

Afton Chemical announced that it is ready to launch a new passenger car motor oil (PCMO) additive. This additive is among the first to come to market in anticipation of the new GF-5 standard set by the International Lubricant Standardization and Approval Committee (ILSAC), which goes into effect in October, 2010.

According to Ian Atherton, Marketing Manager for Engine Oils, the additive is also the most cost effective solution on the market for meeting both GF-5 requirements and the dexos1™ standard from GM. "Meeting GF-5 was an important goal. But we're also proud that this same product has been formally approved by GM to manufacture licensed dexos1™ engine oil, with no modifications, boosters or changes in treat rate of the additive package," said Atherton.

Atherton added that the GF-5 additive will cover more viscosity grades than Afton's GF-4 product, and will minimize the need for special base stocks. "It's not only cost-effective and has greater base oil flexibility, it also exceeds the GF-5 spec in a number of key performance areas. That will give our customers a way to differentiate their products from the competition," said Atherton. A pour-point depressant (PPD) has also been added to the formulation, simplifying logistics for Afton customers.

Atherton also pointed to two important tests, which he says demonstrate the additive's ability to exceed the new specification. In the Sequence IIIG test for oil robustness, the Afton additive performed nearly 20% better than the GF-5 requirement, and also exceeded the GM dexos1™ requirement across a range of industry base stocks. And in the Opel RNT test, used by GM for their dexos1™ specification, the product controlled camshaft wear to 3 to 4 atoms/hour, 65% better than the specification limit.

Atherton said, "Afton has always had a tradition of staying ahead of technology. We knew that GF-5 and dexos1™ would present challenges, so it's especially gratifying to not only meet those specifications, but also exceed them in a number of measures. We're happy to be able to give our customers what they need before they need it. And, we're pleased to provide our customers the technology that they can use to supply new, versatile fluids for OEM factory fill and service fill."

Afton Chemical Corporation is a wholly-owned subsidiary of NewMarket Corporation (NYSE:NEU). Afton Chemical develops and manufactures petroleum additives that boost the performance of fuels and lubricating oils to achieve increased efficiency, power and durability in machinery, vehicles, and other equipment. From custom-formulated chemical blends to market-general additive components, Afton Chemical technology helps fuels burn cleaner and more efficiently, engines run smoother, and machines last longer. For more information on Afton Chemical and its product offerings, visit us at www.aftonchemical.com.

dexos1 is a trademark of General Motors Corporation.

Ashland Sales Incresed by 16% over June 2009

... While total lubricant volume increased by 1 percent versus the June 2009 quarter, with the onset of the summer driving season, volumes increased 6 percent sequentially. Same-store sales at Valvoline Instant Oil Change increased by 10 percent over the prior June quarter, and international operations also contributed to sales and volume growth. Click here for report.

ExxonMobil and Caterpillar Ink a Supply Agreement

ExMo continues on the go with OEMs

Caterpillar announced a new five-year supply agreement in which ExxonMobil will produce and supply Caterpillar® oils to Caterpillar factories and dealers worldwide. ExxonMobil has supplied private label lubricants to Caterpillar since 1987.

ExxonMobil will be the exclusive supplier to Caterpillar worldwide for 30 Cat® lubricants for engines, transmissions, hydraulics and final drives.

"Caterpillar and ExxonMobil bring together world-class product research and have created lubricant technologies that directly enhance the life of Cat equipment," said Bill Springer, Caterpillar vice president with responsibility for the Product Support Division. "These oils have been designed to work as a system with the machine and engine to provide the highest performance, while lowering the operating costs for Caterpillar customers."

"Market acceptance has proven the value of the Caterpillar and ExxonMobil alliance. The Caterpillar brand oils supplied by ExxonMobil have delivered an average growth rate of 10 percent in sales over the past 10 years, compared to less than 2 percent for the rest of the lubricant industry," Springer said.

