Base oils blog

"Our strategy is to be a global player in premium-quality base oils, offering a world-class customer service and reliable supply." Virpi Amoedo, Vice Precident, Base Oils.

Latest posts

Read our experts' views on topical themes.

19 November 2014
Heavy Duty Diesel specification finally moving ahead – how does the process go?
While the new Passenger Car Motor Oil (PCMO) GF-6 specification from American Petroleum Institute (API) continues to struggle with test development in the USA, PC-11, the new Heavy Duty Diesel (HDD) specification is finally moving ahead. Matrix testing started last month. This matrix testing is designed to demonstrate that the new tests differentiate good and bad oils and have the necessary precision. This part of the matrix is commonly called the Precision Matrix and it should finish up in December or January. The idea is to run two or three Dispersant Inhibitor packages (DI -> additive packages) with selected base oils in all the...
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15 October 2014
At the cross-roads
Due to additional base oil capacities, intense OEM and industry's technical requirements, and supply chain's imperatives (flexible, global and providing business continuity) the lubricants industry is entering a new era, more rapidly than anticipated. Every stakeholder must understand that our industry is at cross-roads. Therefore, it is all about choices. Base oil suppliers have to address these changes with sustainable strategies. There are different routes to do that: Add non-approved Group III molecules to an oversupplied market Focus on limited capacity Change radically the product portfolio and move to another industry Stay...
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15 July 2014
The trouble with our times…
“The trouble with our times is that the future is not what it used to be”, said Paul Valery, a French poet, essayist and philosopher- decades ago. In my role as Business Intelligence Advisor it is essential to be interested in the future. Predicting the future has traditionally been quite easy in base oils business. Demand was firm and prices had their own cycle of ups and downs. Now the situation has changed, and both the prices and the demand are stable but unfortunately at quite low level. Still, we are interested in reading the news between the lines, trying to see what are and will be the next big moves and events in our business...
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22 May 2014
Customer value proposition
Even in established industries market dynamics and conditions vary constantly. Products become commoditized at faster rates with a strong pressure on prices and cost savings. Customer needs become a moving target. A natural answer to companies is to develop further a concept of additional value in order to secure a preferred supplier status. A common mistake is to establish as a starting point a listing of all the benefits and services the company internally assumes is offered to the market. This exercise is helpful when we try to answer the question "Why should our customer buy from us?" But the core question to answer is "Why should...
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25 March 2014
Determination, passion and sacrifice
Winter Olympics are past. It is time to move forward, but before doing that, I'd like to share three things that impressed me in the Olympics. Those were determination, passion and sacrifice. It is easy to understand that in order to be among the best in the world you have to have determination at the very high level. Not only the training is geared towards succeeding in Olympics but the whole life of the athletics is supporting this single goal. I want to make it clear that I'm not advocating focusing on working the same way, but I'd like to have the same determination towards my goals where work related goals are among the most...
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30 January 2014
Thoughts for 2014
I’m having my morning coffee in a hotel breakfast room, and watching how the city wakes up and gets to full speed. By now also the business year has reached its normal tempo after the holiday season. Plans and targets for the year have been set, and now calendars are full of meetings and workshops. My days are not different from that. Implementing our strategy for base oils fills my agenda. Building a global footprint and offering a single top-tier base oil slate is our key theme. Underneath we have detailed regional plans in Europe, Americas, and Asia. We have a long history in the European market, and we keep developing and enhancing...
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02 December 2013
Pace of Change
I'm writing this blog post on a rainy day in Singapore. I should be packing for my travel to New Jersey for the Pan American Base Oils and Lubricants conference, but I always leave packing until the last minute. At the same time I'm thinking of my next packing. I'll be returning back to Finland before Christmas and I have to admit that my mind is already there - home. It will be quite a change to go back from the tropics to the cold and hopefully snowy Finland. But I believe the change is always good. We are talking so much about change everywhere that it has become almost tangible. You can feel the change when you read the morning news...
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06 November 2013
Approved vs. unapproved
A lubricant is a physical mix of base oils and additives. For most of us the motor oil in our car engine is the closest we ever come to a lubricant. The motor oil consists of 75 % to 80 % base oils the rest being different types of additives. There are keep clean additives, anti-wear additives, and fuel economy additives. The driver when formulating modern motor oil is improving the fuel economy without compromising engine durability. To achieve this goal low viscosity base oils are needed in combination with strong anti-wear additives and friction modifiers. Formulating motor oil requires skills in chemistry and engine design. The...
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