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Additive Prices Up
7th Inning Stretch?
Safety-Kleen is looking at #3
Knapp named SVP
CAREER OPPORTUNITIES

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July 7, 2011    

JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS...  The First and Only Independent Newsletter to Focus on Lubricant Distributors.


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Round 4 for Additives - Afton and Infineum Up Prices
Effective August 1st, Afton Chemical announced it will push through a price increase for most lubricant additive products. As with other additive companies announcing increases, Afton attributes the need for this increase to the continuing rise in raw material cost driven by increasing global demand and constraints on chemical feedstock capacity.

In addition to Afton's increase, blenders say Infineum advised them late last week that they too will increase the price of its lubricant additives.

When taken together with Lubrizol's recent increase, it's clear the additive companies are into their fourth round of price increases in 2011. And based on what JobbersWorld is hearing, this fourth round of additive increases bump additive prices up by 7 to 9%.

7th Inning Stretch, or a Squeeze Play? 


JobbersWorld is once again hearing from lubricant marketers and independent blenders asking the same question, that is, will the majors push through a fourth round of price increases on finished  lubricants in 2011 like the independents have, and if so, when?

 

Although often unspoken, the reason they ask is well known to most in the lubricants business. In short, it's because the majors supply the base oil the independents need to survive. And when the majors push through base oil price increases, independent lubricant manufactures have little choice but to pass the increases on. Whereas this would be business as usual in most manufacturing segments, it's more complicated in the lubricants business. This is because in addition to majors selling the base oil independent blenders need to exist; they also compete with them in the finished lubricants business.  

 

For this reason, independent lubricant manufacturers are very sensitive to the time lag between when they and the majors move finished lubricant prices.  

 


 

So let's look at some facts. Based on what we have seen in 2011, majors moved prices on average 30 days after the independents. But as shown above, the time lag has stretched from 22 to 31 and 34 days, respectively for the first three rounds of price increases in 2011.  Based on this, it's little wonder why many are now asking if the majors are simply indulging in a 7th inning stretch, or  running a squeeze play in the fourth round of increases.  

 

Click here to let us know what you think? 

Safety-Kleen to Conduct Preliminary Engineering for new Re-Refinery in Southern U.S. 

 

Addition of third re-refinery could expand processing capacity by 45 million gallons 

Safety-Kleen Systems, Inc., announced plans  to move forward with preliminary engineering for its third North American used oil re-refinery, to further solidify the company's position as the world's leading re-refiner.    

"Our two existing re-refineries, in Breslau, Ontario, and East Chicago, Indiana, have already processed more than 2.5 billion gallons of used oil into high-quality lubricants and byproducts," said Safety-Kleen CEO and President Robert Craycraft.  "Acceptance of our re-refined products, particularly EcoPower, is well established and growing among corporate fleets, consumers, and government agencies. We want to extend our leadership in the market," Craycraft said.

 EcoPower is premium-quality re-refined motor oil and is certified to meet or exceed the quality standards set by the American Petroleum Institute (API) and the Society of Automotive Engineers.  

Safety-Kleen is evaluating several potential sites in the Southeast and Gulf Coast regions, according to Dave Sprinkle, the company's Executive Vice President, Oil Re-Refining.   

"We have several locations under evaluation, each of which makes good sense in terms of used oil availability, existing infrastructure and logistics," Sprinkle said.  "Now we have to determine which site makes the most economic sense."   

 

Safety-Kleen began producing high-quality re-refined oil products in 1988, and has steadily increased its processing capacity to today's level of approximately 145 million gallons of used oil feed per year. The company's Breslau plant is currently undergoing a 10 million gallon per year capacity expansion.  The new facility will increase Safety-Kleen's overall capacity to approximately 200 million gallons of used oil feed annually.  

