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1 May-July 2013 | LUBEZINE MAGAZINE
PLUS: ENI BRAND RETURNS TO EAST AFRICA P.4
VOL .7 • MAY-JULY 2013
W W W . L U B E S A F R I C A . C O M
Lubrication in the food and beverage industry P.4Focus on Pan African lubes brands P.26
PLUS
USED OIL AS FUEL FOR GLASS WORKS IN KENYA
MAIN FEATURE
CEMENT PLANT LUBRICATION
1 May-July 2013 | LUBEZINE MAGAZINE
CONTENTSN E W S • I N D U S T R Y U P D AT E • N E W P R O D U C T S • T E C H N O LO GY • C O M M E N TA R Y
MAY-JULY 2013
W W W . L U B E S A F R I C A . C O M
VOL 7
9 | COMPANY FEATURE
Hashi Energy launches new range of Eni’s lubricants
10 | LOGISTICS FEATURE
Flexitanks: Logistic challenges turned into competitive advantages
14 | ENVIRONMENT FEATURE
Environmental Auditing for Service Centres
16 | IN OTHER WORLDS
Castrol Partners with TomTom to study impact of stop-start driving
Eni renews its technology, industrial and commercial partnership with Piaggio
20 | TECHNOLOGY FEATURE
Lubrication in the food and beverage industry
23 | GLOBAL MARKET FEATURE
World demand for lubricants to hit 43.9m metric tons in 2017
INSIDE REGULARS
24 ERC PLANS TO REGULATE THE LUBES MARKET
2 | Editor’s Desk
4-6 | The Market Report
British Petroleum (BP)
returns to Kenya market
Eni (formerly Agip)
re-enters the East African
lubricants market
Total Kenya holds Regional
Sugar Millers Conference
KenolKobil, BP feud over
Castrol distribution rights
Nigerian lubricant
producers association
protests high base oil tariff
8 | Questions from our
readers
26 | Focus on Pan African
lubes brands
ANSELM CROZE: INNOVATOR WHO USES OIL WASTE TO MAKE BEAUTIFUL OBJECTS
18 | RECYCLING FEATURE
Cement plants lubrication
TECHNOLOGY FEATURE
12
2 LUBEZINE MAGAZINE | May-July 2013
EDITORIAL
A s the African continent celebrates 50 years of
AU (formerly OAU), we have found it fi tting to
feature Pan African lubricants brands that have
emerged over the years. These brands although
currently commanding a small market share, are
likely to emerge as strong players in the coming
years. In this edition, we feature MOGAS and SYNERGY.
In many African countries, governments have put in place
mechanisms to encourage value addition, which to some
extent lead to technology transfer in addition to creating the
much-needed jobs. Punitive taxation on imported fi nished
products is one way that these governments push for local
lubricant production and that has contributed signifi cantly to
the emergence of Pan African brands. This has not been without
teething problems as the protest by LUPAN (Nigerian Lubricant
Producers Association) over low tariffs of imported fi nished
lubricants has shown.
Without a doubt, the next phase in the development of the
lubricants market in Africa is the stringent control on the
quality of products used. As evidenced in Kenya, the Energy
regulatory commission (ERC) is stepping in to help streamline
the market along this line. We expect this to be the norm in
many regions as customers, especially the middle class in the
automotive sector, become more discerning and consequently
demand high quality products to match their ultra-modern
machines.
Our cover article for this edition is dedicated to sustainable
environmental protection. Using waste oil to fi re up glass melt-
ing furnaces, Kitengela Hot Glass demonstrates how to create a
viable business using this by-product of the lubrication process.
The fact that the glass used is recycled makes this venture truly
green and a model worth emulating across the continent.
Thanks to our loyal advertisers, professional contributors
and a 3000 plus strong readership, Lubezine continues to be the
premier source of information for the region.
Happy reading
Africa @ 50; what is the future for lubricants market?
EDITOR’SDESKVOL 7 • MAY-JULY 2013
BP re-enters the East AfricaTurn to P.4
Publisher:Lubes Africa Ltd
Editor: Susan Mwangi
Design & Layout: Andrew Muchira
Contributors: Irina Lagereva
Samuel Macharia
James Wakiru
Joseph Ndung’u
Andrew Monk
Nyakundi Nyagaka
Lucie Wanjohi
Photography: Bettercom Media services
Lubezine library
Art Direction: Zeus Media Ltd
Advertising & Subscription:
www.lubesafrica.com
Subscriptions: Lubezine is free to qualified subscribers who are involved in the lubricants industry as manufacturer’s end-users, marketers and suppliers to the oil industry. Lubezine is a quarterly publication of Lubes Africa Ltd. All rights reserved. No part of this publication may be produced or transmitted in any form including photocopy or any storage and retrieval system without prior written permission from the publishers.
1 May-July 2013 | LUBEZINE MAGAZINE
PLUS: ENI BRAND RETURNS TO EAST AFRICA P.4
VOL .7 • MAY-JULY 2013
W W W . L U B E S A F R I C A . C O M
Lubrication in the food and beverage industry P.4Focus on Pan African lubes brands P.26
PLUS
USED OIL AS FUEL FOR GLASS WORKS IN KENYA
MAIN FEATURE
CEMENT PLANT LUBRICATION
Without a doubt, the next phase in the development of the lubricants market in Africa is the stringent control on the quality of products used
Joseph Ndung’u
3 May-July 2013 | LUBEZINE MAGAZINE
LUBEZINE?
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WHO IS READING
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The readership includes:Lubezine is a free magazine to qualified subscribers
To advertise, contact Lubezine sales team at:
Focusing on Africa’s lubrication needs
Issue 002October-Decemberwww.lubesafrica.com
Aviation Lubricants
Gulf Energy Launches Lubricants
BEARING FAILURE and lubrication
Focusing on Africa’s lubrication needs
Issue 002October-Decemberwww.lubesafrica.com
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Inside Kenya’s lubricants capital
The basics of oil additives P.16
Inssiide Kennyya’sya’sKirinyaga
RoadPLUS: THE MARKET REPORT P.4
NOT FOR SALE
W W W E A F R I C A C O M
FOCUS ONF
A guide to buying lubricants P.10NEW LOOK!
4 LUBEZINE MAGAZINE | May-July 2013
to facilitate its intention to
establish a nationwide pres-
ence.
Before the fi rms exit in 2007,
it had a joint venture with Shell
with assets that included 130
retail stations, aviation fuels,
lubricants and had 17 percent
of BP’s shares in the Kenya
Petroleum Refi neries, which
were sold to Essar.
The venture was driven out of
the Kenyan market on account
of reduced profi t margins,
rising competition and price
THEMARKETREPORTNEWS • BRIEFING • NEW PRODUCTS • TECHNOLOGY
RE-ENTRY
B ritish Petroleum (BP)
has begun seeking
out distributors for its
Castrol branded lubricants as
it makes plans to return to the
Kenyan market after it quit
the country in 2007 following
its decision to sell its Kenya
business.
Earlier, the fi rm acquired the
Castrol brand in 2002 but later
sold its Kenyan business in 2007
to Shell Petroleum Company,
which also sold 80 per cent of
its Africa operations to Vitol in
2011.
In a May notice, BP
announced that applications
were open for the distributor-
ship of Castrol and BP lubri-
cants to cover automotive,
industrial and mining sectors,
adding that the prospective
distributor would need Ksh. 84
million and enough transport
British Petroleum (BP) returns to Kenya market
Questions from our ReadersSee also P.8
BP announced that applications were open for the distributorship of Castrol and BP lubricants to cover automotive, industrial and mining sectors
cap that promoted big oil
marketing fi rms out of Africa
as they shifted focus to the
more lucrative exploration and
production activities.
However, it may not be
smooth sailing for BP as
KenolKobil has already moved
to court in a bid to block re-entry
of Castrol brand through a
different agent. KenolKobil
has been distributing Castrol
lubricants alongside their own
brand of Kenol lubricants. .(See separate story)
E ni lubricants formerly
Agip lubricants have
made a re-entry into
the East African lubricants.
Eni which previously traded
as Agip has a long history in
the region. Before it exited the
market in the 90’s, it oper-
ated as a fully integrated oil
company in the region with
fuel depots, service stations
and a lubricants blending
plant in Tanzania.
Through its locally
appointed agent, Hashi
Energy, ENI lubricants plan
to establish a presence in
Kenya, Uganda, Rwanda,
Burundi, South Sudan and
Eastern Democratic Republic
of Congo.
The lubricants were
offi cially launched in Nairobi,
Kenya in a colourful cer-
emony attended the minister
in charge of the petroleum
sector, Mr. Davis Chirchir and
Eni Vice President, Mr. Luca
Arcangeli.
In the recent past many
multinational Lube brands
that had earlier exited from
the region have been trooping
back through appointed
distributors. These include
brands such as Chevron and
BP..
Eni (formerly Agip) re-enters the East African lubricants market
5 May-July 2013 | LUBEZINE MAGAZINE
DISTR IBUT ION
F rom 10th – 12th June
2013, Sugar millers
drawn from Kenya,
Sudan, Ethiopia, Tanzania,
Zambia, Uganda, Mauritius and
Zimbabwe descended on the
lakeside town of Kisumu, Kenya
to attend a conference on Sugar
mills lubricants. The forum was
offi cially opened by Mr. Daniel
Mayieka - Specialties Manager on
behalf of Total Management.
The conference was facilitated
by Ms. Christele Halwajian and
Mr. William Duchatelle from
Total Headquarters in France and
the Total Regional Lubricants
Manager, Mr. Mesfi n Ejigu
from Ethiopia assisted by Mr.
Kenneth Koskei, the Lubricants
Training Manager from Kenya.
Two major companies have clashed over a lubricant brand’s distribution rights in the Kenyan market in a dispute that has threatened to touch off a legal battle pitting the oil marketing multinationals against each other.
In May, British Petroleum (BP) claimed distribution rights for Castrol brand lubricants in the country, prompting resistance from KenolKobil
Total Kenya holds Regional Sugar Millers Conference
KenolKobil, BP feud over Castrol distribution rights
CONFERENCES
These regulations will aff ect the whole lubricants industry from new entrants, existing lubricants
businesses to other complimenting sectors like lubricants transporters and storage facilities
Turn to
Also present was Total Kenya
Lubricants Sales Manager, Mr.
Julius Kinoko.
Kisumu was chosen as the host
town due its strategic location
and proximity to the Kenyan
Sugar belt and also due to the
strong presence of Total in the
region.
All the Sugar factories in
Kenya that are in Operation are
located in the western region
namely; Nzoia, Butali, Mumias
and West Kenya Sugar in the
Western block; Kibos, Muhoroni
and Chemelil in Central Nyanza;
Sony Sugar and Sukari industries
in South Nyanza and Transmara
Sugar located in the Mara Region.
