- 27 November 2018
Leading U.S. bio-lubricant manufacturer establishes Canadian subsidiary
Oilseed Innovation Partners’ efforts to build Canada’s emerging bio-lubricants market have taken a significant step forward. An American manufacturer of vegetable-oil based lubricant products has formed a wholly owned Canadian subsidiary that will be located in Ontario.
Renewable Lubricants Inc. (RLI) of Ohio is the manufacturer of a host of environmentally friendly lubricants, including penetrant lubricant sprays, greases, chain oils, hydraulic fluids and engine oils. Many are currently made with oils from Canadian oilseed crops like canola.
“Through the Canadian Agricultural Partnership we are investing in the broadening of domestic uses, as well as in market expansion for our agricultural products,” said Lawrence MacAulay, Minister of Agriculture and Agri-Food. “Novel uses and value-added processing of our agricultural crops are a win for farmers and processors, the environment, and Canadian consumers.”
“Our government is sending the message that Ontario is open for business. We’re getting results through the Canadian Agricultural Partnership and cutting red tape. This will bring more investment and more jobs to Ontario’s agri-food sector,” said Ernie Hardeman, Ontario’s Minister of Agriculture, Food and Rural Affairs.
“RLI is recognized as an undisputed leader in the North American bio-lubricant space and it is significant to have an American company decide to build a business here in Canada,” said Oilseeds Innovation Partners CEO Jeff Schmalz. “This is a milestone in the development of a national bio-lubricant industry in our country.”
The long-term goal for the Canadian industry is two-fold: building market demand by encouraging adoption of bio-based lubricants by a wide range of users looking to reduce the environmental risks associated with petroleum-based products, and developing local operations. Those potential users include municipalities, conservation and urban forestry groups, arborist companies, utilities, transit, port authorities and airports.
“Due to lower toxicity to plants, insects and wildlife, bio-based lubricants significantly reduce the risk to the environment and they leave less of an impact on soil and water than their petroleum-based counterparts,” said Rob Roe, OIP’s Director of Bioproduct Commercialization. “At the same time, due to technological advances, their performance is now equal to or better than conventional petroleum lubricant products.”
With the support of OIP, the company, which will be operating as Renewable Lubricants Canada (RLC), already has established relationships here for product formulation and distribution. And OIP’s strategic efforts in the last number of years to build new bio-lubricant markets will enable companies like RLC to grow their business here.
The RLC facility is expected to be operating before next fall and it is expected to create 10 jobs.
“Canada has multiple markets in need of environmentally friendly lubricants. Renewable Lubricants Inc. has the ability to enter these markets with high performance patented technology,” said Benjamin Garmier, RLI’s VP Marketing. “This technology is based on Canadian oilseed base stocks. We at RLI are thankful for the farmers and industries providing optimistic opportunity in the Canadian marketplace.”
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