Pennzoil-Quaker State, a subsidiary of Shell Oil Co., announced an agreement under which Whitmore Manufacturing, a CSW Industrials subsidiary, will form a 50/50 joint venture (JV) to market, distribute and sell lubricants, grease, coolant, reliability products and related industrial services to the U.S. mining sectors.
The JV, which will be named Shell & Whitmore Reliability Solutions LLC, will combine the strengths of both companies to offer multi-sector expertise equipment technology and an integrated product portfolio for U.S. mining operations (excluding quarries).
“[This] represents a first step toward offering a comprehensive portfolio of products for mining customers,” said Joseph B. Armes, CSW Industrials chairman, president and CEO. “When Shell first approached us about this opportunity to form a partnership, our team quickly realized the value in an expanded commercial relationship with a world-class organization to promote proprietary products and technologies to customers, and increase capacity utilization at Whitmore’s existing manufacturing facility.
“Whitmore and Shell customers are at the heart of the rationale for creating this JV,” said Machtold Hann, president, Shell Lubricants Americas. “The resilient B2B sectors are key pillars for the future of Shell Lubricants, where we see a lot of opportunity for growth to support the market. Partnering with Whitmore, a leading provider of reliability products, high-performance greases and friction modifiers, in creating this JV helps us progress toward execution of this strategy.”
The JV will be staffed by Whitmore and Shell sales and technical professionals. Its production assets will be co-located at Whitmore’s Rockwall, Texas, facility. The transaction is subject to customary closing conditions and it is expected to commence operations in the first half of 2021.