Clean Harbors Announces Formation of Kleen Performance Products to Accelerate Growth in Lubricants Market

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Clean Harbors Inc., the leading provider of environmental, energy and industrial
services throughout North America, today announced the formation of Kleen
Performance Products, a new business unit dedicated to the research,
development, sales and distribution of high-quality engine oils,
lubricants and other automotive and industrial products.

This new Clean Harbors business will build on the Company’s 30-year
record of innovation in oil refining processes and leadership position in
the North American market for renewable oils and lubricants.  Kleen
Performance Products will offer a portfolio of products, including
Safety-Kleen’s current EcoPower® branded lubricants and base oil produced
with re-refined oil, and the Performance Plus line of full synthetic,
synthetic blend and other finished lubricants.  These diverse offerings
position the new business unit to serve the fast-growing market for
high-performing lubricants tailored for modern engines, while supporting
the reduction of greenhouse gas emissions and carbon footprints.

“The formation of Kleen Performance Products will enable Clean Harbors to
capitalize on untapped growth opportunities in an expanding market and
dedicate more resources to product development, sales and customer
service,” said Alan S. McKim, chairman and chief executive officer of
Clean Harbors. “We are well-positioned for long-term growth, with demand
for superior lubricants being driven by the modernization of industrial
machinery, the resurgence of manufacturing and the next generation of
more fuel efficient cars and trucks.

“Additionally, the creation of this standalone business and brand allows
the Safety-Kleen organization to concentrate exclusively on its core
business of environmental services, including the collection of
approximately 220 million gallons of used oil annually,” McKim added.

The total global market for engine oils and lubricants is projected to
grow from $140 billion in 2013 to $162 billion in 2019, according to
research firm MarketsandMarkets.  About 56 percent of this increase is
expected to come from motor oil, engine lubricants and other
transportation products.

Innovator and Leader in Using Oil as a Renewable Resource

Kleen Performance Products base oil and EcoPower finished lubricants use
twice-refined oil manufactured through our innovative proprietary process
which reduces greenhouse gas emissions by up to 80 percent. These
products also require up to 85 percent less energy to produce than
lubricants made from virgin crude oil, because the used oil has already
been refined. It takes 42 gallons of virgin crude oil – versus less than
two gallons of used oil – to produce a single gallon of high-quality
motor oil. Consequently, each gallon of renewable oil that is re-refined
represents multiple additional gallons that do not need to be imported,
reducing the United States’ dependence on foreign oil.

The U.S. generates approximately 1.4 billion gallons of used engine oil
annually that can be renewed and reused versus burning it,
inappropriately disposing of it or relying on new crude oil. A fleet of
cars or trucks using one million gallons of EcoPower engine oil would
reduce greenhouse gas emissions by 3,363 metric tons, or the CO2e
absorbed in 85,230 trees grown for 10 years in an urban environment.

“Our oil is approved or complies with requirements set by major
manufacturers of gas and diesel engines. It is used successfully by
government, for-hire, private and local mass transit fleets, among
others,” said Jerry Correll, president, Kleen Performance Products. “The
global goal to reduce greenhouse gas emissions and carbon footprints is
expected to further drive demand for renewable oil and expand its
application into other transportation and industrial areas.”

EcoPower engine oil currently is used around the globe in U.S. military
vehicles, the largest fleet in the world. The EcoPower brand also is the
official oil partner of Roush Fenway Racing (RFR), the winningest team in
NASCAR history, and EcoPower engine oil is used in all RFR racecars.

Performance Plus Products Meet Growing Demand for Full Synthetic and
Other Lubricants

Another brand to be offered by Kleen Performance Products is Performance
Plus, a line of full synthetic, synthetic blend and conventional motor
oils that is expected to support accelerated growth of the Company’s
blended products. Demand for full synthetic oil is increasing to meet
regulatory standards for lower greenhouse gas emissions and improved fuel
economy. 

All Kleen Performance Products brands meet or exceed stringent North
American standards for motor oil.  These standards include American
Petroleum Institute (API) performance classifications, as well as those
of the Society of Automotive Engineers (SAE) and International Lubricants
Standardization and Approval Committee (ILSAC).  The brands also meet or
exceed the standards of major Original Equipment Manufacturers (OEMs),
including General Motors’ dexos1™ requirements.

Execution of Strategic Review

The formation of Kleen Performance Products continues the implementation
of recommendations stemming from a comprehensive strategic review of its
business portfolio that Clean Harbors announced earlier this year. The
review recommended that the Company refocus its businesses on what each
does best in order to maximize value.  In addition to creating Kleen
Performance Products and refocusing Safety-Kleen on environmental
services, Clean Harbors also is in the process of carving out its Oil and
Gas Field Services and Lodging Services segments as a standalone publicly
traded company.

Clean Harbors intends to rename as Kleen Performance Products its current
“Oil Re-refining and Recycling” reporting segment within its filings with
the Securities and Exchange Commission (SEC).
About Kleen Performance Products

Headquartered in Richardson, Texas, Kleen Performance Products is
dedicated to the sale and distribution of high-quality lubricants,
including EcoPower and Performance Plus brands, as well as Kleen
Performance Products Base Oil. Most of its products are created by
proprietary processes developed through decades of investment in
research, development and innovation. As the largest provider of
twice-refined oil in North America, Kleen Performance Products uses oil
as a renewable resource in EcoPower and its base oil, resulting in
performance equal to or better than that of lubricants made from virgin
crude. For more information, visit www.kleenperformance.com.

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