All these sugar factories
use Total Lubricants and were
with the latter insisting it is the legal distributor of the brand in Kenya.
BP left Kenya in 2007 when it sold its Kenyan entity to Shell Petroleum Company, but has since announced that it is seeking Castrol lubricant brand distributors in Kenya with its return to the market, a move KenolKobil has vehemently dismissed as illegal.
‘In our view your
represented in the seminar.
Africa is ranked 6th in the
world in sugar production after
Brazil, India, EU, China and
Thailand. Africa produces 8 Mil-
lion tonnes of sugar per year with
South Africa, Egypt and Sudan
being the dominant producers.
The diverse geographical
representation in the conference
offered a rich forum for exchange
of ideas and sharing of experienc-
es. The theme of the conference
was “TOTAL LUBRICANTS - your
competitive advantage in the
sugar industry”. The Mill being
the most critical equipment in
the sugar factory is often called
the “Heart” of the factory.
The fl agship product was
CERAN GEP- special grease for
action to seek the distributorship of Castrol products in Kenya is misplaced and clearly in contravention and breach of the arbitration award and court order,’ said Jacob Segman, KenolKobil Chairman in a May 21 letter to BP’s CEO, Bod Dudley. KenolKobil was awarded the right to supply Castrol lubricants by the initial owner of the brand, Burmah-Castrol of
P.24
Scotland. However, the deal went sour in 2000 when BP bought Burmah-Castrol for Sh.384 billion in a development that cast a shadow of uncertainty over KenolKobil’s distribution rights of Castrol products.
But KenolKobil said it went to court in 2000 and successfully obtained a court order holding the handover of the supply rights to the new owner, Shell Kenya.
‘The court ordered that Kobil continues to dis-tribute Castrol lubricants in the whole of the East African region’, said Mr Segman in the letter he wrote to Mr Dudley on the matter, adding that he (Mr Segman) was ready to meet and discuss the matter so as to avoid an unnecessary legal dispute in the courts. .
Additional information from the Business Daily
sugar mill bearings, mill pinions
and crystallizer worm gears.
The conference comprised of
presentations from the facilita-
tors and a participatory group
workshop.
The facilitators made presenta-
tions on World Sugar Market,
Lubricants knowledge and
new technologies, Food Grade
Lubricants (with Nevastane,
the Total Food Grade lubricant
range), Biodegradability, Total
Lubricants Services-Maintenance
Software; TIG XP5 and Oil
Monitoring: ANAC.
On the fi nal day, the par-
ticipants were taken on factory
tours of Sukari Industries in
Ndiwa and Transmara Sugar in
Kilgoris. .
Sugar cane transport
in western Kenya.
6 LUBEZINE MAGAZINE | May-July 2013
T he Lubricants Producers
Association of Nigeria
(LUPAN), which has
over 32 companies as members,
has warned the Nigerian Federal
Government that proactive
action must be taken to curb
the upsurge of sub-standard
fi nished lubricants and the high
tariff imposed on imported base
oil into the country.
In a petition to the Minister
of Trade and Investment, the
association said the high tariff
on base oil, which it puts at 10
per cent, is the same as that on
imported lubricants, both being
housed under the same H.S
CODE “2710.1939”..
LUPAN says “this situation
puts the lubricant manufactur-
ers at a disadvantage in the
sense that after the payment of
the 10 per cent tariff, while the
importers of fi nished lubricants
sell their products directly to the
consumers without extra costs;
the licensed blenders through
the process of blending incur
further expenses adding value
to the base oil by introduction
of additives and the employ-
ment of labour, cost of energy
consumed while running their
respective blending plants and
the high rate of interest accruing
from loans from local fi nancial
institutions. This in turn raises
the cost of the locally blended
lubricant thereby making the
same unattractive to end-users”.
Nigeria has since remained
a large importer since the fi re
incident of 1995 at the Kaduna
refi nery’s base oil plant and
since then has been 100 per cent
dependent on the import of base
oil which constitutes about 90
per cent of fi nished lubricants.
The association also
explained that sub-standard and
adulterated fi nished lubricants
from other countries such as
Dubai and Turkey have been on
the increase, stressing that labo-
ratory analysis report of most of
such imported lubes reveal non
compliance to specifi cations
and standards both local and
international.
It described some of the
lubricants as outright recycled
oil with little or no additives
introduced into it.
“These lubricants are
imported with undervalued
invoicing, deluge the markets
and sold at a cheaper rate
than the genuine locally
produced ones thereby creating
unfavourable conditions for
the locally produced genuine
lubricants, which go through
further process of manufacture,
consequently selling at a
higher cost than their foreign
counterpart”, it added.
LUPAN stated that there
should be an urgent review of
duty tariff on base oil down to
fi ve per cent and that base oil
should be separated from the
current H.S CODE “2710.1939”
which houses it along with
fi nished lubricants, and given
its own H.S Code and solicits
for a higher tariff regime for all
imported lubricants to 50 per
cent minimal duty in order to
protect the local industry.
Presently there are thirty two
lubricant plants in Nigeria duly
licensed and fully operational
while about seven new plants
are soon to become opera-
tional..
Courtesy of OEM/Lube News
BASE O I LS
THEMARKETREPORTNEWS • BRIEFING • NEW PRODUCTS • TECHNOLOGY
Nigerian lubricant producers association protests high base oil tariff
7 May-July 2013 | LUBEZINE MAGAZINE
Environmental management is co-ordinated by the National Environmental
Management Environment (NEMA) in Kenya.Energie bewegt uns
1-2 April 2014 in StuttgartInformationen über: Kraft- und Biokraftstoffe Schmierstoffe Additive Grundöle
Get-together – Abendevent
Information about: Fuels and Biofuels Lubricants Additives Base Oils
Get-together
Simultanübersetzung
Simultaneous translation
dt.-engl. / engl.-dt.
Weitere Informationen / More information: www.umtf.de
Veranstalter / Organizer: UNITI-Mineralöltechnologie GmbH · Jägerstraße 6 · D-10117 Berlin
Ansprechpartner / Contact person: Edwin Leber / Carmen Fogel · Phone: +49 (0)30-755-414-400
Fax: +49 (0)30-755-414-474 · Mail: [email protected] / [email protected]
Phot
o: F
UC
HS
EURO
PE S
CH
MIE
RSTO
FFE
GM
BH
Veranstalter / Organizer Kooperationspartner /Cooperation Partners
Anmeldung /Registration
Medienpartner / Media Partners:
8 LUBEZINE MAGAZINE | May-July 2013
We encourage technical questions from our readers. Lubezine’s team of lubricants specialist will be on hand to answer your queries. E-mail: [email protected]
Synthetic engine oil, being thinner, flows faster to the components to be lubricated and therefore greatly reduces wear to the engine
FROM OUR READERSQUESTIONS O U R E X P E R T S T A C K L E
A L L Y O U R Q U E R I E S
Cement plants lubricationSee also P.12
I understand there are some applications that use hydraulic oils without zinc. Why?
Zinc-free hydraulic oils are intended for
systems with very high fi ltering require-
ments. These oils are less susceptible to
hydrolysis (decomposition of a chemical
compound by reaction with water)
and have good demulsifi cation and
airing characteristics. Modern systems
increasingly use servo valves which
often require very fi ne fi lters. The zinc
free product offers low aquatic toxicity,
reducing the environmental impact in
the event of a spill. Use of this product
gives an early measure in stopping
the ingression of zinc and other heavy
metals entering the waste water system
in the event of any kind of spill which is
disastrous.
I have been a regular user of mineral based engine oils and now I am considering switching to syn-
thetic lubricants which I under-stand are more expensive. What benefits am I likely to enjoy from using synthetic engine oils?
There are several advantages of using
synthetic engine oils:
• Synthetic engine oil may be thinner,
which reduces resistance in the engine
and improves fuel consumption.
• Thinner synthetic engine oil fl ows faster
to the components to be lubricated and
therefore greatly reduces wear to the
engine. This is advantageous especially
during the start-up where most wear is
expected to occur.
• It can also reduce the noise of an engine
with hydraulically operated valves.
• Synthetic oil evaporates less easily at
high temperatures, reducing oil con-
sumption.
• Synthetic oil is thermally more stable,
enabling it to cope longer and better
with heavy loads.
• In the long run, synthetic is cost effective
and reduces overall maintenance costs.
• It is the Lubricating fl uid for the friction
discs during start/stop operation
• It is a lubricating and working fl uid in the
automatic transmission hydraulic system
• ATF also works as a Coolant.
What are inhibitors in coolants and how do they aff ect the coolant operation?
An inhibitor is a substance which acts
as a process retardant. In coolants, it is a
chemical additive to protect metal surfaces
from corrosion. Some common types
include borates, phosphates, benzoates,
nitrites, silicates, etc. Inhibitors should be
in suffi cient concentration to provide the
necessary protection for metals to avoid
corrosion. .
What are the functions of ATF?
Automatic transmission fl uid
(ATF) is a versatile lubricant
used in automatic transmission systems,
power steering and other automotive and
industrial applications. Given the specifi ci-
ties of automatic transmissions operation,
ATF oils have the following functions:
• Acts as power transmission from the
engine to the mechanical part of the auto-
matic transmission
9 May-July 2013 | LUBEZINE MAGAZINE
For more than 60 years, Eni has been selling Agip branded lubricants around the world
BRANDS
That the East African lubricants market
and indeed most of Africa’s lubricants
market is on a growth trajectory is in
doubt. In recent years we have witnessed
many multinational brands that had previ-
ously pulled out of the region citing low
business margins, coming back through
appointed agents.
July 2, 2013 … one of Kenya’s leading
indigenous oil marketing companies, Hashi
Energy launched - in partnership with Eni
(previously Agip) -a new range of lubricants
that include Automotives, Industrial, Marine,
Greases and Specialties products that sat-
isfy lubrication requirements of any type of
machine and industrial plant.
The lubricants manufactured by Eni will be
distributed by Hashi Energy through its broad
network in Kenya, Uganda, Rwanda, Burundi,
South Sudan and Eastern Democratic Repub-
lic of Congo.
Speaking during the launch ceremony,
Hashi Energy Chief Executive Officer, Dr.
Mohamed Adan noted that the lubricant
lines which cover many applications like cars,
motorbikes and trucks have been developed
to specifi cally meet all technical needs and
requirements of the Kenyan market and other
East African markets.
“At a time of great technological specializa-
tion, in which the evolution of engines has led
to the lubricant becoming a real component
of the engine, the vast and diverse range of Eni
lubricants is able to provide the right response
to the lubrication needs of every engine and
the needs of each user,” he said.
