Welcome to ILBA
ILBA (Independent Lubricant Blender’s Association) was founded in South Africa, Centurion, City of Tshwane, on 14 February 2007. There are six founding member companies who have subscribed to and signed ILBA’s code of ethics and its constitution.
To be considered for blender membership, independent lubricant blenders must compound or blend at least 250 000 liters per annum and not be more than 5% owned by an entity considered to be either a major oil or chemical company with a national or international scope.
The South African lubricant industry is not unique in its need for an Association of this type. The European Union has UEIL (Independent Union of the European Lubricant Industry) and Northern America has ILMA (Independent Lubricant Manufacturing Association). A common concern is securing supplies of raw materials. In the lubricants industry, base oil manufacturers & suppliers are often at the same time lubricant blenders and hence competitors to the independents. This dual function can jeopardize fair competition.
2006 was a particularly difficult year for the independent lubricant blenders. Global base oil prices soared to unprecedented highs with local base oils hitching a ride. Unfortunately, for some reason or another, local finished lube WSLP (Whole Sale List Prices) did not follow this trend, resulting in margins being unrealistically low.
The challenge arises when the independents have to compete in the finished lube market on an unequal footing, particularly at times of base oil shortages. ILBA’s intention is to address these challenges by identifying its member’s vulnerability and to actively encourage the members to secure and firm up their relationship with their existing suppliers (national & international) and bring them into the fold in order to facilitate a forum in which meaningful dialogue can thrive, in the interests of all role players. ILBA would like to promote the concept that there is a place for all under the African sun.
Members will have the benefit of real time information such as base oil pricing trends, base oil availability, finished lube technological developments, environmental issues, health and safety concerns, and above all, be guided by a spirit of justice, honour and fairness in all dealings with other members of the lubricant and associated industries.
At the same time, ILBA will enforce its principles of ethics which are aspiration goals of professional conduct for all Association members who pledge to adhere to a standard of excellence in blending, producing, packaging, promoting, and marketing. All members of ILBA shall blend, compound and produce lubricants meeting applicable industry standards, test specifications and operating procedures as prescribed by ILBA, SAE, API, SANS and other standard setting organizations recognized generally in the industry.
ILBA’s main objective is to act in the best interest of its members and to protect and further these interests in ensuring a sustainable, profitable and organized industry for the independent blending and sale of quality finished lubricant products. The Association’s vision is to actively extend its membership list to include all independent lubricant blenders operating in Southern Africa who are willing to focus on upholding the stringent requirements and quality standards set by ILBA. Products blended according to these standards and by members of ILBA will easily be identified by ILBA’s logo.
Peace of mind
Members are expected to maintain excellent service delivery within the lubricant industry and ILBA’s success will give the end-users of finished lubricant products blended by its members, peace of mind.