TotalEnergies, a major oil and energy company from France, recently announced its acquisition of STR Tecoilin, a Finnish motor oil recycler. The company’s technology is considered the most efficient on the market and allows lubricant factories access to high-quality recycled base oil. According to Juha Kokko, CEO of STR Tecoil, Total’s interest was piqued by the ongoing green transition. As Total produces significant amounts of lubricants, it wants to be involved in the recycling of base oils.
STR Tecoil collects waste oil and regenerates it into usable lubricating oil for vehicles and industrial equipment. Their technology allows for the recycling of lubricating oil multiple times, with a yield rate of about 75%. The company, owned by Mihail Malkov, was acquired by TotalEnergies for an undisclosed purchase price. While their financial results are not publicly disclosed, the acquisition is notable based on their growth in recent years. In 2022, STR Tecoil generated a profit of 9.1 million euros with a turnover of 54.5 million euros. Their turnover in 2023 was 54.6 million euros with a profit of 3.0 million euros, and Kokko expects better results and increased turnover in the current year under Total’s ownership.
TotalEnergies is one of the world’s largest oil and energy companies with substantial operating profits. With this acquisition, STR Tecoil aims to expand its business and grow further under Total’s resources and support.
The potential for growth under Total’s backing is significant as Kokko highlighted it during his statement. He emphasized that the company’s commitment to enhancing STR Tecoil’s business would provide opportunities for expansion and investment in the industry with Total’s extensive workforce and capabilities.
STR Tecoil operates in Hamina but remains optimistic about future growth and development under TotalEnergies ownership.
Overall, this acquisition signifies an opportunity for both companies to expand their reach while contributing towards a greener future by promoting efficient waste oil recycling methods.