For more than 80 years, a Mississauga waterfront facility has produced specialized oils used in engines, machinery and industrial equipment across Canada and around the world.
That will soon change.
HF Sinclair has confirmed the base oils currently produced at its Mississauga Lubricants Centre, which operates under Petro‑Canada Lubricants Inc., will no longer be made in Canada once the company retires its refining assets at the site. Instead, those products will be supplied through agreements with global manufacturers and imported into the Canadian market.
The announcement answers one of the biggest questions raised after HF Sinclair revealed plans to end base oil refining in Mississauga: how the company would continue serving customers once local production stops.
The answer is a major shift in the supply chain — moving away from a Canadian manufacturing model toward one that relies on base oils produced by suppliers outside the country.
HF Sinclair announced this week that Chevron Products Company will supply Group II base oils and South Korea-based SK Enmove will supply Group III base oils as part of a new supply model following the planned shutdown of Mississauga’s base oil refining operations.
The move marks the end of Canadian production for a major category of base oils that have been manufactured in Mississauga for decades.
READ MORE: Canada’s largest base oil producer to end refining after 80 years in Mississauga
Base oils are the primary ingredient used to manufacture lubricants, including motor oils, transmission fluids, hydraulic fluids and other industrial products.
There are different grades of base oils, with Group II and Group III among the higher-quality categories used in modern lubricants. Group II base oils are commonly used in many automotive and industrial applications, while Group III base oils are more highly refined and are often used in premium synthetic motor oils because of their performance characteristics.
The Mississauga facility, historically known as the Clarkson Oil Refinery, currently has the capacity to produce approximately 15,600 barrels of base oil per day and has long been one of Canada’s most important sources of high-quality base oils.
HF Sinclair announced last week that it would retire the facility’s base oil refining assets as part of a broader restructuring of its Lubricants & Specialties business. The transition is expected to be substantially completed during 2027.
Under the new agreements, Chevron will provide Group II base oils, while SK Enmove will supply Group III products under its YUBASE brand. HF Sinclair’s Lubricants & Specialties business will distribute those products in Canada and select U.S. markets.
The companies have not disclosed the exact volumes that will be supplied, the specific grades that will be available or the individual facilities where all replacement products will originate.
Chevron is a major global producer of Group II base oils, while SK Enmove, based in South Korea, is one of the world’s largest producers of premium Group III base oils.
Although refining operations will end, the entire Mississauga facility is not closing.
HF Sinclair says the site will continue operating with lubricant blending and packaging operations, along with research and development, supply chain, logistics and commercial activities.
The company’s future model will rely on imported base oils and other supplies that will be brought into the operation before being used to manufacture and distribute finished lubricant products.
The decision to end base oil refining has raised concerns from Unifor, which represents approximately 250 workers at the Mississauga site.
The union has criticized the decision to move production away from Canada and has called on HF Sinclair to provide more information about how the transition will affect employees.
The facility near Southdown Road and Lakeshore Road West has a long history in Mississauga, dating back more than eight decades.
The site opened in 1943 as the British-American Oil Company refinery and later operated under Gulf Oil, Petro-Canada, Suncor and HF Sinclair following a series of corporate changes.
While the refining era at the site is coming to an end, HF Sinclair has not announced plans to close the entire 427-acre property or redevelop the lands.
Instead, the company says portions of the operation will continue supporting its lubricant business as Mississauga enters a new chapter in the history of one of its most recognizable industrial sites.
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