 

Curt Knapp Named Senior Vice President and Chief Marketing Officer for Safety-Kleen


Curt Knapp has been promoted to Senior Vice President and Chief Marketing Officer for Safety-Kleen effective July 1.  Prior to this role, he was the company's VP of Oil Sales.  Curt possesses an extensive background in marketing and the oil business.  He will be responsible for the Safety-Kleen brand.  With this focus, he will promote our value position and mission to the market and company.  Functions reporting directly to Curt will include product/services marketing, pricing, R&D, technology, marketing communications and corporate/internal communications.

 

Curt will develop Safety-Kleen's overall marketing strategies and long-term goals.  His team will work collaboratively with Sales to drive company revenue.  He will focus on customer segment selection and market penetration. 


Business Opportunities

   

Blue Mountain Professional features a complete line of vehicle maintenance products for the professional installer. We are seeking additional distributors to sell one of the fastest growing automotive lines in the industry. For information regarding this exciting opportunity please contact Chris Alexander at Old World Industries, LLC - 800-323-5440.   

 

 

 

Select Distributor Opportunities for Service Pro and Purus Products

The Association of Independent Oil Distributors (AIOD), North America's first and largest buying group of independent lubricant wholesalers is seeking additional distribution for its Service Pro automotive and Purus commercial brands in select US and Canadian market areas. For distributor information contact AIOD at 970-249-6336, via email at aiod@newwestmarketing.com or visit the web at www.service-pro.com and www.purusproducts.com

 

 

Career Opportunities

 

Posted June 17, 2011 

Gulf Hydrocarbon, Inc.

       - Outside Sales Representative, Territory: Louisiana and East Texas

       - Outside Sales Representative, Territory: Southern Illinois and Western Missouri

 

Gulf Hydrocarbon, Inc. is the premier provider of biodiesel to the petroleum industry.  We are seeking to fill two territory sales positions.

 

Responsibilities include maintaining contact with all biodiesel customers, locating new customers.  In addition, outside sales representatives will negotiate and manage all contract and spot sales of biodiesel out of terminals and refineries.  Summarize and analyze supply economics for posted price, spot and long term sales.

 

This position can be entry level (with college degree) or can utilize experience in sales, marketing, petroleum transportation or logistics as well as some accounting knowledge. 

 

The pay is a salary plus performance bonus, car and communications allowance.  The company provides a 401K plan with company match.  Health care option provided.

 

Qualified candidates may submit resume to: career@gulfhydrocarbon.com AA/EOE

 

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Posted June 3, 2011 

Thomas Petroleum  

  • Chemical Sales position in the North Louisiana market
  • Sales position in the Corpus Christi, TX market

Thomas Petroleum, one of the nations leading Chevron distributors for 15 years and Huntsman Chemical's preferred distributor is seeking highly motivated and creative sales candidates. We are seeking to fill a Chemical Sales position in the North Louisiana market. This individual is responsible for outside Chemical Sales/Service to natural gas markets utilizing chemical processes and products (TEG, DEA, MDEA, etc). Additionally, we have a Rig Sales position in the Corpus Christi, TX market. This individual is responsible for petroleum and fuel sales to our oilfield based business.

 

These jobs require some travel and participation in an on-call rotation. We offer an excellent salary package including attainable bonus opportunities, insurance, 401k, vehicle allowance and more. Qualified candidates may submit resume to: mmartino@clthomas.com. AA/EOE.

 

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Posted June 9, 2011

Lubricating Specialties Company

  • Lubricants and Fluids Sales position in the Greater Los Angeles California market

Lubricating Specialties Company a well-established, leading blender and packager of oils, greases and industrial fluids on the West Coast, is seeking highly motivated and creative sales candidate.  LSC is seeking to fill a Territory Sales Manager position in the Los Angeles area. The successful candidate will be responsible for outside oil, grease and industrial fluid sales to an existing base of independent Jobbers. Duties will also include expanding the current customer base by adding new accounts and expanding product offerings in those accounts.

 

LSC offers an excellent salary package including commission, health insurance, 401k, fuel and cell phone reimbursement. AA/EOE. Qualified candidates may submit resume to: acastillo@lubespecialties.com  


 

 

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