“The Kenya Vision 2030 Blue Print has
identifi ed the Energy sector as a key founda-
tion and one of the infrastructural “enablers”
upon which the economic, social and political
pillars of this long-term development strategy
will be built. It is therefore imperative that
players in this sector consistently bring on
board initiatives that will support these pil-
lars,” said the Chief Guest Mr. Davis Chirchir,
Cabinet Secretary for Energy and Petroleum.
For more than 60 years, Eni has been selling
Agip branded lubricants around the world.
They have recently been rebranded “Eni”
F E A T U R EC O M P A N Y
Hashi Energy launches new range of Eni’s lubricants
About Hashi EnergyHashi Energy is a private company and one of the oldest indigenous oil marketing companies in Kenya with over 20 years in operation. It invests primarily in petroleum imports and exports, bulk trading, petroleum depots, distribution and service stations. With the aid of cutting-edge technologies and modern infrastructure, Hashi Energy aims to consolidate its position as the market leader in the Petroleum sector in the region. The company has grown to become a major player in the Oil business supplying over 480 million liters’ of petroleum products annually to the East African region. With a capacity to supply 600 million litres per year, Hashi Energy is a stable brand with operations in Kenya - Mombasa, Nairobi, Eldoret and Kisumu; Uganda, Tanzania, Rwanda, South Sudan, Zambia and DRC. www.hashienergy.com
About EniEni is a major integrated energy company committed to growth in the activities of finding, producing, transporting, transform-ing and marketing oil and gas, electricity generation and sale, petrochemicals, oilfield services, oilfield construction and oilfield engineering. In 2012, Eni was ranked 17th in the Fortune Global 500 list of the world’s largest companies. Eni has global operations in 90 countries and employs approximately 78, 000 people.
following a decision to consolidate all opera-
tions and products under one brand. Eni has
always played an active role in the research
and production of high performance lubri-
cants for all types of engines.
According to Hashi Energy, Eni lubricant
production cycle operates in accordance
to a certified quality management system
in conformity with standard UNI EN ISO
9001:2008 and certifi ed Environment Man-
agement System in conformity with stand-
ard ISO 14001. Further, Hashi Energy/Eni
lubricants and services are backed by highly
qualifi ed technical manpower both from Eni
internationally and Hashi Energy locally that
ensures outstanding technical back up and
support services to customers that provide
security in total customers’ satisfaction and
peace of mind. .
L-R Davis Chirchir Cabinet Secretary Energy and Petroleum and Luca Arcangeli Vice President ENI, Mohamed Adan CEO Hashi during the launch.
10 LUBEZINE MAGAZINE | May-July 2013
B etter logistics create benefi ts for local
business and are vital for its competi-
tiveness. A decade ago, the word
‘fl exitank’ was not familiar, even among those
quite knowledgeable about bulk packaging
technology. However, since 2000, there has
been unprecedented expansion of this new
and effi cient method of transporting liquids.
The growing popularity of fl exitank has been
demonstrated by the increasing numbers of
flexitank shipments and volumes shipped
globally.
The fl exitank market has been expanding
at a rate of 20% per annum on average over
the last seven years. This is due not only to
the product’s obvious advantages over other
packaging/transporting options, but also to
certain market trends:
Depressed economies are a major market
driver of increased fl exitank usage because
fl exitanks are cheaper than alternatives and
most companies are under pressure to reduce
cost of delivered product.
The fast growing emerging markets often
lack logistics infrastructure. Flexitanks
present a cost- and time-effi cient method of
transporting non-hazardous liquids to desti-
nations which cannot be reached by tankers
or larger volumes carriers. Environmental
concerns and regulations put pressure on
companies, forcing them to reduce volume
of packaging and the impact of their supply
chains on the environment. Flexitank is
single-use packaging and part of its material
can be recycled.
The weakness of key consumer sectors
(such as automotive) forces industrial con-
sumers in the lubricant industry (which
represents about 43% of fl exitank deliveries)
to reduce stocks in order to limit exposure to
market volatility and to order smaller volume,
i.e., using fl exi-tank rather than regular cargo.
Other major fl exitank consuming indus-
PRODUCT HANDLING
F E A T U R EL O G I S T I C S
By Irina Lagereva, Marketing and PR at Shamrock Shipping and Trading
Shamrock Shipping and
Trading is an international non-aff iliated trader and distributor, focused on petroleum products and petrochemicals, including Group I, II, and III base oils, pale oils, advanced additives and finished lubricant. Our core business is supported by a number of related services, which include sourcing, trading, processing, refining, transportation, storage and financing. This diversity enables us to control the whole process of product movement from producer to end-user, guaranteeing fast and reli-able deliveries to all of our customers world-wide. Shamrock is an ISO certified company (ISO 9001:2008), all Shamrock products are registered in accordance with REACH legisla-tion, Shamrock is a member of North American ILMA (Independent Lubricant Manufacturers Associa-tion) and UEIL (Independent Union of the European Lubricants Industry.
Shamrock has its regional representatives in Africa, Central and South America and Southeast Asia. In 2012 Shamrock has started its representative off ice in Canada, ON in addition to its Cyprus-based head off ice. In 2013 a new off ice will be open in Dubai (UAE).
Flexitanks: Logistic challenges turned into competitive advantages
tries – like wine and vegetable oils, with
about 20% and 27% of the market respec-
tively – depend on sourcing product largely
on a global basis. With the current economic
slowdown, the manufacturers are looking
for cost-effective ways to handle shipping
and logistics.
Modern fl exitanks overcome many of the
problems associated with ISO tank contain-
ers, IBCs, or drums. Our customers prefer
fl exitank because of its major advantages:
Bigger capacity: Due to its fl exibility, every
inch of container space is available allowing
the shipment of 31% more content than with
IBC, totes, and drums.
Delivery period is as fast as bulk cargo.
No signifi cant cash involvement: No price
risk (prompt loading and short transit time).
Lower positioning costs: Less need for pack-
aging, handling, and loading; and no return
freight costs.
‘Eco-friendly’ packaging: The polyethylene
material of the flexitanks can be recycled.
Indeed this plastic material can be melted
down and re-used almost indefinitely for
making products.
Flexitank can be used for storage: Either
temporary or even as an alternative to a per-
manent storage tank.
Integrated service: Shipping containers
can be transferred to trucks, so fl exitank can
serve as a cost-effective door-to-door package
for deep inland and diffi cult to reach destina-
tions.
11 May-July 2013 | LUBEZINE MAGAZINE
Environmental Auditing for Service Centres
See also
P.14
Flexitank is a flexible container with a standard capacity of 14,000–24,000 litres, installed in a 20-ft. ISO ship-ping container. Depending on its construction material, flexitanks can be used for transporting most types of non-hazardous cargos. While being unloaded, heating pads are used for temperature-sensitive cargoes.
Flexitanks are constructed both single-layered and multi-layered. They can be made from diff erent materials but typically polyethylene. In addition, top/bottom options for loading and discharge are available.
Shippers should speak to a flexitank operator to determine the most suitable type of flexitank to ship their particular product. Flexitanks were introduced in mid-1970s by U.K. shippers.
The first users of flexitanks were chemical suppliers, looking for lower tare weight compared to metal drums, which later also became a serious environmental issue. In the early 1990s, rubber tanks were replaced with those made of thermo-plastic (PVC) materials. In late 2001, flexitanks made from multi-ple layers of thin polyethylene entered the market and flexitank transport became a one-way disposable market (95% of today’s market). The flexitank industry is currently developing globally recognised standards for performance, safety, and quality of containerised flexitank shipments.
The first flexitank Code of Practice – featuring container selection, testing, marking and labelling, incident manage-ment and insurance and training – was published by the Container Owners Association (COA) in 2009, followed by a revised edition in 2011. .
Flexitank deliveries also allow our com-
pany to offer fi nancing solutions, including
deferred payment conditions, resulting in real
cash benefi ts for our customers. Our portfolio
of customers includes many companies from
Africa and Latin America. The regional mar-
kets in these locations suffer from inadequate
infrastructure and fl exitank is often the ideal
solution for them. Through the use of fl exi-
tank, there is tremendous growth potential in
these regions for both our customers and us.
According to World Economic Forum’s
Global Competitiveness Report 2012-2013,
transport and logistics costs in most of
Africa’s landlocked countries are excessively
high, accounting for 20–60% of the prices of
delivered goods. Furthermore, the average
cargo waiting time is 20 days. More than
half the time needed to transport cargo from
ports to cities in landlocked countries in
sub-Saharan Africa is wasted because of the
time spent in ports. The dwell time can be a
signifi cant source of revenue for storage and
logistics operators, while the time ineffi cien-
cy is commonly charged to the customers.
Regional and local businesses in Africa face
this most serious obstacle to their successful
development and competitiveness.
Our company has been supplying African
clients with base oils, lubricants, and pet-
rochemicals drawn from the most reliable
producers around the world for more than
fi ve years. Dealing with our local customers
on a daily basis, we understand not only the
potential and power of the market but also the
vulnerability of the local business. Economic
growth in Africa is on the increase. Local busi-
nesses need to establish easy and smooth trad-
ing connections within the continent as well
as with the rest of the world. Accordingly,
modern logistics solutions strive to turn these
challenges into real competitive advantages.
Flexitank is a unique, modern, and cost
effective solution to deliver liquid goods
easier and faster even to landlocked coun-
tries and diffi cult to reach destinations. For
example, in 2012 shamrock volumes in
Africa almost doubled and a notable growth
was demonstrated by flexitank deliveries
with signifi cant geographical expansion and
increase of volumes supplied.
Logistics are a key aspect of the chemical
industry because production and consump-
tion locations are usually separated. Effi cient,
competitive, and sustainable logistics are
therefore of great importance for future
development. We believe that fl exitank is a
good solution for better logistics; it creates
benefi ts and boosts competitiveness for local
businesses in emerging markets, including
African and Latin American countries. .
Facts about Flexitanks:
12 LUBEZINE MAGAZINE | May-July 2013
Recently the
East Afri-
can region
has seen an
increase in housing
and infrastructure
projects. Invariably
this has led to a boom
in the cement indus-
try. New plants such
as Savannah Cement
in Kenya have recent-
ly come up in a bid
to meet the region’s
growing demand for
cement.
One of Africa’s
blue chip cement
companies, the West African Dangote
cement has also noticed the rising demand
for cement and is busy setting up a 1.5MTpa
capacity cement plant in Tanzania.
A rise is cement producing plants is music
to the ears of oil producers as it represents
increased market for their products. We look
at how cement plants are lubricated.
Cement is manufactured by heating a
mixture of limestone, clay and Alumina to
produce clinker by the process known as
calcining. Limestone is the source of calcium
while Alumina is the source of sand. The
clinker is ground with gypsum which is the
source of sulphate.
Cement is manufactured by either a Wet
process or Dry process. In the wet process,
water is added and the resultant slurry is
transported through covered conveyers to
the Kiln.