"Through cooperative research, our teams have designed and produced lubricants that meet Caterpillar's high performance standards," said Jim Hennessy, vice president - sales, ExxonMobil Lubricants & Specialties. "Before the oils are produced, the products and performance specifications are tested and approved by Caterpillar. Our global relationship with Caterpillar includes a dedicated team to support the Caterpillar program, which includes providing technical and marketing training to all Cat dealers and facilities -- worldwide. ExxonMobil and Caterpillar are already working together to develop the next generation of oils. We are currently exploring engine oils that will meet even lower emission requirements and other machine lubricants that will extend component life."

For 80 years, Caterpillar Inc. has been building the world's infrastructure and, in partnership with its worldwide dealer network, is driving positive and sustainable change on every continent. With 2004 sales and revenues of $30.25 billion, Caterpillar is a technology leader and the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. More information is available at www.cat.com.

North American Lubricants and Its Customers are Seeing Green

After nearly two years of research and development, and close to one year getting the story out, North American Lubricants (NAL) says its new PureGreen line of Earth Friendly Lubricants is turning to gold for both NAL and its customers.

According to Shane Terry, President of North American Lubricants, "Re-refined 'Green' motor oil is rapidly developing into the next successful service category for the installed, oil change market." Further, Shane says, "Consumers, more than ever, want an earth-friendly alternative. Service providers benefit from market differentiation, positive public perception, improved customer retention and increased fleet sales." And, when "Green" lubricant is available at the same price as others, Terry says, "It's encouraging to see that consumers go for the green - they care about the environment."

Interesting, Terry says, the PureGreen product line started out as one formulated to meet the demands of municipalities. Since then, however, it has "morphed" into a mainstream product in high demand by fast lubes, new car dealers, taxi and rental car fleets, garbage disposal companies, and other fleets operating both diesel and gasoline engine. "With full OEM approvals, optimum performance, tangible environmental benefits and competitive economics, there is truly no downside with our PureGreen product line", Terry said, "Green lubricants have the potential to be the future of our industry." North American Lubricants says its PureGreen Lubricants product line supports its corporation's mission to deliver new solutions to the marketplace and to maintain its commitment to proactive environmental responsibility.

Click here for more.

The JobbersWorld Forum Goes Live!

The JobbersWorld Forum is the first and only real-time communications platform designed for lubricant jobbers and other industry stakeholders.

Membership in the JobbersWorld Forum is free. To register and participate in the forum, click on the picture above or the link that follows. We look forward to you joining and contributing your thoughts to the JobbersWorld community. JobbersWorld Forum

THE FOLLOWING IS A SAMPLE OF COMMENTS ALREADY ON THE JOBBERSWORLD FORUM...

Question: Is ConocoPhillips using DM2 or Visual Supplier? The post prior to yours seems to say CP is using DM2 MAS 90 / 200 software.

To answer your question about ConocoPhillips system, they, like I would guess all majors, use SAP. Most majors opted into SAP during the 1990's as way to avoid the so-called millennium bug. DM2 would not be able to support all of ConocoPhillip's business requirements. Their connection to DM2 and Visual Supplier is through electronic data feeds from/to marketers that flow through intermediate software capable of communicating with multiple systems.

The answer to your question concerning data conversion is yes. Data conversion is probably the most difficult aspect of bringing up a new back-office computer system. Conceptually, conversion is a simple process of translating data from the existing system to the format of the new system. This step is usually referred to as "mapping". Once or as the mapping is completed, processes, manual and automated are engaged to load the new system with the translated data from the old system. Simple, right.

There are a number of problems that arise or become apparent during the conversion phase of implementation. At the top of the list of problems in my opinion is a less than thorough understanding, held by implementation personnel, of the business and thus the meaning of the data. This always leads to faulty mapping and errors in the conversion process that may not appear until you have bill a 100 or so customers out of the new system. Often times the old system simply does not maintain data that is needed to support key applications in the new system. Or the data in the old system does not support the logical structure of the new system, etc, etc, etc. ....

Data conversion is a big deal and should be carefully considered when looking at moving to a totally new platform. It is the dirty work and usually costs a lot more than the implementers estimate.

Written and published by experts, Jobbers World is brought to you by Petroleum Trends International, Inc.