ILMA Compoundings – October 2019 - 25

Split of Basestocks Plants by Nature of Sales, 2008 to 2018-a
Primarily in-house

Merchant marketer

80

Number of plants

70
60
50
40
30
20
10
0

Cap.-b

2008

2018

17.7 23.8

15.6 33.4

a. Includes only paraffinic plants and excludes re-refineries.
b. Aggregate capacity of these plants in million tons.

The volume of paraffinic basestock capacity destined for in-house consumption has fallen.

CRITICAL SUCCESS FACTORS
A few years ago, when the supply of high-performance basestocks was relatively limited, product quality was often cited
as the key factor used when selecting basestock suppliers.
Clearly, product quality and consistency are still high on the
list of selection criteria since they allow blenders to optimize
production processes and costs. However, as the growth in
merchant basestock supply continues, suppliers need a good
understanding of all the criteria coming into play in the
decision-making process to ensure future success.
Kline researchers are exploring the impacts of the new
market scenario, where high-quality basestocks are readily
available across the globe. Via the research, the level of
importance customers place on specific criteria during
supplier selection will be assessed. These criteria include:
* Global coverage of plants and supply hubs.
* Product approvals.
* Range of basestock grades.
* Provision and quality of technical support and
customer service.

The relative importance of these criteria may vary based
on factors including customer size, geography and type of
blender. But in such a challenging market, where finished
lube demand is almost flat and capacity additions continue
unabated, basestock suppliers that understand the changing decision-making processes of their different customer
segments are the most likely to succeed.
STUDY TO REVEAL TOP-PERFORMING BASESTOCK
SUPPLIERS
Kline's new study Lubricant Basestocks Merchant Supplier
Assessment will profile leading suppliers and report on the
results of a survey among finished lubricant blenders, assisting both basestock suppliers and lubricant blenders.
The report will assess the relative importance customers
attach to various basestock supplier selection criteria in the supplier selection process and identify the top-performing supplier
against each of these parameters. A need-gap analysis will also
be included to highlight the changing needs of blenders.
Kumar is project manager at Kline Group. He can be
reached at anuj.kumar@klinegroup.com.

* Price consistency and fairness of commercial terms.

25



ILMA Compoundings – October 2019

Table of Contents for the Digital Edition of ILMA Compoundings – October 2019

LETTER FROM THE PRESIDENT
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
NEW MEMBERS
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
THE ART OF APPRENTICESHIPS
SPEAKING A DIFFERENT LANGUAGE
ANNUAL MEETING SPEAKER SPOTLIGHT
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings – October 2019 - Cover1
ILMA Compoundings – October 2019 - Cover2
ILMA Compoundings – October 2019 - 1
ILMA Compoundings – October 2019 - 2
ILMA Compoundings – October 2019 - 3
ILMA Compoundings – October 2019 - 4
ILMA Compoundings – October 2019 - LETTER FROM THE PRESIDENT
ILMA Compoundings – October 2019 - 6
ILMA Compoundings – October 2019 - LETTER FROM THE CEO
ILMA Compoundings – October 2019 - 8
ILMA Compoundings – October 2019 - 9
ILMA Compoundings – October 2019 - INSIDE ILMA
ILMA Compoundings – October 2019 - 11
ILMA Compoundings – October 2019 - WHAT’S COMING UP
ILMA Compoundings – October 2019 - 13
ILMA Compoundings – October 2019 - 14
ILMA Compoundings – October 2019 - NEW MEMBERS
ILMA Compoundings – October 2019 - INDUSTRY RUNDOWN
ILMA Compoundings – October 2019 - 17
ILMA Compoundings – October 2019 - 18
ILMA Compoundings – October 2019 - In the Know
ILMA Compoundings – October 2019 - International Insight
ILMA Compoundings – October 2019 - 21
ILMA Compoundings – October 2019 - 22
ILMA Compoundings – October 2019 - 23
ILMA Compoundings – October 2019 - Market Report
ILMA Compoundings – October 2019 - 25
ILMA Compoundings – October 2019 - THE ART OF APPRENTICESHIPS
ILMA Compoundings – October 2019 - 27
ILMA Compoundings – October 2019 - 28
ILMA Compoundings – October 2019 - 29
ILMA Compoundings – October 2019 - 30
ILMA Compoundings – October 2019 - 31
ILMA Compoundings – October 2019 - SPEAKING A DIFFERENT LANGUAGE
ILMA Compoundings – October 2019 - 33
ILMA Compoundings – October 2019 - 34
ILMA Compoundings – October 2019 - 35
ILMA Compoundings – October 2019 - 36
ILMA Compoundings – October 2019 - 37
ILMA Compoundings – October 2019 - ANNUAL MEETING SPEAKER SPOTLIGHT
ILMA Compoundings – October 2019 - 39
ILMA Compoundings – October 2019 - BUSINESS HUB
ILMA Compoundings – October 2019 - 41
ILMA Compoundings – October 2019 - 42
ILMA Compoundings – October 2019 - 43
ILMA Compoundings – October 2019 - COUNSEL COMPOUND
ILMA Compoundings – October 2019 - 45
ILMA Compoundings – October 2019 - 46
ILMA Compoundings – October 2019 - 47
ILMA Compoundings – October 2019 - WASHINGTON LANDSCAPE
ILMA Compoundings – October 2019 - 49
ILMA Compoundings – October 2019 - Member Connections
ILMA Compoundings – October 2019 - 51
ILMA Compoundings – October 2019 - Cross Connections
ILMA Compoundings – October 2019 - 53
ILMA Compoundings – October 2019 - 54
ILMA Compoundings – October 2019 - 55
ILMA Compoundings – October 2019 - 56
ILMA Compoundings – October 2019 - 57
ILMA Compoundings – October 2019 - 58
ILMA Compoundings – October 2019 - 59
ILMA Compoundings – October 2019 - PORTRAIT
ILMA Compoundings – October 2019 - Cover3
ILMA Compoundings – October 2019 - Cover4
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