AMSOIL Looks Ahead for Fast Track Growth

BUSINESS: Al Amatuzio, founder of AMSOIL INC. the Superior Wisconsin, based synthetic lubricant maker, says the company will double in size in the next five years.

BY JANE BRISSETT
NEWS TRIBUNE STAFF WRITER

AMSOIL, the Superior company that manufactures synthetic motor oil, will announce to its dealers today a new management team that's expected to lead the company to more than double its size during the next five years.

Al Amatuzio, the company's founder and chief who unabashedly claims "we make the best oil in the world," sees that AMSOIL will need more expertise and energy at the top to grow. He has turned over many of his responsibilities to his son and son-in-law.

Now they'll have a team to help them.

AMSOIL, which calls itself the largest independent manufacturer of synthetic lubricants in the world, will introduce seven new vice presidents and directors to 225 dealers meeting in the Twin Ports.

The company has been preparing for a full-throttle expansion for the past couple of years. It expanded its physical presence with the purchase of the 8.5-acre warehouse at the base of the Bong Bridge once owned by Fleming Cos., a grocery wholesaler. It has about 250 employees.

"The company will become a giant corporation one of these days," predicted Amatuzio, the company's charismatic president, CEO and founder.

Amatuzio, a former jet fighter pilot, founded the company after observing characteristics of synthetic oil in jet engines -- reduced engine wear, good performance in extreme temperatures and long life. He thought, correctly as it turns out, that synthetic oil also could be used in automobiles.

He is considered by some to be a pioneer in synthetic motor oil.

Amatuzio is a native of Duluth's Raleigh Street. He served 25 years in the Air Guard and built the company after retiring from the military. Since its founding in 1972, Amatuzio has received numerous awards for his leadership in the industry.

Now at age 82 he spends somewhat less time at the office, leaving much of the company's leadership to his son, Alan Amatuzio, executive vice president and chief operating officer; and son-in-law, Dean Alexander, executive vice president and general manager. The elder Amatuzio will retire "when I hit 100," he said with a laugh.

The company is built on a multi-level marketing strategy, similar to Tupperware or Mary Kay Cosmetics, in which much of the selling is done through person-to-person contacts. AMSOIL claims 90,000 dealers around the world, some of whom are purported to be millionaires.

Officials don't disclose the company's annual revenue, but Al said it is more than a business directory's estimate of $50 million to $75 million. AMSOIL has seen annual double-digit growth since 1990, Alexander said.
All manufacturing and laboratory development takes place in Superior. Within two or three years, it is expected be located at the warehouse building, now called AMSOIL Center. AMSOIL has invested about $500,000 in the building to date, Al said.

The synthetic lubricants banner has been taken up by the big oil companies such as ExxonMobil or Shell, for which AMSOIL is no match in size. Al said his company, an independent, beats the big ones on quality, however.

"Synthetic is a term that means different things to different people," said Dennis Bachelder, senior engineer in oil licensing at the American Petroleum Institute. API has set standards for motor oils in conjunction with major automakers since the early 1980s, he said. Some of Amsoil's numerous products are API licensed.

AMSOIL uses a synthetic base for its oil, but some synthetic oil manufacturers use highly refined oil, Bachelder said. AMSOIL, Bachelder said, tends to use "very high-quality base stock."

The company does its own lab testing and field testing, Alan said.

Al told his dealers in a company magazine that Texaco once offered to buy him out. He turned down that bid and his son said he sees no way big oil could put AMSOIL out of business. "The only way they can shut us down is to compete against us and beat us, which they can't do," Alan said.

Instead, the company will continue to grow in Superior with the help of its new team, Al said. The location, though, can be a hindrance to recruiting.

"Bringing industry people to this area is a challenge," Alexander said. The severe winter weather and remote location aren't for everyone, he said.

AMSOIL is one of the top five locally owned employers in Superior, said Andy Lisak, executive director of the Superior-Douglas County Development Association.

It's one company that provides jobs for highly educated people -- with degrees in accounting, chemistry or finance, for example, Lisak said. "They don't get a lot of fanfare, but they're creating jobs year by year and they're sustainable jobs."

Although the company is quiet in its home community, it aggressively markets its products and is extending the fanfare this week to AMSOIL University, the meeting of dealers who are in Superior and Duluth attending classes to learn more about their products.

On Wednesday evening, the dealers and other guests were invited to a dinner and a surprise movie premiere. It turned out to be a 90-minute, $100,000 documentary-type production about Al's life as told by family, friends and associates.

The film is called "Albert J. Amatuzio: An American Success Story."

Premium AMSOIL Synthetic Motor Oils offer the longest drain intervals on the market, unsurpassed protection and performance that effectively extends equipment life and improved fuel economy, saving customers money at the pump and reducing the nation’s dependence on foreign oil.

"AMSOIL INC. warrants that the use of its lubricants will not cause mechanical damage to any mechanically sound equipment when AMSOIL INC. products are used in full compliance with the company's recommendations and instructions."

FULL WARRANTY

AMSOIL synthetic motor oils are formulated to surpass engine test specifications, offering protection far greater than competing motor oils for extended drain intervals. Most synthetic oil manufacturers make no claim to extended drain intervals, deferring to the maintenance schedule provided by the vehicle manufacturer. With its unparalleled oil and warranty program, AMSOIL offers consumers unprecedented protection and economics.

Another AMSOIL First

More than 20 years ago, AMSOIL began using the NOACK volatility test as a comparison tool and measurement of quality. Back then, nearly every oil tested side-by-side with AMSOIL synthetic motor oils failed, and those that passed barely squeaked by. Other oil companies paid no attention to NOACK results until Ford Motor Company made it a requirement for service fill oils, validating what AMSOIL had said all along.

THE NOACK Volatility Test
The NOACK Volatility Test determines the evaporation loss of lubricants in high temperature service. The more motor oils vaporize, the thicker and heavier they become, contributing to poor circulation, reduced fuel economy and increased oil consumption, wear and emissions. AMSOIL Synthetic Motor Oil resists high temperature volatization better than other motor oils. AMSOIL Synthetic Motor Oil maintains peak fuel efficiency and reduces oil consumption and emissions.

AMSOIL Now An ISO Certified Manufacturer
AMSOIL recently received ISO 9001:2000 certification of our Quality Management System (QMS). NSF International Strategic Registrations is the registrar that has verified our QMS meets the requirements of the ISO 9001:2000 standard, the most widely utilized quality standard throughout the world for quality management systems. ISO standards are used by over 300,000 companies worldwide setting rigorous standards for businesses, government and industry.

ISO 9001:2000 is applicable to any manufacturing and service organization providing a framework for system development that focuses on the customer, quality system performance and ongoing improvement. AMSOIL received ISO 9001:2000 registration under the scope: synthetic lubricants blending, packaging, and other fulfillment directly associated with lubricant product.

The ISO certification puts AMSOIL in line with some of the most efficient companies in the world. It is further assurance that the products and services AMSOIL provides will continue to maintain the high level of quality the company always demanded.

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