Prior to a Lubrication survey, we can break-
down the lubrication at Cement Plants into
5 segments.
1. Quarry
2. Raw materials processing
3. Kiln
4. Cement grinding
F E A T U R ET E C H N O L O G Y
PLANT MAINTENANCE
Cement plants lubrication
5. Packing
6. Independent Power Production
7. Automotive Section
QuarryLimestone, is the single large raw material
used in the manufacture of Cement. Cement
Plants are located next to the limestone
deposits and Quarries are set up to ensure
economics in getting this vital raw material.
Open cast quarries for mining are utilized in
the quarries.
The operations involved include blasting
to open the rock, drilling, which helps in
accessing the rock, dumping, dozing and
haulage of the loosened rocks and boulders of
limestone within the quarry and to the plant.
During drilling and blasting, holes are drilled
on the limestone face and explosives placed
in it. The controlled explosion loosens the
James Wakiru is a lubricants and lubrication specialist and has been involved in lubricants market development activities for the past 12 years
By James Wakiru
limestone and Excavators used to gather the
limestone. This is then transported by Dump
trucks or Lorries to the Limestone processing
unit in the Cement Plant.
In bigger cement plants, the limestone
may be hauled from mines to the plant by
a conveyer system and a first stage rock
breakdown may be taken up with use of Jaw
crushers either at the limestone mine or at the
cement plant.
RAW MATERIALS PROCESSING SECTION:
Crushing and grinding: The limestone rocks that have been transport-
ed from the mines are kept in the yard after
preliminary breakdown and sizing in Crush-
ers and Hammer Mills, to around 3 inches
in diameter. This is then sent by conveyers
13 May-July 2013 | LUBEZINE MAGAZINE
towards the rotary kiln. Clay, Alumina and
Gypsum are introduced and blended in the
line, in the required proportions. The blend-
ing is further complimented as the mixture
goes through a series of Ball mills. The process
accomplished by the ball mills is termed as
grinding. The material from this process is
fi nely ground to a slurry. Once the blending
of the raw materials is complete the product is
ready to enter the rotary furnace or kiln.
Kiln - Rotating furnace Section: The kiln or rotary furnace is a vital part of the
cement plant and is tilted slightly to ensure
fl ow of material to the exit direction. The kiln
is supported on massive Girth Gears, where a
sophisticated lubrication dispensing system
and Specialty Lubricants are used. Calcining
or sintering is a process where the raw mate-
rial from the ball mill is heated to a tempera-
ture of approximately 1500o C.
The fi nely ground raw material or the slurry
is fed into the higher end of a kiln. The kiln
process converts calcium and silicone oxides
into calcium silicates, which are the cement’s
most important ingredients. As the material
moves through the kiln, certain elements are
driven off in the form of gases. The remaining
elements unite to form a new substance with
new physical and chemical characteristics.
The new substance, called clinker is formed
in pieces about the size of marbles.
The kiln system has three critical sections:
Section I: Drying and preheating section
which operating at 20oC to 900oC
Section II: Calcining section operating at
600oC to 900oC
Section III: Burning section operating at
1200oC to 1480oC which produces clinker.
Cement Grinding Section: The clinker passes through the precipitation
process where a clinker cooler hammer mill
is used, it is cooled on-line and blended with
gypsum. It then goes through the grinding
process where it is ground to the specified
specifi cations. Here a plant may have a hori-
zontal axis mill which may have enclosed
gearboxes or open gears. The fi nished product
which is now cement, is then conveyed to
large holding tanks called Silos.
Packing and palletizing The finished product is conveyed via a
conveyor to the packing and palletizing
section.
There are two kinds of cement packing
Quarry section
Equipment Lubricant usedLarge mobile equipment like Dumper,
Lorries, Dozers, Excavators, Back hoe
Engine oils, Hydraulic Oils, Transmissions Fluids, Automotive Gear Oils,
Greases, brake fluids, radiator coolants, High pressure pin greasing
Rock drills Rock drill oils, Hydraulic oils, semifluid greases
Conveyor belts(Gear boxes, head, tail and
tension bearings, hydraulic system)
Gear box oils, Roller bearing grease,
Compressors Hydraulic oils, Compressor Oil (Reciprocating and Screw)-Can be Synthetic
or Mineral
Pneumatic system Air Line Lubricant (Pneumatic)
All grease points Multi-Purpose, EP type and Graphite or Molybdenum disulphide grease for
anti seize of threading in drilling rods.
Crashing and grinding section
Equipment Lubricant usedCrushers can be jaw or cone type Open gears
Mills Hammer Mills, Ball mills Gear box, Motors
Conveyers systems Greases-All Purpose and EP type.
Roller presses Greases(EP), Gear oils
Girth gear Hydraulic oils(Syn or High VI mineral)
Synthetic semi-fluid grease, bituminous based semi-fluid grease
Open gear Greases and Lubricants
Gear Oil, Gear oils(PAO or Mineral), Lithium complex grease(EP)
Kiln - Rotating furnace Section:
Equipment Lubricants usedConveyers, Coal Mill, Kiln, Girth Gear, Specialty Grease for Girth gears(Synthetic semi-fluid grease or bituminous
based semi-fluid grease), Gear oils, Greases - All Purpose, EP type, High
temperature Grease, Specialty Girth Gear Lubricant
Kiln tyres, Rotating Furnace, gear boxes Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,
Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous
based)
Cement Grinding Section
Equipment Lubricants usedConveyers, Coal Mill, Kiln, Girth Gear, Specialty Grease for Girth gears(Synthetic semi-fluid grease or bituminous
based semi-fluid grease), Gear oils, Greases - All Purpose, EP type, High
temperature Grease, Specialty Girth Gear Lubricant
Kiln tyres, Rotating Furnace, gear boxes Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,
Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous
based)
Cement Grinding Section
Equipment Lubricants usedBall mills, conveyers, ID Fans Gear Oil, Greases- All Purpose, EP type, High temperature Grease(Synthetic
or Lithium Complex based).
Gear Oil, Greases – Multi-Purpose, EP type, High temperature Grease,
Specialty Girth Gear Lubricant(Synthetic like PAO based or bituminous
based)
Packing and palletizing section
Equipment Lubricants usedPneumatic systems Airline lubricants
Gears Gear oils, hydraulic oil, semi-fluid greases
Bearings Greases
Independent Power supply unit
Equipment Lubricants usedDiesel powered generators
(LSHS,HFO,AGO )
Trunk Piston engine oil-High TBN (40), Normal Multi-grade engine oil,
Marine Engine Oils, Turbine Oils, Gear Oils, Greases- All Purpose, EP type
Gear oils, hydraulic oil, semi-fluid greases
Coal Thermal Power Plants: Turbine Fluids, Greases, All Purpose, EP type Greases.
Automotive Section
Equipment Lubricants usedAuto motive Workshop – Lathes, drilling
machines, welding machine, cranes, fork lift.
Trunk Piston engine oil-High TBN (40), Normal Multi-grade engine oil,
Marine Engine Oils, Turbine Oils, Gear Oils, Greases- All Purpose, EP type
Water emulsible cutting fluid, hydraulic oils, transformer oil, EP greases,
Engine oil, Gear oils
Mobile equipment Turbine Fluids, Greases, All Purpose, EP type Greases.
Engine oil(Synthetic or Mineral), Transmission oil, Hydraulic oils, Gear oils,
Greases, ancillary products like brake fluids, coolants etc.
LUBRICANTS MAPPING FOR CEMENT PLANT
14 LUBEZINE MAGAZINE | May-July 2013
The lubrication industries fall under
the petroleum industry have con-
tinued to expand and grow; while
its impacts on the environment are
also on the rise. The industry is involved
with maintenance servicing within the
motor industry, and uses products whose
composition includes oil and grease among
others, with the main components being
extracts and synthetically prepared petro-
leum products. Other ingredients also used
contain many other chemicals and compo-
nents like heavy metals.
Investments in the industry involve the
development of service centers, which can
be easily monitored when it comes to envi-
ronmental risks and threats.
The establishment of such service centers
is subject to an initial Environmental Impact
Assessment upon which the recommenda-
tions for the environmental consideration
during the development and operationaliza-
tion are captured. After the initial Environ-
mental Impact Assessment and during the
operational phase of the establishment,
under the Environment Management and
Coordination Act (EMCA 1999), they are
required to undertake regular annual envi-
ronmental in the form of Environmental
Audits.
However, despite the industry is a lucra-
tive one and of great economic importance, it
poses very serious environmental concerns
if appropriate mechanisms are not taken
into account during operations.
The two most serious issues are spill-
ages and leakages of the products especially
during servicing and handling of the used
lubricants such as oils.
Most of the service centers can be catego-
rized as point sources of pollutions going by
the trend of reckless discharge of pollutants
to the immediate environment especially in
the semi-formal establishments. Such kinds
of practices are environmentally unaccep-
table and subject to prosecution in a court
of law.
machines:
Spiral cement packing plant: Utilises
a spiral conveyance of bulk cement. This
system has pneumatic components such as
air compressor, valves which enhances auto-
mation of cement bag compaction, loosening
and bag delivery using electromechanical
systems.
Rotary cement packing machine: Utilised
to reduce problems like measurement and
leakages of the cement which reduces the
maintenance costs.
The fi nal product is shipped either in bulk
(ships, barges, tanker trucks, railroad cars,
etc.) or in strong paper bags which are fi lled
by machine.
The conveyors utilized in this section have
drive gearboxes, and head, tail and tension
bearings.
Independent Power supply unitPower supply is critical for cement plants
since they are power intensive. Sometimes
the power from the National grid or local
utility provider may be insuffi cient or erratic
hence the need to have an alternative power
supply.
Many cement plants have set up independ-
ent power supply units to this end.
Most of the independent power plants are
diesel generators which may run on Diesel,
Fuel oil or IDO. Some large cement plants
have set up coal fi red thermal power plants.
Automotive SectionIn the automotive section, all the mobile
equipment are maintained and serviced here.
This includes the earth moving equipment,
trucks and fork trucks. .
Environmental Auditing for Service Centres
ExplanationEnvironmental auditing (EA) refers to
systematic procedures used in assessing the
environmental performance and compli-
ance of establishments. It is applied as an
effective tool to monitor operations and
identify possible environmental implica-
tions that may arise from the existence and
undertakings of a facility, as per the EMCA
act. Through the evaluation, the intentions
are to identify environmental conformance
issues and the environmental management
systems implementation gaps among other
concerns. The nature and signifi cance of any
negative environmental effects are analyzed
thus facilitating the development of appro-
priate mitigation measures. Projects required
to undertake regular Environmental Audits
like those in the lubrication industry are
encouraged to do so not just for compliance
with the law but also to facilitate timely and
adequate measures to address existing and
emerging environmental problems. The
overall objective of Environmental audits is
to maintain the lowest level of implications
from any economic activity, making the
process a vital tool in decision making and
enhancing the realizations of sustainable.
