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Haltermann Solutions Announces NEW Price Increase-Effective Jan 17th, 2011

Fri, Dec 10th 2010, 07:44 by Josh Petersen

December 8, 2010
Subject: Haltermann Solutions Announces Price Changes – Effective Monday, January 17, 2011

Dear Valued Haltermann Customer,

Haltermann Solutions will be implementing a price increase for most of its fuels with the exception of HF 0437 (Tier II EEE) and HF 0003 (EEE Lube Cert). These prices will be effective Monday, January 17, 2011.

For all customers using blanket pricing, please ensure that the new blanket prices are uploaded by the effective date. Haltermann will verify that the blanket prices are reflected in customer systems prior to the effective date to minimize any chance of delayed shipments. Due to a recent upswing in raw material pricing, we are forced to implement this price action.

Raw material pricing has been steadily increasing the past few months for most of our blend stocks. Given this trend, we must increase the price of all gasoline products by an average of $0.27/gallon, oxygenated gasoline products by an average of $0.21/gallon and diesel products by an average of $0.27 per gallon.

Inventoried fuels will be adjusted by the exact raw material cost change instead of by an average increase. The price of inventoried fuels, both bulk and drummed, as well as specially formulated made-to-order bulk and drum fuels are all impacted.

We are pleased to announce, however, that the price of HF 0437 (Tier II EEE) and HF 0003 (EEE Lube Cert) will remain unchanged.

To determine the price impact on the specific fuels you purchase, please contact your Haltermann Solutions customer service representative or your Account Manager.

Over the past several years, our pricing actions have been consistent with our previous price announcements in which we committed to the following:

  1. If the variation, up or down, in Haltermann’s raw material pricing is relatively small, Haltermann is committed to maintain price levels to help stabilize fuel prices as we did with our diesel pricing for the first quarter of 2010.
  2. If, however, the cost of our raw materials changes, in either direction, up or down, beyond a pre-determined level, we adjust our pricing accordingly. Effective January 17, 2011 we must implement price increases for most of our gasoline, oxygenated gasoline and diesel products.

We know how much effort is needed by our customers to implement price adjustments. At this point, we continue to find it necessary to continue regular adjustments due to changing raw material prices. If raw material prices again stabilize, we will strive to reduce the frequency of price adjustments and provide more price stability.

We sincerely appreciate your continued business with Haltermann Solutions. Please contact your Haltermann Account Managers, Elisha Petersen (313-806-9172) or Josh Petersen (615) 812-7063), your customer service representative (800-969-2542) or me, personally, should you have any questions.

Sincerely,

Wayne Petersen
President and General Manager
Haltermann Solutions
Office (832) 376-2213
Mobile (713) 857-8708
www.haltermannsolutions.com
wepetersen@jhaltermann.com

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December 2010 President’s Corner

Thu, Dec 9th 2010, 14:39 by Wayne Petersen

There is certainly a lot to talk about this month as the year draws to a close.

First, take the time to read this month’s Tech Talk written by Dr. Mathur, Haltermann Solution’s R&D Director. It involves the custom fuel development process. More specifically, it addresses the importance of collaborating with Haltermann technical personnel to create fuel specifications with proper specification limits that will enable Haltermann to create a fuel that not only meets your needs but also will allow us to manufacture it consistently and reliably.

Next, Haltermann is announcing a price increase for most of our gasoline and diesel products, effective Monday, January 17, 2011. The price adjustment is necessary given the steadily upward trend of raw material prices over the past few months. We know how much effort is needed by our customers to implement price adjustments. At this point, we find it necessary to continue these regular adjustments due to upward movement of raw material prices. If raw material prices again stabilize, we will strive to reduce the frequency of price adjustments and provide more price stability.

