Ukrainian lube maker Aviks Group recently launched a 9,000 metric tons per year grease production plant near Lipetsk, Russia, the company confirmed to Lube Report on Monday.
The 40 million ruble (U.S. $700,000) plant is located in the town of Gryazi, Lipetsk oblast, and its primary products are lithium greases and industrial transmission oils, according to the company. I can confirm that the plant is up and running, and it is our largest capacity [plant] so far, a company spokesperson told Lube Report by telephone from Berdyansk. We are focused in supplying the large industrial enterprises in such countries as Russia, Kazakhstan and Ukraine, said Evgeny Zeltyakov, Aviks Group’s commercial director.
The company’s primary operation and research and development activities are based in Berdyansk, Ukraine, where it operates a 3,600 t/y plant. In addition, it runs a bigger 4,800 t/y capacity plant in Kokshetau, Kazakhstan.
The capacities in Russia and Ukraine supply the home and regional markets and produce a wide range of industrial and railway greases, as well as greases for precision mechanisms and various machinery transmission oils, the company said. It added that the Kazakhstan site is focused on the local market and produces industrial greases for the countrys industrial and railway transportation sectors.
At its plant in Gryazi, Aviks Group plans to expand production of packaging for lubricants, greases and oil coolants. The company also produces different types of soluble oils and coolants.
Russia consumes around 60,000 tons of greases annually, according to Russian grease maker Intesmo.
Since early 2014 Ukraine has been experiencing extreme economic hardships as a result of political instability and armed conflict in the eastern part of the country between the countrys regular army and the pro-Russian separatist forces. The difficult economic situation in Ukraine led to a huge 30 percent slump in the countrys lubricants demand in 2014, according to some industry insiders. By 2013 Ukraines lubricants consumption amounted to about 350,000 to 400,000 t/y, German lube maker Fuchs Petrolub estimated.
Russia is faced with an economic recession in 2015, stemming from the international sanctions imposed upon the country over its military actions in eastern Ukraine and other factors such as low crude oil prices and weak currency. Russian base oils and finished lubricant demand slumped from 1.7 million tons in 2013 to 1.6 million tons last year, according to Moscow-based consultancy InfoTek.