RationaleThe environment is the base for social and
economic development and progress, with
almost all the resources used extracted from
the earth including crude oil. Thus, the impli-
cations of the lubrication industry begin in
the early stages of raw materials extraction
and continue all the way to the disposal of
used products and waste. Exploiting the
resources and products is inevitable, hence
mechanisms need to be in place to monitor
and manage the activities within the sector.
This is to ensure that the potential issues/
threats are mitigated without compromis-
ing the economic potential of the industry.
The industry poses a variety of environ-
mental risks and threats majorly because
the products therein are of oil origin, with
potential to cause devastating environmen-
tal pollution and degradation. Environmen-
EHS
By Lucie Wanjohi
Kiln and silo in a cement plant.
15 May-July 2013 | LUBEZINE MAGAZINE
tal hazards involved in this sector include
contamination of the ground/soil and water
bodies (ground and surface). Treatment levels
especially by use of heavy metals raise the
potential impact with the results being:
• Ill health for humans, plants and animals
with fatality possibilities
• Loss of biodiversity like burrowing ani-
mals, small mammals and aquatic animals
• Contamination of water, surface and
ground, rendering it less useful
• Loss of land fertility and toxication of soil
composition
• Eyesore sighting and degradation of aes-
thetic value of land
The approach taken for environmental
auditing embraces the evaluation of checks
and balances using set and designed environ-
mental criteria and standards.
NecessityCurrently environmental audits are a legal
requirement for various sectors of the econo-
my including the petroleum industry under
which lubrication ventures fall. They are con-
ducted as per the standards provided for in the
environment management and coordination
act (1999) in line with other sectorial laws. The
main aim is to ensure that operations within
the industry are properly undertaken, taking
into consideration the need to preserve, pro-
tect, and conserve the environment by:
• Utilizing resources sustainably
• Adopting appropriate environmentally
friendly technologies in operations
• Mitigating against possible pollution/
degradation through leakages and spills
• Developing appropriate waste manage-
ment procedures
NEMA Kenya is the national agency of the
government mandated to coordinate all envi-
ronmental matters including the enforcement
of compliance to environmental regulation
and standards. It is the principle administra-
tor of the environmental auditing and assess-
ments activities; they undertake reviewing the
projects reports, approving or rejecting them
and providing improvement orders. They have
the power to register environmental experts
(recommended to undertake the auditing and
assessments). NEMA also conducts environ-
mental inspection using their fi eld enforce-
ment/ extension offi cers. They are mandated
to take legal action up on those who violate
environmental matters as established under
the environmental laws and policies, includ-
ing the failure to conduct and submit the
annual environmental audit before the end of
each year.
Procedure description and structure
The procedure for undertaking an Envi-
ronmental Audit is very similar to that of
conducting an Environmental Impact Assess-
ment with the Environmental Audits skewed
towards the monitoring and evaluation of the
compliance and application of management
plans recommendations. The methodology
of conducting the environmental audits is as
follows:
1. Pre-audit phase: develop an audit plan for
the on-site activities; and make arrange-
ments and preparations for the on-site
auditing and involves:
• Audit plan development including the
objectives and criteria
• Preparation of materials e.g. reviewing
previous assessments/ audits
• Screening to establish if there is need to
F E A T U R EE N V I R O N M E N T A L
subject the premises to an environmen-
tal audit
• Scoping to identify the contents and
extents of matters to be covered
2. Conducting the on-site audit with the aim
of collecting relevant data for analysis and
evaluation to establish the compliance and
management levels and gaps, includes:
• Data collection and recording
• Stakeholders involvement
• On-site recommendations and observa-
tions discussion
3. Post audit phase involves the fi nal stages
of the auditing process, capturing and
interpreting the outcomes of the audit, it
includes:
• Analysis and review of the fi ndings
• Preparation of the audit reporting
• Lodgment with the relevant institutions
i.e. NEMA
• Follow-ups and consultations .
16 LUBEZINE MAGAZINE | May-July 2013
I N O T H E R W O R L D SB Y J O S E P H N D U N G U
C astrol has partnered with TomTom,
a leading provider of navigation and
location-based products and services
to study the impact of “stop-start” driving
patterns across the world. A report high-
lighting the impact of stop-start driving in
50 cities and regions around the world will
be published by Castrol and TomTom in
September 2013.
Castrol’s studies already show that
drivers can experience as many as 18,000
stop-starts every year. The pioneering study
that Castrol is undertaking with TomTom
will discover the number of stop-starts
in different cities around the world, and
TomTom will use its precise travel and
traffi c information to analyse driving
behaviour across the entire road network,
all over the world.
Gareth Bracchi, Senior Development
Technologist at Castrol, commented:
“Stop-start traffi c is a global issue that not
only affects journey times, but all that
idling in traffi c and waiting at junctions
causes microscopic wear in engines. By
partnering with TomTom, we’ll be able to
accurately measure the stop-start average
per kilometer within defi ned city limits,
discover what cities have the heaviest traf-
fi c, and show which city’s drivers are most
at risk of damaging stop-start wear.”
Ralf-Peter Schäfer, Head of Traffi c at
TomTom added: “This partnership makes
perfect sense, as both TomTom and Castrol
aim to make the lives of our customers run
as smoothly as possible, whether that’s
on a daily commute, the school run or a
weekend road trip. We are very excited to
be working with Castrol and look forward
to sharing the fi ndings from this study.”
The study will uncover the traffi c condi-
tions in 50 key cities and regions around
the globe, including North America (New
York), Australia (Sydney), Asia (Beijing,
Bangkok, Jakarta, Kuala Lumpur), Russia
(Moscow), Brazil (Rio de Janeiro) and
Europe (London, Istanbul) and Hong Kong.
Founded in 1991 and headquartered in
Amsterdam, TomTom, a leading provider
of navigation and location-based products
and services. TomTom maps, traffi c
information and navigation technology
power automotive in-dash systems, mobile
devices, web based applications and
government and business solutions, has
3,500 employees worldwide and sells its
products in over 35 countries. .
Castrol Partners with TomTom to study impact of stop-start driving
TECHNICAL PARTNERSHIP
Stop-start traffic is a global issue that not only affects journey times, but all thatidling in traffic and waiting at junctionscauses microscopic wear in engines
Early morning traff ic jam in the
city of Nairobi.
17 May-July 2013 | LUBEZINE MAGAZINE
Eni and the Piaggio Group have
renewed their technology, industrial
and commercial partnership agree-
ment for 2013-2015. The announcement
was made by the two companies during a
press conference held at the Autodromo
Internazionale Enzo e Dino Ferrari in Imola
during the second Italianround of the Eni
FIM Superbike World Championship.
The agreement, signed for the fi rst time
in 2006 and reaffi rmed in 2010, will see Eni
and the Piaggio Group striving to improve
the competitiveness and performance
of high-tech fuels, lubricants and other
speciality Eni products which the Piaggio
Group brands (Piaggio, Vespa, Aprilia,
Moto Guzzi, Gilera, Derbi, Scarabeo,
Piaggio Veicoli Commerciali) use in their
engines. Another goal of the partnership
between Eni and the Piaggio Group is to
TECHNICAL PARTNERSHIP
Eni renews its technology, industrial and commercial partnership with Piaggio
consolidate and further develop mutual
activities in emerging markets in Southeast
Asia and in the Far East, which currently
represent a major world market for two-
wheeled vehicles. The collaboration in the
fi eld of racing is also ongoing: Eni, a leading
technology partner of the Aprilia Racing
team is the offi cial supplier of fuels and
lubricants for Aprilia and also sponsors the
Aprilia RSV4 bikes of Eugene Laverty and
Sylvain Guintoli.
The Eni FIM Superbike World Cham-
pionship racetrack, just like racetracks
all over the world, offers Eni an excellent
opportunity to test its fuel and lubricant
products under extreme conditions before
producing them on a large scale.
Finally, in its efforts to meet the com-
mercial needs of the manufacturer, Eni has
developed a range of customised products
named i-Ride Piaggio Group, which rounds
off the range of i-Ride.
The Piaggio i-Ride range is a spectrum
of products intended for all kinds of
2-stroke and 4-stroke two-wheelers from
the Piaggio* group. This range includes
all the products required for the operation
and maintenance of two-wheelers:engine
oils, brake fl uids and coolants, fork and
transmission oils. .Source ; OEM/Lube News
Lubrication in the food and beverage industrySee also P.20
The partnership strives to improve the competitiveness and performance of high-tech fuels, lubricants and other speciality Eni products which the Piaggio Group brands use in their engines
18 LUBEZINE MAGAZINE | May-July 2013
F E A T U R ER E C Y C L I N G
With an innovative design of an
efficient industrial chamber,
Anselm Croze literally puts
what might seem useless
waste into amazing use in a process that
results in beautiful objects and creates sev-
eral employment opportunities, meanwhile
conserving the environment by disposing off
a considerable volume of harmful oil waste in
an environment-friendly way.
His trade consists in glass, which he melts
in a hot furnace, modelling the material--at
high temperatures--into beautiful objects
in an exciting local glass art industry, with
evident pointers to further future growth
in the industry that is relatively small in the
country.
Interestingly, the glass raw material he
uses consists of waste glass collected and
recycled to make fi ne fl ower vessels, window
glasses, utensils, among other articles. This
way, Croze also contributes to environmental
conservation efforts aimed at ensuring the
environment is well rid of waste glass that
would otherwise pose environmental haz-
ards by re-using it as part of the raw material
he requires to sustain his production.
But even more curious is his innovative
approach to powering the furnace, which –in
part—is able to generate temperatures suf-
fi cient to melt glass on account of used oil
,which is considered useless waste or put to
wrong use by many lubricants end users.
The furnace heating system itself entails a
lofty mast-like structure with two tanks atop
(one filled with used oil, the other water),
placed at different heights, and a long hose
that directs the used oil, driven down by grav-
ity pressure from the tank, to burn inside the
furnace and melt glass at the hose’s nozzle tip,
fi tted with a regulation tap. The water, on the
other hand, is used to pre-heat the used oil as it
approaches the nozzle burner to make it more
fl ammable.
For this edition, Lubezine magazine paid
Anselm Croze’s Kitengela Hot Glass Limited
a visit to see his innovative used oil-powered
furnace model in a bid to explore environ-
ment-friendly methods that can be used to
get rid of used oil, besides getting an insider
insight regarding how the collection and
re-use of used oil can be made smooth.