Finally, it’s been an exciting year for Haltermann Solutions as we have endeavored to continue to put elements in place to better serve our customers. Probably the most exciting news was that in September, we changed our specialty fuel division’s identity to Haltermann Solutions to better reflect what we offer our customers on an ongoing basis. At the same time, we launched an exciting new company website. In addition, below are even more accomplishments that have impacted you in 2010:

Formulated Euro Stage IV and Euro Stage V diesel fuels and maintain them in drummed inventory
Maintain drums of JP-8 in inventory
Developed ability to supply un-denatured Brazilian ethanol
Optimized assets and lowered manufacturing cost of HF 0580 in both bulk and drums and passed the entire savings back to our customers
Completed a tank expansion project at our Hamtramck facility resulting in greater manufacturing agility for our customers
Held a sales promotion for all of our customers during the entire month of October which provided significant savings
Installed a new phone system at Haltermann headquarters, ensuring that you will get a live voice and/or a quick response to your inquiries when you contact us
Blended a bio-fuel which was sold to a racing team in the automobile racing market
Changed our market identity to Haltermann Solutions
Established a new logo for our company
Launched our new website: www.haltermannsolutions.com

We hope to have a similar list of accomplishments in 2011 as we listen to you and continue to implement changes and improvements to better serve your needs.

In November, Automotive Industries magazine featured an article about Haltermann Solutions by conducting an interview with Wayne Petersen, Haltermann’s President and General Manager. It provides a good overview of Haltermann Solutions, its products and mission to provide customer unique “solutions” involving their fuels. A copy of the article can be found in our news section.

All of us at Haltermann Solutions want to thank you for your continued business in 2010. Thank you for continuing to trust us with your specialty fuel needs.

Haltermann Solutions extends our best wishes for a wonderful holiday season and coming New Year.

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Development of realistic fuel specifications while meeting customer needs and expectations

Thu, Dec 9th 2010, 12:43 by Indresh Mathur

At Haltermann Solutions, we strive to meet our customers’ needs and expectations. This process starts with our customer submitting a custom fuel specification sheet http://haltermannsolutions.com/pdf/custom_fuel_request_form.pdf which can be accomplished by submitting the request on-line or by downloading a custom fuel specification sheet and submitting it at the customer’s convenience. This step formally starts the development process to develop a fuel that would meet the desired performance expectations while ensuring our capability to produce the fuel reliably. The next step entails a dialogue with our customer to ensure that the desired specification has taken into account the precision and repeatability (r) of the analytical method used to measure a given specification parameter, the reproducibility (R) among different labs measuring the same parameter and the variability inherent in manufacturing numerous blends of the same fuel.

In an effort to describe the importance of proper specification limits, we have given an example below:

We were asked by one of our customers to formulate a fuel as shown in the specifications given in the attached table. If we had agreed to manufacture this fuel and accepted the specifications proposed by this customer, there would have been a good likelihood that we would not have been able to meet our customer’s needs a percentage of the time. This would happen either because a) certain analytical methods were not precise enough to measure a given parameter or b) the minimum and maximum values expected by the customer were outside the variability of the measurement and the variation of the manufacturing process. To prove our point to the customer, we produced four samples of this fuel in our lab under controlled conditions (manufacturing scale would present additional challenges and variation). Sixteen samples of the same fuel were sent out to 4 different analytical laboratories. Blind analysis (i.e. no specifications or targets provided to the analytical lab) was performed to ensure there was no bias in the results.

Data and results are given below. Statistical analysis was performed on the lab results of the analytical data compiled. You will notice that some parameters proposed by the customer for this fuel were outside the minimum / maximum range predicted by our data or the reported ASTM reproducibility (R) for those methods. These are highlighted in pink color on the attached table. You will also notice that one of the specification parameters (MTBE content) was requested at 0.05%, maximum, whereas the detection limit for the analytical method is 0.2%.
We hope this example has demonstrated to you the importance of proper specification development. We will make every attempt to resolve these issues during our dialog with you regarding your new custom fuel requests. We want to meet your needs but only within our manufacturing and analytical capability to do so.

Click on the table below to view PDF file