Profile: NewMarket Corp (NEU)
22 Mar 2018
NewMarket Corporation, incorporated on April 29, 2011, is a holding company. The Company is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services) and NewMarket Development Corporation (NewMarket Development). The Company operates through petroleum additives segment, which is primarily represented by Afton. The tetraethyl lead (TEL) business of Ethyl is reflected in the All other category. Afton manufactures and sells petroleum additives, while Ethyl represents the sale of TEL in North America and certain contracted manufacturing and services. As of December 31, 2016, NewMarket Development managed the property that the Company owned in Richmond, Virginia, which included approximately 57 acres.
The Company manufactures chemical components that are selected to perform one or more specific functions and combine those chemicals with other chemicals or components to form additive packages for use in specified end user applications. The petroleum additives product applications include lubricant additives and fuel additives. Lubricant additives are essential ingredients for making lubricating oils. Lubricant additives are used in a range of vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, metalworking fluids and virtually any other application where metal-to-metal moving parts are utilized. The Company offers a full line of lubricant additive packages, each of which consists of component chemicals selected to perform desired functions. It manufactures chemical components and blend these components to create formulated additives packages designed to meet industry and customer specifications. It participates in the lubricant marketplace in three primary areas: engine oil additives, driveline additives and industrial additives.
The engine oil additives consists of additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives and engines in ocean-going vessels. The engine oil market's primary customers include consumers, fleet owners, mining and construction companies, farmers, railroads, shipping companies, service dealers and original equipment manufacturers (OEMs). The driveline additives submarket consists of additives designed for products, such as transmission fluids, axle fluids and off-road powertrain fluids. Transmission fluids primarily serve as the power transmission and heat transfer medium in the area of the transmission, where the torque of the drive shaft is transferred to the gears of the vehicle. Axle fluids lubricate gears and bearings in axles, and powertrain fluids are used in off-highway powertrain and hydraulic systems. Other products in this area include power steering fluids, shock absorber fluids, gear oils and lubricants for heavy machinery. The industrial additives submarket consists of additives designed for products for industrial applications, such as hydraulic fluids, grease, industrial gear fluids and industrial specialty applications.
The Company's fuel additives are chemical compounds that are used to improve both the oil refining process and the performance of gasoline, diesel, biofuels and other fuels. The Company offers a range of fuel additives, including gasoline performance additives, which cleans and maintains elements of the fuel delivery systems, including fuel injectors and intake valves, in gasoline engines; diesel fuel performance additives, which perform similar cleaning functions in diesel engines; stabilizers, which eliminate oxidation in fuel, and lubricity additives, which restore lubricating properties lost in the refining process. The Company offers a range of fuel additives across the world and sells its products to fuel marketers and refiners, as well as independent terminals and other fuel blenders.
The Company's All other category includes the operations of the TEL business, as well as contract manufacturing and services performed by Ethyl. The Ethyl plant facility is located in Houston, Texas. It is involved in terminal operations related to TEL and other fuel additives.
The Company competes with Berkshire Hathaway Inc., ExxonMobil Chemical, Royal Dutch Shell plc, Chevron Oronite Company LLC, BASF, Clariant Ltd. and Innospec Inc.
330 S Fourth St
PO Box 2189
RICHMOND VA 23218-2189