Located in Nairobi’s Rongai area, Kitengela
Hot Glass Limited was established sometime
in 1994, during a time when Tuala area --the
exact location of the fi rm—including the sur-
rounding areas was off the national grid. The
RECYCL ING
Anselm Croze: Innovator who uses oil waste to make beautiful objects
By Hesborn Nyakundi
Anselm Croze
19 May-July 2013 | LUBEZINE MAGAZINE
Presently there are 32 lubricant plants in Nigeria duly licensed and fully operational while about
seven new plants are soon to become operational. P.6See story
Kitengela Hot Glass Limited provides an example of how innovation can put used oil to profitable use
that the market is bound to expand even
further as demand for lubricants and lubrica-
tion solutions is expected to rise in tandem
with the projected growth within the indus-
trial and transport sectors. With an annual
lubricants usage in the excess of 40 million
litres, the used oil generated in the Kenya is
estimated to be in the neighbourhood of 30
million litres.
Lubezine magazine has established that
despite efforts by government agencies to
ensure that used oil is properly disposed off,
pollution continues to happen as mechanics
and even industrial players get rid of used oil
in utterly environmentally unfriendly ways.
Legislation has clearly failed, and if nothing
more is done, we shall only hope for innova-
tions — such as Croze Anselm’s -- promising
an enduring solution to effective disposal of
used oil.
Kitengela hot Glass Limited provides a
fabulous example of how innovation can put
used oil to profi table use, fortifying environ-
mental conservation efforts and providing
exciting employment opportunities in the
process.
We can now also report, based on our
random fi eld analysis, that many handlers of
used oil have little or no information on the
hazards of used oil, or when it is not handled
accordingly as several end users of oil dump
the resulting waste into rivers, oblivious to
the attendant dangers.
According to a study conducted by the Uni-
versity of Nairobi in 2011, pollution resulting
from used oil continues to happen unabated
in the country, contaminating a huge volume
of water that ends up being used for domestic
purposes. The study suggests a remedy: that
with proper co-ordination and collaboration
between oil dealers and by the government,
the pollution can be scaled down by a wide
margin through redirecting the waste to
re-use and re-refi nery.
‘Used oil that is properly handled can be
re-refi ned into lubricants, processed into fuel
oils and used as raw material for the refi ning
and petrochemical industries’, suggests the
study.
But are these conventional methods of
handling and re-use of used oil implemented
in Kenya?
With his relatively long experience dealing
in used oil, Anselm Croze reckons that more
needs to be done. He raises concerns over a
ring of unscrupulous cartels in the oil waste
market who either use it to counterfeit genu-
ine oil or sell it to unsuspecting consumers as
furnace oil.
‘The cartels offer to collect the oil waste
from many of the used oil collectors at a price
that is higher than what a genuine recycler
can offer and that makes collecting the oil dif-
fi cult especially in the face of threats from the
elaborate network of the dishonest dealers,’
he says.
To facilitate a smooth process of collect-
ing and re-using used oil, in the interest of a
genuine lubricants market in the country and
the environment, Anselm Croze says govern-
ment agencies such as the National Environ-
mental Management Agency (NEMA) should
do more in tracking the disposal of used oil, a
practice common in the developed countries.
‘In other countries, gas stations are encour-
aged to collect used oil for a supply discount
for proper disposal and there is no harm if that
is adopted in Kenya’, he pointed out.
With simple measures Kenya – like many
other countries--can ensure proper disposal of
used oil to ensure a clean environment and
ensure its maximum environment-friendly
use through recycling and innovative end
uses along Anselm Croze’s model. .
company started off with Industrial Furnace
Diesel (IFD) and has been supplementing it
with used oil for the past four years.
‘’When we started, we were basically off the
grid. So we had to seek out cheap and sustain-
able alternative sources of energy to execute
our operations and that was how we fi nally
settled on used oil as it was readily available
and it proved an effi cient heating agent to use
in the furnace’’, explained Croze in the course
of our interview, adding that used oil could
generate heat up to 1500 Degree Centigrade
in the furnace.
‘However, the temperature is constantly
monitored and regulated to fall within the
range between which we can comfortably
work on the glass. Besides, it is a very demand-
ing fuel as it requires constant monitoring of
the furnace to ensure a consistent and opti-
mum heat balance,’ he said.
According to Croze, Kitengela hot Glass
Limited uses about 300 to 500 litres of used
oil daily, which translates to approximately
180,000 litres annually. This is a small volume
of the approximated national used oil volume
of 30Million litres produced every year but
then again signifi cant considering the waste’s
pollution capacity, particularly if it comes
into contact with water bodies.
According to scientifi c fi ndings, one litre of
used oil has the capacity to contaminate one
million litres of water, which if consumed by
human beings and even animals can create
health problems, which is why the waste
should be handled and disposed off carefully.
Kenya currently ranks highest in the East
African lubricant market, with clear signals
Glass items manufactured by kitengela hot glass.
20 LUBEZINE MAGAZINE | May-July 2013
T his particular
industry has
achieved a fair
degree of promi-
n e n c e i n r e c e n t
years, in respect
to lubrication, not
only because it is
thriving (it is one of
the few industries
where investment
continues apace) and
competition in what
is produced is fi erce,
but also for many
other reasons.
Firstly, we as con-
sumers are much
more aware of the
quality of both the
food we eat and
the drinks that we
consume. Then, of
course, there is defi -
nitely an increased
diligence on behalf
of the many manu-
facturers to ensure
that their processes
do not allow contamination from any source,
including lubricants.
Such contamination would very quickly
result in their customers, who are often
very large organizations themselves with
immense power, either removing highly
lucrative and prestigious contracts or at the
very least, enforcing temporary plant clo-
sures. There is the added pressure also coming
from the health and safety arena.
haps for the same general purpose, non-food
grade grease, which might be lithium based
being employed.
This policy may indeed lead to over-
greasing in some instances which could
potentially damages the electric motor itself.
I have studied many such plants and, surpris-
ingly, there are failures. Don’t ever forget that
un-planned down-time, due to machinery
failure, is very costly indeed.
There will be instances where an electric
motor is driving a conveyor, maybe in a bot-
tling plant, where the drive unit sits over the
conveyor. This is not uncommon in older
plants where space has become limited due
to the increased volumes required to be pro-
duced in order to satisfy consumer demand.
However, the original factory would prob-
ably not have been designed to accommodate
these volumes, and relocating to a newer,
purpose built plant is not a simple business
decision.
Therefore, in many cases, plant conveyors
do indeed pass over each other on tortuous
routes, from the initial bottle in-feed systems
through washing/rinsing, fi lling, labelling,
and packaging among others, and therefore
these drive units will indeed require a food
grade grease for the electric motor bearings.
This is because all grease will eventually be
consumed in a bearing. The question now is:
F E A T U R ET E C H N O L O G Y
By Andrew MonkMr Monk who has spent a career in the application of lubricants, is very experienced in making plants perform more eff iciently, understands the technology involved but, equally as important, understands fully how to apply lubricants to their best advantage.
I haven’t even mentioned the increased
potential for unwelcome media coverage due
to such aforementioned poor maintenance
practices, which could have the worst long-
term effects on continued profi tability of a
business. Competition amongst the many
lubricant companies, who have made the
decision to enter this arena with a range of
food grade lubricants, also plays its part.
From a lubrication perspective, the food
and beverage industry is also quite unique
because consideration must be given to two
distinct ranges of lubricants, namely food
grade and non-food grade.
Unlike any other major industry, the free-
dom to choose lubricants for each and every
application from the vast portfolio available
from lubricants companies worldwide, this
category is not always available.
Food grade lubricants will have to be used
in specific applications, which naturally
limits the choice considerably.
For this reason alone it becomes possibly
more important than would normally be the
case, to assess each application individually
as there are indeed many diverse applications
in the food and beverage industry, potentially
requiring many different types of lubricants
in order to provide for effi cient and effective
lubrication. Not every one of these applica-
tion warrants, or needs, the use of a food
grade lubricant, but those that do will need
experienced assessment
It is not uncommon, for example, to come
across a plant where all electric motors that
have the facility via a grease nipple to be re-
greased, to have a grease gun apply a quantity
at the same interval as most other bearings,
regardless of operational parameters, and per-
FOOD GRADE LUBRICANTS
Lubrication in the food and beverage industry
Drinking water production plant.
21 May-July 2013 | LUBEZINE MAGAZINE
Will the selected food grade grease be as good
as it’s non-food grade counterpart? Maybe
not, depending on the grease selected.
It has to be said, though, that polyurea
based greases are renowned as performing
very well in this application and coinciden-
tally there is a food grade variety available.
Whichever food grade grease is selected, re-
greasing frequencies will have to be looked
at and probably altered accordingly.
Whilst talking about the drive units on
conveyors, and this could be in any industry
within the food and beverage umbrella, let us
consider the gearboxes that may themselves
sit above the conveyors that they are driving.
Such a gearbox will probably be supplied
with a mineral gear oil, but this will not be
acceptable in this application.
Was the oil changed to a food grade variety
of the correct viscosity to suit the application
before use, as any leaks in the past seals will
possibly contaminate the product conveyed
below, if the products container has not yet
been sealed? If the conveyed food or beverage
packaging has been sealed at this stage, then
any lubricant leakage from above will not
contaminant the product.
However, is a mineral oil stain on the
packaging acceptable? Most probably not,
so in this instance perhaps a clear food grade
gear oil would still be used.
Consider also, the possible changes in
the viscosity-temperature relationship of a
food grade oil, as the majority will exhibit a
higher viscosity index and if the application
is located in an extreme temperature environ-
ment, perhaps a geared unit in a freezer or a
cooler or at a higher temperature in an oven,
then the viscosity of the lubricant at these
temperatures may not be anywhere near it’s
mineral oil counterpart and the question that
arises is: Is the viscosity correct at the operat-
ing temperature?
Generally, a food grade oil will possess a
lower viscosity at lower temperatures and a
correspondingly higher viscosity at higher
temperatures, although the criteria for its
I.S.O. Viscosity Grade classification (kin-
ematic at 40°C) will still be fulfi lled.
In other words an I.S.O. Viscosity Grade 320
mineral gear oil will have markedly different
viscosities at various temperatures to an
I.S.O. Viscosity Grade 320 food grade gear oil,
although both will have a viscosity of 320cSt
at 40°C. If taken into consideration, these
viscosity variations can affect the wear rates
in geared units, the frictional characteristics,
the load taken on by (and hence power con-
sumed) in electric motors, as well as the per-
formance of hydraulic systems, for example.
Quite often a different I.S.O. Viscosity
Grade food grade oil needs to be selected for
an identical application, in order to maintain
the correct operational viscosity.
