■ SK Enmove signs long-term agreement to supply premium YUBASE Group III base oils to HF Sinclair, combining its global production capacity with HF Sinclair’s North American distribution network amid tightening supply in the global base oil market.
SK Enmove, a global leader in premium base oils and a company-in-company (CIC) of SK On, announced that it has entered into a long-term supply agreement with HF Sinclair Corporation (NYSE: DINO) to expand the distribution of its Group III base oil products across North America.
The companies marked the agreement with a signing ceremony on August 19th (KST) at SK Seorin Building in Seoul, following the execution of the underlying long-term supply contract on August 3rd. The ceremony was attended by Kim Wone-kee (Jay Kim), President & CEO of SK Enmove; Huh Jung-wook, Head of SK Enmove’s Base Oil Business Division; Matthew Joyce, Senior Vice President and President of HF Sinclair’s Lubricants & Specialties segment; and Leanne Cleland, Vice President at HF Sinclair.
Under the agreement, SK Enmove will provide long-term supply of Group III base oils — a premium category of lubricant base stock — to HF Sinclair’s Lubricants & Specialties segment. HF Sinclair will use SK Enmove’s YUBASE base oils to manufacture its own finished lubricant products and will also serve as the exclusive distributor of YUBASE in select regions across North America.
HF Sinclair, headquartered in Dallas, Texas, is an energy company that owns and operates refineries in Kansas, Oklahoma, New Mexico, Wyoming, Washington and Utah. Its Lubricants & Specialties segment produces and markets base oils and specialty lubricants in the United States, Canada and the Netherlands, exporting to more than 80 countries.
Through the partnership, the two companies aim to strengthen their competitiveness in the North American lubricants market by combining SK Enmove’s stable, high-quality base oil production with HF Sinclair’s well-established commercial network across the region.
| About base oils and the Group III category
Lubricants are essential materials used across the automotive and industrial sectors to reduce friction and dissipate heat between moving parts, with engine oil being the most common example. Base oils are the primary raw material used to manufacture finished lubricants and are classified into groups based on their crude source and refining method.
Group III base oils are produced through a highly advanced refining process and are considered a premium category, offering fewer impurities and a higher viscosity index than Group I and Group II base oils. This allows Group III-based lubricants to maintain stable performance across a wider range of temperatures and driving conditions.
The global Group III base oil market has recently faced supply tightness, driven in part by geopolitical instability in the Middle East that has disrupted refinery operations in the region.
SK Enmove currently exports and sells Group III base oils to more than 40 countries across the Americas, Europe and Asia, in addition to the domestic South Korean market. The company operates Group III production facilities in Ulsan, South Korea, as well as in Spain and Indonesia.
With this new partnership, SK Enmove is expected to significantly expand its route to market for Group III base oils in North America and further strengthen its position in the global lubricants industry.
| Executive comments
“We are pleased to be announcing this agreement, which strengthens our North American footprint by securing a highly reliable route to market,” said Kim Wone-kee, President & CEO of SK Enmove. ” This strategic supply arrangement combined with HF Sinclair’s Lubricants & Specialties segment’s extensive logistics network provides unmatched value to our customers throughout the region.”
“Our stable supply system, anchored by production bases in Ulsan, Spain and Indonesia, was a key strength that made this partnership possible,” said Heo Jeong-wook, Head of SK Enmove’s Base Oil Business Division. “As demand for premium Group III base oils continues to grow amid ongoing supply risks originating from the Middle East, we will work closely with HF Sinclair to ensure a stable supply of world-class YUBASE products to customers across North America.”
“This long-term supply agreement for premium Group III base oils with SK Enmove represents an important milestone for our business,” said Matthew Joyce, Senior Vice President and President, Lubricants & Specialties segment at HF Sinclair. “By expanding our distribution of YUBASE through our North American network, and combining SK Enmove’s reliable supply and consistent quality with our own formulation and technical expertise, we will be well positioned to deliver high-quality lubricant solutions that meet our customers’ expectations.”
