HF Sinclair Corporation has announced plans to separate its Lubricants & Specialties segment into a new independent publicly traded company, while also confirming the planned retirement of its base oil refining assets in Mississauga, Ontario.
The company expects the separation to be completed through the capital markets within the next 12–18 months. As a standalone business, Lubricants & Specialties will operate with a more flexible capital structure and a focused strategy centered on lubricant technologies, specialty products, and globally recognized brands.
Mississauga Base Oil Refinery to Cease Operations
As part of the strategic transformation, HF Sinclair will phase out base oil refining operations at its Mississauga facility, with the transition expected to be substantially completed during 2027.
Despite the refinery closure, the company will retain its presence in Ontario by continuing operations at its R&D laboratory, lubricant blending and packaging facilities, as well as its supply chain, logistics, and commercial operations.
To ensure uninterrupted supply, the future Lubricants & Specialties company will source base oils through new commercial agreements with two leading global base oil manufacturers while continuing to receive Group I and specialty products from HF Sinclair’s Tulsa refinery. This strategy will allow the company to continue offering a complete portfolio of Group I, Group II, and Group III base oils.
Greater Strategic Focus
According to HF Sinclair Chairman and CEO Franklin Myers, the separation represents a key milestone in the company’s portfolio optimization strategy, enabling both businesses to pursue their respective growth priorities with greater operational flexibility and financial discipline.
Following the transaction, HF Sinclair will focus on its integrated refining, midstream, marketing, and renewable fuels businesses, while the independent Lubricants & Specialties company will concentrate on expanding its position in lubricants, base oils, and specialty products.
Impact on the Base Oil Market
The planned retirement of the Mississauga base oil refinery marks another significant structural change in the North American base oil market. However, HF Sinclair’s decision to replace in-house production with long-term strategic supply agreements indicates that maintaining supply continuity remains a key priority.
The announcement also reflects a broader industry trend in which base oil producers are increasingly optimizing their asset portfolios, restructuring operations, and adopting more flexible business models in response to evolving global market conditions.
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