In brief: contract manufacturing (also known as OEM, Original Equipment Manufacturer) of energy products is the service through which a company entrusts an external manufacturer with the blending, formulation and packaging of fuels, solvents and lubricants, produced under its own brand or to its own technical specification. The client defines the product, the specifications and the packaging; the third-party manufacturer provides plants, blending know-how, quality control and, when the products are under excise duty suspension, a tax warehouse authorised by the Italian Customs and Monopolies Agency (ADM). It is the typical solution for those who want to bring their own product line to market without building and running their own plant.
When contract manufacturing is the right choice
Relying on an OEM manufacturer makes sense when a company has a product, a brand or a specification, but does not have (or does not want to tie up capital in) an authorised blending and packaging plant. The most frequent cases:
- Brands and distributors that want to launch or expand a line of special fuels, solvents or lubricants under their own brand (private label).
- Industrial companies that need solvents or technical blends to a dedicated formulation, in defined quantities and packaging.
- Energy sector operators looking for additional blending and packaging capacity, with the fiscal coverage of an ADM-authorised warehouse.
- Importers and traders that want to process or package energy products in Italy, under duty suspension, before release for consumption.
What P.S.P.’s OEM service includes
P.S.P. Passerini Special Products operates in Parona (PV), in the last chemical hub of Northern Italy, in a plant of about 1,200 sqm adjacent to the Mortara Intermodal Terminal. The activity is classified under ATECO 19.20.9 and includes production, blending and an ADM-authorised tax warehouse. On a contract basis we offer a complete service covering the entire cycle, from the receipt of raw materials to the shipment of the finished product:
- Blending and dosing with an automatic line, to ensure repeatability of the blend and compliance with the client’s specification.
- Formulation and product development, starting from the client’s specification or with technical support to fine-tune the recipe.
- Packaging in different formats and types of packaging, according to brand and distribution needs.
- Custody under excise duty suspension for energy products, with registers and reconciliations compliant with ADM obligations.
- Electronic movement e-AD / e-DAS (EMCS) inbound and outbound, with discharge.
- Logistics and distribution over the intermodal network, thanks to the proximity to the Mortara Intermodal Terminal.
The production scope covers the full range of energy and chemical products: special and additivated gasolines, diesel fuels, HVO and biofuels, kerosenes, methanol and alcohols for automotive use, solvents and hydrocarbons, vegetable oils and fats, lubricants, additives and additive packages, as well as racing fuels to specification. Racing is a long-standing specialisation, not the boundary: P.S.P. is a full-range energy and petrochemical operator.
Sectors served
P.S.P.’s contract manufacturing service is aimed exclusively at professional B2B operators, including:
- Automotive and motorsport (special fuels, additives, lubricants for competition and professional use).
- Fuel and energy distribution (private label, HVO and biofuels, additives for the network).
- Chemical and manufacturing industry (technical solvents, hydrocarbons, blends to specification).
- Industrial maintenance and lubricants (oils and dedicated formulations).
Confidentiality, quality and control
Whoever entrusts a formulation to a third-party manufacturer also entrusts their own know-how. That is why P.S.P.’s contract manufacturing is based on three principles.
Confidentiality. The client’s specifications, recipes and commercial data are treated as confidential and can be protected by non-disclosure agreements (NDA). Ownership of the formulation remains with the client.
Quality and control. Every process is traced according to the warehouse’s documentary obligations. Automatic dosing ensures repeatability of the blend, while product checks verify compliance with the agreed specification before shipment.
Fiscal and customs compliance. Operating within an ADM-authorised tax warehouse, energy products are managed under excise duty suspension, with electronic filings in accordance with the rules. This allows the client not to tie up capital in taxes until release for consumption.
An important clarification on sustainability claims: any RED III attestations, mass balance or ISCC certification relating to HVO and biofuels belong to the supply chain and to the certified suppliers, and must be attributed to the latter. P.S.P. manages production, blending and product logistics.
Why a partner with an ADM-authorised tax warehouse
The difference between a simple blender and a complete OEM partner lies in fiscal coverage. Producing fuels and energy products inside an ADM-authorised third-party tax warehouse means being able to process, store and move goods under duty suspension, without advancing excise duties at every step. For a branded line it is the most efficient way to oversee the supply chain, from raw material to the finished packaged product, through a single point of contact. The same applies to HVO and biofuels B2B projects, where the tax warehouse is a central piece of the chain.
Frequently asked questions
What is the difference between contract manufacturing and third-party warehousing?
In third-party warehousing P.S.P. stores and moves goods owned by others, without processing them. In contract manufacturing (OEM) P.S.P. makes the product: it blends, formulates and packages fuels, solvents or lubricants to the client’s specification or under the client’s brand. The two services can be combined.
Can I produce under my own brand (private label)?
Yes. The OEM service is designed precisely to make products under the client’s brand, with packaging and specifications defined by the client, while retaining ownership.
Does my formulation remain confidential?
Yes. The client’s recipes and specifications are treated confidentially and can be covered by a non-disclosure agreement. Ownership of the formulation remains with the client.
What quantities do you handle?
We assess case by case, based on the product, the specification and the packaging needs. Contact us for a feasibility analysis and a dedicated quotation.
Who can buy or commission these products?
The service is reserved for professional B2B operators. Fuels, methanol, nitromethane and mixtures with precursors cannot be sold to private individuals (Reg. EU 2019/1148). For these products, the legal constraints on operations between professional parties apply.
👉 Want to explore production under your own brand or to your specification? Request a quotation · www.pspsrl.com · info@pspsrl.com · +39 0384 253320
Related links: Services · Catalogue/Shop · related articles: Third-party tax warehouse · HVO and biofuels B2B.