NORWELL, Mass.--(BUSINESS WIRE)--Clean Harbors, Inc. (“Clean Harbors”) (NYSE: CLH), the leading provider of environmental, energy and industrial services throughout North America, today announced the formation of Kleen Performance Products, a new business unit dedicated to the research, development, sales and distribution of high-quality engine oils, lubricants and other automotive and industrial products.
This new Clean Harbors business will build on the Company’s 30-year record of innovation in oil refining processes and leadership position in the North American market for renewable oils and lubricants. Kleen Performance Products will offer a portfolio of products, including Safety-Kleen’s current EcoPower® branded lubricants and base oil produced with re-refined oil, and the Performance Plus line of full synthetic, synthetic blend and other finished lubricants. These diverse offerings position the new business unit to serve the fast-growing market for high-performing lubricants tailored for modern engines, while supporting the reduction of greenhouse gas emissions and carbon footprints.
“The formation of Kleen Performance Products will enable Clean Harbors to capitalize on untapped growth opportunities in an expanding market and dedicate more resources to product development, sales and customer service,” said Alan S. McKim, chairman and chief executive officer of Clean Harbors. “We are well-positioned for long-term growth, with demand for superior lubricants being driven by the modernization of industrial machinery, the resurgence of manufacturing and the next generation of more fuel efficient cars and trucks.
“Additionally, the creation of this standalone business and brand allows the Safety-Kleen organization to concentrate exclusively on its core business of environmental services, including the collection of approximately 220 million gallons of used oil annually,” McKim added.
The total global market for engine oils and lubricants is projected to grow from $140 billion in 2013 to $162 billion in 2019, according to research firm MarketsandMarkets. About 56 percent of this increase is expected to come from motor oil, engine lubricants and other transportation products.
Innovator and Leader in Using Oil as a Renewable Resource
Kleen Performance Products base oil and EcoPower finished lubricants use twice-refined oil manufactured through our innovative proprietary process which reduces greenhouse gas emissions by up to 80 percent. These products also require up to 85 percent less energy to produce than lubricants made from virgin crude oil, because the used oil has already been refined. It takes 42 gallons of virgin crude oil – versus less than two gallons of used oil – to produce a single gallon of high-quality motor oil. Consequently, each gallon of renewable oil that is re-refined represents multiple additional gallons that do not need to be imported, reducing the United States’ dependence on foreign oil.
The U.S. generates approximately 1.4 billion gallons of used engine oil annually that can be renewed and reused versus burning it, inappropriately disposing of it or relying on new crude oil. A fleet of cars or trucks using one million gallons of EcoPower engine oil would reduce greenhouse gas emissions by 3,363 metric tons, or the CO2e absorbed in 85,230 trees grown for 10 years in an urban environment.
“Our oil is approved or complies with requirements set by major manufacturers of gas and diesel engines. It is used successfully by government, for-hire, private and local mass transit fleets, among others,” said Jerry Correll, president, Kleen Performance Products. “The global goal to reduce greenhouse gas emissions and carbon footprints is expected to further drive demand for renewable oil and expand its application into other transportation and industrial areas.”
EcoPower engine oil currently is used around the globe in U.S. military vehicles, the largest fleet in the world. The EcoPower brand also is the official oil partner of Roush Fenway Racing (RFR), the winningest team in NASCAR history, and EcoPower engine oil is used in all RFR racecars.
Performance Plus Products Meet Growing Demand for Full Synthetic and Other Lubricants
Another brand to be offered by Kleen Performance Products is Performance Plus, a line of full synthetic, synthetic blend and conventional motor oils that is expected to support accelerated growth of the Company’s blended products. Demand for full synthetic oil is increasing to meet regulatory standards for lower greenhouse gas emissions and improved fuel economy.
All Kleen Performance Products brands meet or exceed stringent North American standards for motor oil. These standards include American Petroleum Institute (API) performance classifications, as well as those of the Society of Automotive Engineers (SAE) and International Lubricants Standardization and Approval Committee (ILSAC). The brands also meet or exceed the standards of major Original Equipment Manufacturers (OEMs), including General Motors’ dexos1™ requirements.
Execution of Strategic Review
The formation of Kleen Performance Products continues the implementation of recommendations stemming from a comprehensive strategic review of its business portfolio that Clean Harbors announced earlier this year. The review recommended that the Company refocus its businesses on what each does best in order to maximize value. In addition to creating Kleen Performance Products and refocusing Safety-Kleen on environmental services, Clean Harbors also is in the process of carving out its Oil and Gas Field Services and Lodging Services segments as a standalone publicly traded company.
Clean Harbors intends to rename as Kleen Performance Products its current “Oil Re-refining and Recycling” reporting segment within its filings with the Securities and Exchange Commission (SEC).
About Kleen Performance Products
Headquartered in Richardson, Texas, Kleen Performance Products is dedicated to the sale and distribution of high-quality lubricants, including EcoPower and Performance Plus brands, as well as Kleen Performance Products Base Oil. Most of its products are created by proprietary processes developed through decades of investment in research, development and innovation. As the largest provider of twice-refined oil in North America, Kleen Performance Products uses oil as a renewable resource in EcoPower and its base oil, resulting in performance equal to or better than that of lubricants made from virgin crude. For more information, visit www.kleenperformance.com.
About Clean Harbors
Clean Harbors (NYSE: CLH) is North America’s leading provider of environmental, energy and industrial services. The Company serves a diverse customer base, including a majority of the Fortune 500, across the chemical, energy, manufacturing and additional markets, as well as numerous government agencies. These customers rely on Clean Harbors to deliver a broad range of services such as end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling services. Through its Safety-Kleen subsidiary, Clean Harbors also is North America’s largest re-refiner and recycler of used oil and a leading provider of parts washers and environmental services to commercial, industrial and automotive customers. Founded in 1980 and based in Massachusetts, Clean Harbors operates throughout the United States, Canada, Mexico and Puerto Rico. For more information, visit www.cleanharbors.com.
Safe Harbor Statement
Any statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identifiable by use of the words “believes,” “expects,” “intends,” “anticipates,” “plans to,” “estimates,” “projects,” or similar expressions. Such statements may include, but are not limited to, statements about future financial and operating results, and other statements that are not historical facts. Such statements are based upon the beliefs and expectations of Clean Harbors’ management as of this date only and are subject to certain risks and uncertainties that could cause actual results to differ materially, including, without limitation, those items identified as “risk factors” in Clean Harbors’ most recently filed Form 10-K and Form 10-Q. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. Clean Harbors undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements other than through its filings with the Securities and Exchange Commission, which may be viewed in the “Investors” section of Clean Harbors’ website at www.cleanharbors.com.