Overview
The European Lubricant Industry at the Beginning of the New DecadeVienna, 21- 22 October 2010
Renaissance Imperial Riding School Hotel Vienna
The 2010 UEIL Annual Congress of the European Lubricants Industry "The European Lubricant Industry at the Beginning of the New Decade" took place on 21-22 October in Vienna, Austria.
UEIL is thankful to all delegates for making it another successfull event! A record event with over 230 participants.
The UEIL Congress Team
For further information, please contact the UEIL Secretariat
Please read below some stories about the CongressGlobal lubricants market to see consolidation - Fuchs Petrolub - 21 October 2010 16:15 [Source: ICIS news]
VIENNA (ICIS)--The global lubricants market is growing but will likely be concentrated in fewer hands, a marketing executive told a meeting of independent European lubricant manufacturers on Thursday.
Consolidation in the global lubricants industry had reduced the number of manufacturers from 200 major and 1,500 independent blenders in the mid-1990s to just 130 majors and 590 independents in 2005, according to Apu Gosalia, global head of strategic marketing at Fuchs Petrolub.
He said there is an expectation of further consolidation, especially among small and medium-sized companies.
Gosalia was speaking in Vienna, Austria, at the annual congress of the Independent Union of the European Lubricants Industry, known by its French acronym UEIL.
He estimated that the top 10 manufacturers represented 50% of the market by volume, with the other half shared by more than 700 companies.
“We see the market recovering to a level of 36m tonnes in 2010,” said Gosalia. Fuchs statistics showed that the global lubricants market, excluding marine lubricants, declined by 11.9% in 2009 to 32.8m tonnes.
Gosalia also described shifting patterns of lubricant consumption in developed and developing countries.
China was the only country among the top 20 consumers of lubricants to show an increase in consumption in 2009, with 6% growth, Gosalia said. The top 20 consuming countries accounted for around 70% of global lubricant consumption, he added.
Volume growth in lubricant consumption was greatest in the BRIC countries (Brazil, Russia, India and China) and the Commonwealth of Independent States (countries of the former Soviet Union, excluding the Baltic states), he said.
In G8 countries, growth in lubricant consumption was much slower, but this trend was accompanied by a shift towards higher-quality lubricants.
Gosalia noted that both the quantity and quality of base oils consumed in CIS countries are improving. CIS countries accounted for around 10% of global nameplate capacity for the production of lubricants, he added.
James Mills, ICIS
****Vehicle engine oils 'not just a spare part' - independent blenders - 21 October 2010 16:08 [Source: ICIS news]VIENNA (ICIS)--Speakers at the annual congress of independent European lubricant blenders on Thursday hit back at efforts by vehicle manufacturers to license automotive lubricant specifications in a bid to generate new profit streams.
Emil Tsenov, international lubes marketing manager at OMV Refining and Marketing, said manufacturers were trying to establish lubricants as a spare part for their vehicles.
He was speaking at the annual congress of the Independent Union of the European Lubricants Industry, which is known by its French acronym UEIL.
General Motors, for example, has begun licensing its dexos specification to lubricant manufacturers, charging an initial fee and royalties.
Ron Powell, representing UEIL’s North American counterpart, the Independent Lubricant Manufacturers Association (ILMA), said vehicle makers were trying to develop new profit streams rather than additional benefits for customers.
He identified several problems for independent lubricant blenders arising from this trend, especially the limited availability of the Group III base oils required for many of the new specifications.
Powell insisted that the “playing field must be level for all blenders”, and that the necessary additive packages should be available to all.
He also noted that not all major or independent companies had agreed to license the dexos specifications.
Any proliferation of lubricant specifications would require blenders to carry greater inventories of additives and more finished products, Powell said. They would face smaller blend sizes, which would require more storage tanks and longer lead times.
It may not be feasible for every blender to offer every potential specification, he said.
($1 = €0.72
James Mills, ICIS
****View from the bridge [Source: OATS Bulletin]
The recent UEIL conference in Vienna brought together a range of strands that reflect the changes taking place in the lubricants industry: the shift to the East; the impact of legislation and risk management; and the importance of internet marketing amongst others.
One presentation that, on the face of it, appeared a bit ‘left field’ but provided significant food for thought, came from the Head of Flight Safety for Germany’s national airline, Lufthansa. Manfred Muller discussed safety policy and the impact of team working, highlighting the need to follow Standard Operating Procedures. Apparently it is a sad fact that individuals take conscious decisions not to do this – sometimes just to make their life interesting – requiring careful balancing of teams to ensure effective critical decision-making. Re-reading the recent reports on disasters in the Gulf and elsewhere, the application of this message to the oil industry, especially where there are multiple contractors involved, is particularly relevant.
Apu Gosalia of Fuchs offered another insightful review of global lubes demand. He highlighted the fact that China has now overtaken the US as the largest lubes market (as well as being the largest automotive market). Also notable was the shift from US and European market domination (over 70% of global demand) in the late ‘90s, to AsiaPac and ROW which now take more than 50%. Even excluding the outcome of this week’s US Mid Term elections, this is a shift of historic proportions. Asian demand is set to drive the global market, which of course underlines the reason why so much oil industry investment is being made in Asia and BRIC markets.
Finally, Austria’s OMV used the opportunity in Vienna to present its successes with internet marketing in a B2C environment, using games and other “new” approaches to build brand and keep users on their website. This, and a recent Landmark report stating that the internet economy provides 7.2% of the UK’s GDP, offers reinforcement for OATS’ decision to develop and introduce “Cool Apps” for B2C marketing for its customers.