Leading Canadian agribusiness Richardson International has acquired vegetable oil-based drilling fluids manufacturer Control Chemical Corporation.
Previously a minority shareholder in Control Chemical, Richardson said on 10 August that it had been supplying raw ingredients to the firm for over 30 years.
“This partnership will be beneficial to both companies, as historically speaking, Richardson is our largest supplier of crude canola oil,” Control Chemical Corporation retiring principal John MacPhail said.
“With petroleum oil prices increasing, we are in a unique position to reach new and more expansive markets for environmentally safe downhole, torque-reducing lubricants.”
Control Chemical manufactures a full range of drilling fluids – some marketed under the Matex brand name – from its facility in Calgary, Alberta.
The company has a network of distribution partners in North America, South America, Australia, Africa, South East Asia, Mongolia, Scandinavia, the United Kingdom, Turkey and Russia.
“This is a unique opportunity to diversify our business and expand into innovative products derived from the core commodities we handle,” Control Chemical Corporation senior vice-president, (processing, food, and ingredients) Darrell Sobkow said.
Richardson said its oilseed crushing plant in Lethbridge, Alberta, would continue to supply crude canola oil stock for Control Chemical products.
Winnipeg-based Richardson is a worldwide handler and merchandiser of all major Canadian-grown grains and oilseeds and a vertically-integrated processor and manufacturer of oats and canola-based products.
The company produces a wide variety of food products and ingredients for the retail, food service, and industrial markets.
Established in 1989, Control Chemical Corporation is a manufacturer of drilling fluid systems and proprietary vegetable oil lubricants – under the Matex brand name.