Home / Press Releases / Karelsky Okatysh and LUKOIL have launched a joint project for automated distribution and accounting of lubricants

Karelsky Okatysh and LUKOIL have launched a joint project for automated distribution and accounting of lubricants

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Karelsky Okatysh, a leading iron ore mining and processing plant in Russia (part of PJSC Severstal), together with LLC LLK-International (a 100% subsidiary of PJSC LUKOIL) have implemented an oil distribution system that is unique for the Russian industry ... The goal of the project is to reduce the cost and consumption of lubricants by transferring to the manufacturer service maintenance of the supply, storage and accounting processes.

Karelsky Okatysh annually consumes about 1.6 thousand tons of lubricants. The economic effect from the introduction of the new oil dispensing system will amount to more than 30 million rubles per year.

Until 2019, Karelsky Okatysh had several suppliers of lubricants, and there were more than 50 purchased items in the lineup, there was no accounting for consumption by units of equipment. The plant also bought products in barrels that needed to be disposed of, and refueled the equipment with pneumatic pistols, which affected the speed of service.

“LUKOIL was able to offer a turnkey solution to the problem. The partners took over not only the supply of the product, but also the service for its replacement, tracking the use. We have resolved the issues related to the monitoring of lubricants, accounting for residues has become easier. A large team of Severstal specialists from Moscow, Cherepovets, Kostomuksha, Olenegorsk worked on the project for Karelsky Okatysh. Now we can replicate this experience to other Severstal enterprises with adaptation to the conditions of specific assets, "said Irina Povoroznik, Deputy Director for Raw Materials Sales, Procurement and Logistics at Severstal.

A special oil storage is equipped in the plant's repair shop , which is a few large containers. Materials are delivered here in tank trucks, and then distributed to oil filling stations by pipeline - to stationary posts. At each stage of the movement of oils, they are electronically recorded. Karelsky Okatysh and LUKOIL receive information online.

“We offered our client not only high-quality products, but also a service that would increase operational efficiency and reduce the risks of equipment downtime. Today LUKOIL is implementing a service program at one of Severstal's enterprises; in the future, we intend to offer service solutions for other partner enterprises as well, "said Kirill Vereta, General Director of LLK-International.

Today, they are working in the repair building three stationary oil dispensing stations. The employee just needs to attach his electronic pass to the terminal and enter the equipment code. Refueling starts automatically, filling the 1000 liter tank takes just over 20 minutes. Previously, when refueling from barrels, it took about an hour. Each post is equipped with reels for dispensing oils, which allows you to simultaneously refuel four cars. Two more auxiliary posts will be launched in November in an additional repair box and in the Western open pit of the plant. In addition, three mobile stations based on KamAZ vehicles deliver oils directly to the quarries.

“In addition to reducing costs during the implementation of this large-scale project, we received an additional effect. If earlier we put the car for maintenance, and then sent it to another box for troubleshooting, now both maintenance and repairs can be carried out in one place. This shortens the time, simplifies logistics and repair planning. In my opinion, this is a vivid example of the implementation of Severstal's new strategy. Without the well-coordinated work of different people for the water team, the project would not have taken place ", - comments Alexey Bochkarev, director of repairs at Karelsky Okatysh and Olkon.

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