It is also worth mentioning that if a syn-
thetic food grade gear oil is being used by
necessity in a gearbox where leakage could
produce a contamination risk, and perhaps
the gearbox is located very near, either the
in-feed or out-feed to an oven in, let’s say for
example a bakery, then that lubricant will
Quite often a diff erent I.S.O. Viscosity Grade food grade oil needs to be selected for an identical application, in
order to maintain the correct operational viscosity.
22 LUBEZINE MAGAZINE | May-July 2013
F E A T U R ET E C H
probably have a longer life expectancy than
it’s mineral counterpart due to its ability to be
less susceptible to heat degradation.
In this particular instance it might well be
possible to increase re-lubrication frequencies
once more. If, indeed, there is no requirement
for a food grade gear oil in this same applica-
tion, perhaps it might well be advisable to use
one, as the heat transference from these ovens
is often quite considerable.
In this way you would be using a lubricant
highly acceptable in this type of industry,
to many parties, and fulfilling a technical
requirement.
In this instance it might prove worthwhile
to perform oil analysis for a period of time to
determine the desired re-lubrication frequen-
cies. Food grade lubricants generally fall into
three well known categories in the industry,
namely H1, H2, and H3.
There have been many articles written, and
available, on the differences of these three
categories but the most commonly used is
undoubtedly H1. For many years, registra-
tion to these classifi cations was undertaken
solely by the USDA, but when this organi-
zation decided not to continue with the
authorisation process, some years ago, the
lubricants industry was amazingly left for a
short while without any issuing authority
whatsoever, until the NSF organization took
on the responsibility, but still retaining the
same categories.
In Europe there now exists an alternative
organization which can register lubricants,
namely InS Services.
The criteria for registration used by InS Ser-
vices is identical to that used by NSF because
awarding either H1, H2, or H3 demands the
same check on the ingredients in order to
verify that they conform to the FDA 21CFR
Section 178.3570 criteria.
Some industries in the food and beverage
sector have, and continue to, take the stance
that the risk to their future business of a non-
food grade lubricant being used where a food
grade lubricant should have been used is too
great to contemplate, and have made the deci-
sion to use food grade lubricants throughout
even where there may actually be no necessity
to do so, albeit with the increased overall cost
of the lubrication of their respective plants.
This is a decision that only the plant can
ever take, but advice should always be sought
from a lubrication expert as to the correct
lubricants to be used in each and every appli-
cation as the variety of food grade lubricants
available is much less than their non-food
grade counterparts and, as has already been
mentioned, their properties do, and can, vary
considerably with respect to temperature
variations.
There are many different varieties of
lubricants available that can justifiably be
classified as food grade, according to the
aforementioned categories and registered
with either the NSF or InS but, as with other
lubricants, their properties can vary consider-
ably due to their different chemical make-up.
It is not advisable to say that one H1 grease,
for example, can adequately replace another
H1 grease in the same application, as the two
may be completely different, and incompat-
ible. For example, one may have an Alumini-
um Complex base, which to be honest is quite
common in the food and beverage industry,
with a white oil incorporated and the other
may have Calcium Sulphonate Complex as its
base with a synthetic hydrocarbon oil.
Both could be H1 and both could be of an
identical NLGI 2 consistency, but they will
exhibit considerably different properties as
they are indeed different lubricants.
An Aluminium Complex based grease is
inherently quite tacky, which may not be suit-
able for every application, whereas a Calcium
Sulphonate Complex based grease exhibits
very good inherent extreme pressure proper-
ties as well as good water resistance, and very
good temperature capabilities, with some of
these properties more suitable for a particular
application.
Hydraulic systems in the food and bever-
age industry very often employ food grade
oils due to the high pressures encountered
in these systems. Any dramatic leakages due
to burst pipes will result in oil being sprayed
over a large area.
The possibility of hydraulic oil contami-
nating food or beverages is often greater than
other lubricants. Consideration must also be
given to the viscosity-temperature relation-
ships of food grade hydraulic oils as most
hydraulic systems will have been designed to
operate on mineral oils, with the correspond-
ing maintenance manuals probably recom-
mending a branded mineral hydraulic oil.
The capability of the pump, which is at
the heart of a hydraulic system, to be able to
pump the new fl uid must be assessed.
There will also be instances where it would
appear that a food grade lubricant needs to be
used but it is not practical to do so. Take, for
example, chain drives in an oven which bakes
or cooks food.
Some of these ovens operate at very high
temperatures, convey the food quite slowly,
and are naturally fairly enclosed. It may have
been a preference to use a non-food grade
chain lubricant for particular operational rea-
sons, perhaps for reasons of volatility in order
to prevent contamination of the food being
baked by the vapours from the lubricant.
Maybe the lubricant could only be applied
at one point on the chain, thereby requiring
that the lubricant has unsurpassed adhesive
and volatility characteristics in order to be
able to lubricate the linkages and pins of the
chain adequately for one complete cycle.
Maybe many food grade chain lubricants
have been tried but have not performed as
well as the non-food grade variant.
In these instances, if the decision is made
that a food grade lubricant must be used,
then it is not uncommon to re-engineer the
method of lubricant application, or enclose
the chain drive in some way so as to prevent
any contamination totally.
Perhaps ventilation would need improv-
ing? There will be an initial cost involved, of
course, but this will be very worthwhile.
The range of food grade lubricants, oils,
greases, pastes etc. seems to be ever increas-
ing with their capabilities equally covering
more applications adequately but, as with
any aspect of plant lubrication, applications
need to be assessed to make sure that not
only the right lubricant is being used, which
can perform adequately in the operational
conditions actually encountered, but that
re-lubrication frequencies are also taken into
account.
Changing from conventional lubricants to
food grade is not always as straightforward as
sometimes envisaged, and equally one food
grade lubricant may be vastly different from
another. .
Changing from conventional lubricants to food grade is not always as straightforward as sometimes envisaged, and equally one food grade lubricant may be vastly different from another
23 May-July 2013 | LUBEZINE MAGAZINE
W orld demand for lubricants is
expected to increase by 2.3 percent
per year to 43.9 million metric tons
in 2017. The fastest growth will be in Asia,
supported by rising vehicle ownership rates
and ongoing industrialization in large coun-
tries such as China. Above average increases
will also occur in South America, the Middle
East, and Africa. These regions will each
experience healthy economic growth, rising
manufacturing output, and expanding motor
vehicle parks -- all of which will contribute to
gains in lubricant consumption. In contrast,
demand will remain nearly fl at in the devel-
oped countries of North America and West-
ern Europe, where effi ciency gains will offset
the effects of rising economic and industrial
output. Although volume growth will be
restrained in these regions, lubricant sup-
pliers will benefi t from increasing demand
for premium, high-value products such as
synthetic and bio-based lubricants. These
and other trends are presented in World
Lubricants, a new study from The Freedonia
Group, Inc., a Cleveland-based industry
market research fi rm.
According to the study, engine oils
constitute the largest share of lubricant
consumption by product type. Although
rapidly growing motor vehicle parks will
support gains, engine oils will be subject to
downward pressure from lengthening drain
intervals, and as a result will grow in line
with the average pace. Hydraulic fl uids and
process oils will see the fastest gains, due to
the wide range of applications these products
are used in.
Motor vehicle aftermarket demand
accounts for the largest share of lubricant
consumption globally. Demand for motor
vehicle lubricants will increase quickly in
many developing countries due to rapid
growth in the number of cars and trucks in
use. However, advances in lubricant quality
will allow for longer drain intervals, restrain-
ing stronger growth in all regions.
Demand for lubricants used in the manu-
facturing market will see healthy growth,
driven by rising manufacturing output espe-
cially in developing countries. Asia, Eastern
Europe, South America, the Middle East, and
Africa will benefi t from the continued shift
of global manufacturing activity to these
regions. Gains in other markets, including
agriculture, construction, and non-motor
vehicle transportation, will in the aggregate
DEMAND
World demand for lubricants to hit 43.9m metric tons in 2017
F E A T U R EG L O B A L M A R K E T
outpace those in both the motor vehicle
and manufacturing markets through 2017.
Healthy economic growth, investment in
infrastructure and other construction, and
the increasing mechanization of the econo-
mies in developing countries will result in
strong performance in these markets. .
0
10000
20000
30000
40000
50000Central & South America
Africa/Mideast
Eastern Europe
Western Europe
North America
Asia/Pacific
WORLD LUBRICANT DEMAND(thousand metric tons) % Annual GrowthItem 2007 2012 2017 2007-2012 2012-2017 Lubricant Demand 37200 39150 43900 1.0 2.3North America 10380 9430 9600 -1.9 0.4Western Europe 5260 4600 4590 -2.6 --Asia/Pacific 12750 15550 19000 4.1 4.1Central & South America 2100 2350 2650 2.3 2.4Eastern Europe 3530 3660 4010 0.7 1.8Africa/Mideast 3180 3560 4050 2.3 2.6 © 2013 by The Freedonia Group, Inc.World Lubricants (published 07/2013, 477 pages) is available for $6300 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details contact Corinne Gangloff by phone 440.684.9600, fax 440.646.0484 or e-mail [email protected] OEM/Lube
WORLD LUBRICANT DEMAND
2007 2012 2017
24 LUBEZINE MAGAZINE | May-July 2013
The lubricants
b u s i n e s s , a n
essential prod-
uct category in the
petroleum industry
has largely been oper-
ating in a laissez faire
manner over the years.
The Energy Regula-
t o r y C o m m i s s i o n
(ERC) has published
the Proposed Energy
(Lubricants Business Licensing) Regulations
2013, in a bid to streamline this category as well
as rid the market of rogue dealers who are sell-
ing sub-standard products. These regulations
will affect the whole lubricants industry from
new entrants, existing lubricants businesses to
other complimenting sectors like lubricants
transporters and storage facilities.
The regulations require lubricants busi-
nesses - those that are new and those already
operational including importers, distributors,
transporters and packaging, obtain a business
license renewable annually after inspection
of the facilities. The application for renewal of
a license shall be made thirty (30) days before
expiry. The ERC will then be required to make
a decision within 30 days on application.
A person aggrieved by the decision of the
Commission with regards to a licence applica-
tion may appeal to the Tribunal within thirty
(30) days after receiving the written notifi ca-
tion of such action by the ERC.
The draft regulations also empower the
ERC offi cials to make impromptu inspection
visits to facilities used in handling lubricants.
The proposed regulations further prescribe a
penalty of Sh1 million fi ne or a one year jail
term for business owners found contravening
any of the set out rules.
For the new entrants seeking to construct
a lubricants facility (Blending plant/Retail
dispensing Site/ Lubricants bulk storage facil-
ity), the draft regulations postulates that one
will be required to apply to the Commission
for a construction permit, provide Application
forms, copy of approved plans and specifi ca-
tions, EIA license and certifi cate of compliance
with Land use. The new entrant will further
be required to have the brand he or she will be
F E A T U R ET E C H N O L O G Y
require that they comply with the provisions
of the Energy Act of 2006, the Kenya Standards
for Lubricants and all other applicable laws.
