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December 16, 2015

Volume 17 Issue 52

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Chemtura to Double Italy Additives Output

Chemtura Corp. will build a second lubricant antioxidant plant at its Latina, Italy, site, doubling its capacity there by the end of 2016.

The Philadelphia, Pa.-based specialty chemicals provider did not disclose the project’s cost or capacity, but said the expansion will double the site’s output of Naugalube-branded alkylated diphenyl amine liquid antioxidants, which are specifically formulated for lubricants.

The project, which Chemtura announced yesterday, is driven by market demand for lube antioxidants, which are projected by analysts to grow at a rate of 5 percent through 2018.

Rising fuel efficiency standards are pushing the automotive industry toward downsized turbo-charged engines with higher power densities – spurring higher operating temperatures that tend to accelerate oxidation in engine oils. This in turn drives demand for antioxidants which slow oxidation and degradation in lubricants, Chemtura noted in the press release.

“As the transportation sector gears up for the latest requirements in greater fuel efficiency, the market is indicating a step increase in antioxidant demand in 2017 and 2018,” said Kerim Wewer, the company’s head of asset management for Europe, the Middle East and Africa. “Our efforts are part of a long-range capacity expansion program that started in 2014 to ensure a continuous supply of high-quality antioxidants to the industry.”

ADPAs also reduce emissions, which is important in light of emissions control mandates from the U.S., the European Union, Japan and other countries and regions.

Chemtura also produces ADPAs at its Elmira site in Ontario, Canada, which underwent expansion in 2014 and 2015. It noted that it will continue expanding ADPA capacity according to demand.