Brazil is set for a new oil re-refinery, driven by the country's priority to recycle used and contaminated motor oil.
The re-refinery will produce API Group II base oil - the only Group II plant in the country and, indeed, the continent - according to Lube Report's George Gill. The plant will be built by Chemical Engineering Partners for recycler and re-refiner Lwart Group.
The site will be contructed alongside Lwart's existing re-refinery in Lencois Paulista in Sao Paulo. The company has another plant in Bahia as well as 15 collection centres across Brazil. CEP's comment that this plant will be the largest facility it has designed to date (which had previously been a 60,000 metric ton site the new plant is likely to exceed this capacity which, incidentally, matches the current output of Lwart's existing Sao Paul plant.
With API Group II provision in South America being totally dependent on imports, the new site could capitalise on local demand. According to Gill, the only competition could come from Petrobras, although their plans for a similar plant have been put back to 2016.