Oronite Additives Acquires Exxon's Paratone Viscosity Improver

Oronite Additives, a division of Chevron Chemical Co. LLC, has acquired the assets of Exxon Chemical's Paratone crankcase olefin copolymer (OCP) Viscosity Index Improver (VII) business. The cost of the transaction was not disclosed.

The Paratone VII is used in crankcase lubricant applications in all types of automobile, truck, locomotive and other engines. By adding VII, a single-grade oil can be made into a multi-grade oil, such as 10W-40, which is "thin" at low temperatures and "thick" at high temperatures. Customers for Paratone include oil companies and independent lubricant producers that use crankcase OCP Viscosity Index Improvers as part of the petroleum additives package to produce finished lubricants.

Exxon agreed to divest its VII business to clear the way for regulatory approval of the planned Paramins Business Unit lubricant and fuel additives joint venture with Shell Additives. According to George A. Rizzo, president of Exxon Chemical Americas, the new company, called Infineum, will begin operations in January 1999.

Oronite's purchase includes the Paratone trademark, patents and technical information in the crankcase OCP VII field, Paratone brand names and formulations, customer lists for existing business and VII inventory. Oronite also acquired rights to technology, technical know-how and commercial relationships. Additionally, Exxon will supply Oronite's worldwide OCP polymer needs for Viscosity Index Improver applications.

For more information: Stan Luckoski, Chevron Chemical Co. LLC, Telephone: 925-842-3038.