The draft Act includes other license evalu-
ation criteria for new lubricants businesses as
follows:
• Application form to be fi lled
• Detailed questionnaire to be fi lled
• Certifi ed copies of:
a) Memo and articles of Association
b) Certifi cate of incorporation
c) PIN
d) VAT
e) Tax Compliance Certifi cate
• Identifi cation documents for directors
• Certifi ed copy of lease agreement
• Work permits
• Letter from KMA confi rming membership
of Oil Spill group
• Certificate of compliance with physical
planning act
• Detailed approved drawings
• Clearance certificate form Chief fire
Offi cer
• DOSHS certifi cate of registration
• Compliance of facility with KEBs
• Brand registered with KEBs
• Brand registered with KIPI
• EIA approval from NEMA. .
STANDARDS
ERC plans to regulate the lubes market
These regulations will affect the whole lubricants industry from new entrants, existing lubricants businesses to other complimenting sectors like lubricants transporters and storage facilities
By Samuel Macharia
dealing with, registered at the Kenya Bureau
of Standard (KEBS) and the Kenya Industrial
Properties Institute (KIPI).
In addition, the importers of lubricants will
also be required to present a written agreement
between the importer and manufacturer brand
owner, sell brand registered in Kenya and they
are prohibited from blending, repackaging or
selling any lubricant brand without written
authority from the brand owners.
With regards to third parties, including any
contracted lubricants road transporters and
service providers to the lubricant facilities like
storage and warehousing, the draft regulations
Road side mechanics perform an oil change in Kenya.
26 LUBEZINE MAGAZINE | May-July 2013
Who is MOGAS? Please give us a brief history of the company. When was the company founded and for how many years
have you been operating in the East African region? Founded in 1987 Maestro Oil & Gas Solutions
(MOGAS) is an integrated regional down-
stream oil marketing company with business
operations ranging from international oil
trading to marine and inland terminals, retail
networks, and lubrication services.
MOGAS has strongly positioned itself
as the leading brand name for fuels, oil and
lubricants in East & Central Africa with oper-
ations in Uganda, Kenya, Tanzania, Uganda,
Rwanda, Burundi, the Democratic Republic
of Congo and the UAE.
MOGAS core assets include a state of the
art 40,000m3 capacity marine terminal in Dar
es Salaam,Ultra modern inland terminals in
Uganda, Kampala with 5,000m3 capacity and
MOGAS Kerosene is available at all MOGAS
retail outlets and provides the lighting and
cooking solution to a large population seg-
ment based in East and Central Africa.
Our specialty line of business includes
technology-led and premium quality MOGAS
oil and lubricants; bituminous products; LPG
and furnace oil. We offer extensive automo-
tive lubricants & industrial fluids and are
the sole distributors of Castrol products in
Uganda, Tanzania, Rwanda and Burundi.
When did you start dealing with MOGAS lubricants and what factors favoured your entry into the lubricants market?
Since the Inception of the company MOGAS
has always had a lubricants line of business.
MOGAS Lubricants fall under the specialty
department of the company and includes
Automotive engine oils, motorcycle engine
oils, transmission oils, hydraulic oils, agri-
cultural oils, marine and outboard oils,
in Lubumbashi, DR Congo with a Capacity of
4,100m3.
What is your product portfolio, both fuels and lubricants products?We provide top range quality refi ned petro-
leum products, which include unleaded
Premium Motor Spirit [Petrol] and diesel
automotive gas oil (AGO) for commercial
transportation and private cars, as well as
grades for thermal power, generating plants
or machinery.
As the continent celebrates 50 years of the African union (formerly OAU) Lubezine
keeps track of indigenous oil companies that have emerged in Africa over the years and brings you their involvement in the lubricants market. Here we feature MOGAS from Uganda and Synergy Lubricants from Kenya. We interviewed MR. SIMON GICHOHI, the group Brand manager at MOGAS.
Focus on Pan African lubes brands
F E A T U R EC O M P A N Y
MOGAS intends to become the leading preferred brand name for fuels, oil & lubricants in our chosen markets and to become a leading integrated enterprise in Africa
Mr. SimonGichohi of
Mogas
27 May-July 2013 | LUBEZINE MAGAZINE
greases, specialties, brake fl uid, cutting oil,
transformer oil, radiator coolant.
Where are the lube products produced and how do you source your raw materi-als?MOGAS Lubricants are blended and packed
in MOGAS Affi liate in Tanzania ie MOGAS
Tanzania Limited. We blend our Lubricants
using virgin base oil mainly sourced from
European countries such Italy and Greece,
while we source our additive from renowned
additive manufacturer Lubrizol based in
South-Africa.
What challenges do you encounter in sourcing the raw materials for your lubricants?The main challenges we face are mainly
logistical issues with regard to sourcing from
Europe and South Africa.
Many African owned oil companies distribute well known international brands as opposed to own labels. What would be the advantages or disad-vantages of owning and marketing a lubricants brand as opposed to dealing with a multinational brand?MOGAS is the sole distributor for Castrol
in Uganda, Tanzania, Rwanda; Burundi &
DR Congo. A major disadvantage when you
market your own brand is that some custom-
ers might feel that an international brand is
superior in performance to a local one. We
market both MOGAS Lubricants brand and
Castrol brand to take care of the different
needs of our customers
What is your regional spread? We operate in Seven Countries namely
Kenya, Uganda, Tanzania ,Burundi, DR
Congo, Rwanda, and United Arab Emirates.
What can you say about your market shares in the countries where you distribute your products?MOGAS commands decent market share in
the markets they operate in. For example
in Tanzania, MOGAS commands 10%, in
Uganda, 10% and in Rwanda, Burundi &
Kenya, below 5%.
What are some of the future plans for MOGASMOGAS intends to become the leading
preferred brand name for fuels, oil & lubri-
cants in our chosen markets and to become
a leading integrated enterprise in Africa,
delivering world-class value added products
and services to a multiple class of customers.
As we invoke our guiding principle which
has always been “Global Standards, local
Solutions”
What is the future of the lubricants industry in the East Africa Region?The future looks bright, and demand for lubri-
cants seems to be on the rise compounded by
the fact that the region has found crude oil…..
this defi nitely sets the pace for exponential
growth.
Our enduring passion for lubricants drives
our desire to meet and exceed the expectation
of our discerning customers so as to always
keep at the forefront in our chosen markets.
We advise our customers on how to give
the best care to their vehicles and equip-
ment to ensure maximum protection and
effi ciency that will yield the highest return
on investment and best value.
Synergy lubricants solutions We interviewed Mr.
Mohamed Baraka who is a founder member of Synergy Lubricants.
Who is Synergy Lubricants? Please give us a brief history of the company. When was the company founded and for how many years have you been operating in the East African region?
28 LUBEZINE MAGAZINE | May-July 2013
Synergy Lubricants Solution Ltd is a
lubricants manufacturing and marketing
company founded by Mr. Dilash Bhayani and
I to provide complete lubricant solutions to
consumers in East Africa. The company was
formed in 2011 and has been in business for
18 months.
Which is your product range and regional spread?We deal with lubricants for all segments
of the market i.e. automotive, agricultural,
construction, steel mills, sugar, and cement
and food industry. Although we have compa-
nies registered in Uganda and Tanzania, we
are marketing in Kenya only for the time
being before venturing into those countries.
What factors motivated you to enter the lubricants market as a private investor? I have been working in the oil industry for 37
years with multinational oil companies and
my desire was to pass some of the knowledge
I had acquired to a younger generation. As a
founder director of Synergy Lubricants, I have
a perfect opportunity to achieve this goal.
Please tell us more about how you source your raw materials for lubricants produc-tion and where you blend your products? We import our base oils from Shell Interna-
tional and is coloaded on the same vessel with
other lubricant manufactures in Kenya. Our
additives are sourced from major American
additive manufacturers that have plants in
Europe. We blend our products locally in an
ISO 9000 certifi ed plant. The other special-
ties such as engine coolants, brakefluid,
food grade greases, transformer oils e.t.c are
imported direct from reputable manufactur-
ers in Europe and Asia.
Many African owned oil companies distribute well known international brands as opposed to own-labels. What would be the advantages or disad-vantages of owning and marketing a lubricants brand as opposed to dealing with a multinational brand? Multinationals brands are well known and
therefore easier to market. However they
tend to be more expensive since they are
imported as fi nished products as most multi-
nationals do not allow local blending of their
products by their distributors. An own label
local brand will take time to be accepted in
the market. Consistent quality is a must if one
has to succeed.
At Synergy Lubricants, we only use
approved formulations. Initially the market
will treat your products with suspicion but we
have overcome this as many of our customers
have remained loyal to us due to our commit-
ment to quality. Remember I have worked on
formulation for Caltex for over 20 years so we
execute to same level as multinationals.
What can you say about your market shares in the countries where you distribute your products?
We have a market share of less than 3% in
Kenya. With the strategies that we are putting
in place, this is bound to grow further in the
coming years.
How do you compare the three East African markets? All the East African markets are the same;
many multinationals have moved out and the
industry has been taken over by both indig-
enous oil companies and other traders. Some
of the challenges facing the market include
counterfeits and substandard lubricants.
What has been the effect of East African countries regional integration to lubricants industry? There is still debate as to whether lubricants
qualify to move freely in the East African
region. Kenya allows locally blended lubri-
cants from the East African region including
those from Tanzania to enter into the country
tax free whereas Kenyan produced lubricants
are taxed at 25% in Tanzania.
There is however discussion to harmonize
these taxes.
Just like in any other industry, coun-terfeiting is a headache for many local producers. Tell us if this has affected you and what measures you have taken to fi ght the vice. Counterfeits are a major problem in lubricant
industry especially if your brand commands
a huge market share. We control our supply
chain and make direct deliveries to our
customers thus eliminating the risk of prod-
uct tampering along the way.
In addition our packs have induction and
tab seals which make counterfeiting diffi cult.
What is the future of the lubricants industry in the East Africa Region? The future of lubricants industry in East
Africa is good as the economies are growing.
The market must be regulated to protect the
consumer from substandard counterfeits and
untaxed lubricants.
The East African countries must allow
locally manufactured lubricants to move
freely without further taxes in order that the
industry can grow and create jobs and enable
backward integration for local base oil and
additive manufacturers which will further
increase job opportunities and lower the cost
of lubricants to the consumer. We now have
crude oil and natural gas that can be processed
locally if consumption justifi es it. .
F E A T U R EC O M P A N Y
An own label local brand will take time to be accepted in the market. Consistent quality is a must if one has to succeed
Mr Baraka of Synergy Lubes
29 May-July 2013 | LUBEZINE MAGAZINE
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