China and India are the second- and third-largest lubricant markets, but they handle their used oil differently, according to a report from Kline & Co. India burns most of what it collects as industrial fuel, while China focuses more on rerefining to produce base stocks.
Ruisike Co., a subsidiary of Chinese automaker Chery, began construction this month on a used lubricant rerefinery in Fanchang, Anhui province. The facility is expected to be completed in early 2020 and will have capacity to process 40,000 metric tons per year of used oil.
Right after finishing construction of its second rerefinery, Australias Southern Oil Refining says it may have to close its first if the country enacts proposed cuts in consumer-funded subsidies for waste oil recycling.
Italian rerefiner Viscolube agreed to develop a waste oil rerefinery in cooperation with Chinese steelmaker Baosteel. Construction of the facility, which would have capacity of 40,000 metric tons per year, hinges on Baosteel relocating its Shanghai steel factory.
China has over 400 facilities capable of recycling used lubricants, but many are small and dont produce base oils, according to a Chinese rerefiner who said the countrys waste oil management system needs standardization.
Australia will continue to support oil recycling through its consumer-funded rebate program after vetoing a proposal to cut benefits.
United Kingdom-based Hydrodec Group this week unveiled details of the sale of its Australian hydrotreater - to its biggest shareholder, who will have the plant dismantled and shipped to the U.K.
With no domestic virgin base oil production and an abundance of recyclable used oil, Bangladesh could pose opportunities for rerefiners. But players say the sector will likely remain paltry without better technology and more government support.
Southern Oil Refinings recently relocated rerefinery includes a hydrotreater, and SOR says the experience of operating it on behalf of joint venture partner Hydrodec will help prepare the company to make API Group II and III base oils for the Australian market.
CleanOil Investment and a subsidiary of Jebsen Group inaugurated their joint venture used oil rerefinery and lubricant blending plant on Saturday in Zhuhai, China.
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