ICONIC expands its infrastructure and debuts in the base oil market

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ICONIC Base Oil

ICONIC Base Oil

One of ICONIC’s most important projects, since the beginning of its operation in 2018, has been the consolidation project of its production units in Rio de Janeiro. With the completion of this first phase last year, when the entire transfer process between plants was completed, the Caxias unit began to concentrate all the manufacture and packaging of ICONIC Lubricants, which also has a third production unit in Osasco, focused on the production of greases and coolants.

Investments in the Caxias-RJ plant

So that the Caxias plant could absorb all the demand and complexity of this consolidation, the unit received a series of investments in the last 5 years, which in addition to increasing its production capacity, also brought more safety and comfort to its employees. Among the most important initiatives are: new offices and changing rooms, modernized cafeterias, new consolidator warehouse, new filling line, new boiler park, new tank basin and acquisition of new land in its surroundings.

ICONIC Base Oil - Duque de Caxias-RJ plant

Currently, Caxias has 2 manufacturing regimes (continuous and batch), seven packaging filling lines of 1 liter, 4 liters, 20 liters, 200 liters and 1000 liters, as well as several bulk positions, all synchronized with a modern integrated control center that manages each stage of the production process.

“We inherited a great gift from our partners, which were the two production units of São Cristóvão and Caxias. We had the ability to recognize the vocation of each of them and thus get the best out of these assets,” says Márcio Aziz, ICONIC’s Chief Operating Officer. “The entire transition was made under strict planning and today we are proud to say that the first phase of the project achieved its objectives: we grew 140% in production in Caxias, without accidents or impacts for employees and the community and without business disruptions for our customers.”

Second phase and new vocation for São Cristovão

With the completion of the consolidation of production in Caxias and the decommissioning of the São Cristóvão unit, the company was able to launch, at the end of last year, the second phase of its investments to expand the infrastructure. It is a package of 7 key initiatives that aim to put ICONIC on another level of capability and operational flexibility.

“Unlike the first phase of the project, this one goes well beyond the limits of the Factory itself. We seek the simplification and modernization of our entire supply chain, from the arrival of the raw material to the delivery of the product at the point of sale, so that we can offer safe, efficient and reliable operations,” says Marcio.

Among the main investments, we highlight the project to readjust the old plant in São Cristóvão-RJ, which is beginning to be converted into a large terminal for the storage and handling of basic oils, among other possibilities for this asset, which is strategically positioned in a privileged area and connected to the port of Rio by underground pipelines.

ICONIC Base Oil

In addition to the structural changes in the new terminal in São Cristóvão, ICONIC is also developing a project to expand the draught of its berth, located in the Port of Rio, allowing larger ships to dock there. Currently, the channel has limitations that make it impossible for large vessels to enter, promoting higher international logistics costs. “For this berth, we receive imported basic oils not available in the Brazilian market. With the possibility of receiving larger vessels, we become more competitive,” says Márcio.

Both the increase in the port’s draft and the new basic terminal will be key levers for the consolidation of ICONIC’s new base oils unit, led by Marcelo Guimarães, executive manager of ICONIC.

One of the highlights of this strategic plan, ICONIC Base Oil (the company’s base oils unit), inaugurated at the end of 2022, is born as an independent structure. It aims to gain scale through strategic partnerships with lubricant producing customers, strengthen the relationship with international manufacturers, invest in the expansion of its tanker structure widely connected to the port of Rio de Janeiro and facilities with quality and certification.

“The objective of this new business unit is to provide solutions to manufacturers, in order to support the technological advancement of lubricants in the Brazilian market, and ensure predictability in the supply”, analyzes Marcelo Guimarães, executive manager of ICONIC Base Oil.

Another planned initiative is the extension of the current tank basin of the Caxias plant, which will be possible thanks to the acquisition of land around the unit and which will allow a growth of the installed capacity of the basin of up to 30%.

The new ICONIC Technology Center (CTIC) is another major initiative of ICONIC, scheduled for launch in 2024. The idea is to take the current Center, located in São Cristóvão, into the facilities of the Caxias factory. The works have already begun and the promise is that CTIC will consolidate itself as one of the largest and most important private laboratories in Latin America, reinforcing its position as a reference in the lubricants market with high technological and human investment.

Another initiative is the construction of a new high-capacity automated warehouse within the Caxias plant and fully integrated with the company’s production lines and main distribution channels. “We are working with consultants specialized in logistics and evaluating the scenarios to decide on the best technical/commercial alternative, layout alternatives, storage systems and high technology to bring a safe, efficient and reliable solution”, points out Marcio.

All these initiatives are coordinated by a master plan, to ensure an orderly growth of the Caxias and Osasco units, and connected with ICONIC’s strategic planning. Industrial architecture firms were hired to ensure logical and optimized sequencing of internal flows. At the Osasco plant, the master plan aims to open up production capacity for the production of greases and coolants, which are product lines that the company intends to continue investing in the coming years.

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