5
You have been involved in setting up blending plants, what makes up an efficient blending plant?
An efficient blending plant must consider adequate
bulk base oil storage, with automatic tank gauging for perpetual inventory monitoring and controls. Additives, packaging and finished products require a well-planned warehouse, as well as an integrated sequence of logic controlling PLC (Programmable Logic Controller) and SCADA (Supervisory Control And Data Acquisition) based automation for the blending. To provide robust and accurate filled packs, we also need automatic or semi-automatic filling machines. Integrated ERP(Enterprise Resource Planning) and WMS (Warehouse Management System) will help transactional processes and inventory, order management and delivery system. Quality control and technical testing require good laboratory equipment for analysis. In addition to plant safety, operating and maintenance SOPs (Standard Operating Procedures) are essential to have a reliable plant. It enables high OEE (Overall Equipment Effectiveness), 100% First time pass rates of batches, high IFOT (In Full on Time service), zero processing waste and non-conforming stock generation, optimal inventory and a smooth supply chain.
6
Could you tell us about the Oryx Energies’ automated lubes blending plant and how the experience is of using it compared to when it was manually operated?
An automated blending set up is a step towards modernization and substantially enhances controls and traceability. It is an inten- sive application of PLC for sequence automation and distributed control, combined with SCADA, to help in efficiency, traceability, and controls. This serves as a significant enhancement from a manually controlled plant. It ensures the high product quality and process standards.
7
What would make an Oil Marketing Company (OMC) choose Oryx Energies Tanzania as its lubricants toll blender? Oryx Energies provides a world class manufacturing and
supply chain service. We are offering quality, process standards, optimal sourcing of base oil and additives. We also help increase the demand by supplying reliable planning, high level service and cost-efficient conversion. This fosters sales, lasting business and distribution.
8
What is your view regarding the coolant market in Tanzania and how is Oryx Energies plant positioned to take care of the needs of this market?
Oryx Energies has a world class facility to cater all possible types and ranges of coolants, and in all packs and sizes. As a lot of substandard products have unreasonable market footing, the coolant B2C market needs proper regulation. We need regulatory governance around both manufacturing and imports. TBS (Tanzania Bureau of Standards) needs to define optimal standards to fulfill the market needs. On its side, FCC (Fair Competition Commission) needs to tackle reported defaulters. B2B market is more OEM
SEPTEMBER 2023 | LUBEZINE MAGAZINE
Oryx Energies serves East and West African Regions and a part of the South and Tanzania is its largest market. It has two lubricants manufacturing plants in Togo and Tanzania.
(Original Equipment Manufacturers) recommendation driven and better aligned to existing standards.
9
What are some of the challenges you have encountered in Tanzania’s lubricants market? Counterfeiting! It has affected most of the brands over
the world, and Africa is not an exception. When high price and inflationary situations happen, cheaper products from other global envelopes, based on low index of raw materials and from free trade zones, invade markets. Substandard products make their way into the market clandestinely. EAC (East African Community) and Revenue Authorities have taken actions to exempt import duties on base oil and it is a good initiative. If additives are exempted as well as import duties on finished product enhanced, it will help local manufacturers more. The congestion at port is another challenge. It is added to demurrages on chartered vessels and additional storage costs on dry cargos when storage time limit is exceeded, due to a tight port infrastructure.
10
You have worked in Asia’s and Africa’s lubri- cants market, what are the similarities and differences in these markets? Structures, features of B2C channels and route to market
have both similarities and differences. Asian markets are bigger and have more standards and high-end products. Automotive OEMs are also extensively present. With NOCs (National Oil Companies), the competition is tougher, but there are less channel conflicts in B2C as the market is more structured and controlled. The route to market is the same, from the manufacturer to a bunch of resellers, to the final retail counter. In terms of sales volume, Bazaar or High Street sales are more important than Forecourt sales in both markets for B2C lubricants. In West Africa, a large part of market is cluttered with a wide range of imported products, but it is not the case in East Africa. Plastic recycling in lubes is still a challenge. Asian markets prefer plastic packages over metal. In Africa, we can see monograde lubes in metal packs in the retail market. Multigrade lubes are more often packed in plastic. In East Africa there is a developing awareness on environmental issues such as plastics reduction and recycling. Below a certain gauge, films are banned from usage. Asian markets are more environmentally compliant as they have created a distinct market for re-refined used oils. It is a circular economy. Africa is still to reach there though; some re-refining units have started to operate.
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