Clean Harbors Enters Lubricants Business
Their new Kleen Performance Products business unit serves the fast-growing market for high-performing lubricants used to reduce engine emissions.
Posted: November 17, 2015
Clean Harbors, Inc. (Norwell, MA), a leading provider of environmental, energy and industrial services throughout North America, has announced the formation of Kleen Performance Products (Richardson, TX), a new business unit dedicated to the research, development, sales and distribution of high-quality engine oils, lubricants and other automotive and industrial products.
This new business will build on the company’s 30-year record of innovation in oil refining processes and leadership position in the North American market for renewable oils and lubricants. It will offer a portfolio of products that include current EcoPower® branded lubricants and base oil produced with re-refined oil from Safety-Kleen Systems, Inc. (Richardson, TX) and the Performance Plus line of full synthetic, synthetic blend and other finished lubricants. These diverse offerings position the new business unit to serve the fast-growing market for high-performing lubricants tailored for modern engines, while supporting the reduction of greenhouse gas emissions and carbon footprints.
“The formation of this new business unit will enable us to capitalize on untapped growth opportunities in an expanding market and dedicate more resources to product development, sales and customer service,” said Alan S. McKim, the chairman and chief executive officer of Clean Harbors. “We are well-positioned for long-term growth, with demand for superior lubricants being driven by the modernization of industrial machinery, the resurgence of manufacturing and the next generation of more fuel efficient cars and trucks. Additionally, the creation of this standalone business and brand allows the Safety-Kleen organization to concentrate exclusively on its core business of environmental services, including the collection of approximately 220 million gallons of used oil annually.”
The total global market for engine oils and lubricants is projected to grow from $140 billion in 2013 to $162 billion in 2019, according to research firm Markets and Markets. About 56 percent of this increase is expected to come from motor oil, engine lubricants and other transportation products.
Innovator and Leader in Using Oil as a Renewable Resource
Kleen Performance Products base oil and EcoPower finished lubricants use twice-refined oil manufactured through a innovative proprietary process that reduces greenhouse gas emissions by up to 80 percent. These products also require up to 85 percent less energy to produce than lubricants made from virgin crude oil, because the used oil has already been refined. It takes 42 gal of virgin crude oil versus less than two gal of used oil – to produce a single gallon of high-quality motor oil. Consequently, each gallon of renewable oil that is re-refined represents multiple additional gallons that do not need to be imported, reducing the United States’ dependence on foreign oil.
The U.S. generates approximately 1.4 billion gal of used engine oil annually that can be renewed and reused versus burning it, inappropriately disposing of it or relying on new crude oil. A fleet of cars or trucks using one million gallons of EcoPower engine oil would reduce greenhouse gas emissions by 3,363 metric tons, equivalent to the CO2 absorbed in 85,230 trees grown for ten years in an urban environment.
“Our oil is approved or complies with requirements set by major manufacturers of gas and diesel engines. It is used successfully by government, for-hire, private and local mass transit fleets, among others,” said Jerry Correll, the president of Kleen Performance Products. “The global goal to reduce greenhouse gas emissions and carbon footprints is expected to further drive demand for renewable oil and expand its application into other transportation and industrial areas.”
EcoPower engine oil currently is used around the globe in U.S. military vehicles, the largest fleet in the world. The EcoPower brand also is the official oil partner of Roush Fenway Racing (RFR), the winningest team in NASCAR history, and EcoPower engine oil is used in all RFR racecars. The Performance Plus line of full synthetic, synthetic blend and conventional motor oils is expected to support accelerated growth of the company’s blended products. Demand for full synthetic oil is increasing to meet regulatory standards for lower greenhouse gas emissions and improved fuel economy.
All of these brands meet or exceed stringent North American standards for motor oil that include American Petroleum Institute (API) performance classifications, as well as those of the Society of Automotive Engineers (SAE) and International Lubricants Standardization and Approval Committee (ILSAC). They also meet or exceed the standards of major original equipment manufacturers (OEMs), including General Motors’ dexos1™ requirements.
The formation of this new business unit continues the implementation of recommendations stemming from a comprehensive strategic review of its business portfolio that Clean Harbors announced earlier this year. The review recommended that the company refocus its businesses on what each does best in order to maximize value. In addition to creating the new business unit and refocusing Safety-Kleen on environmental services, the company is also in the process of carving out its Oil and Gas Field Services and Lodging Services segments as a standalone publicly traded company, with the intention to rename its current “Oil Re-refining and Recycling” reporting segment as Kleen Performance Products within its filings with the Securities and Exchange Commission (SEC).
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