Australia's Southern Oil Refineries is investing A.$55 (US$50.5) million to build its second rerefinery, near Gladstone, which is expected to begin operation by November 2013.

Southern Oil Refining presently collects and re-refines used lube oils at its Wagga Wagga (informally called Wagga) site, in New South Wales.

Gladstone, approximately 550 kilometres north of Brisbane and 100 kilometres south-east of Rockhampton, in the state of Queensland, will house the second plant in the country, with a refinery three times the size that can process 100 million litres of oil a year - the same amount of waste oil that Queensland produces annually.

The Yarwun-based site, 10 km north-west of Gladstone, plans to be operational by November, with construction jobs expected to peak at 50 in the coming months.

In December 2011, the Queensland state government originally announced the Gladstone re-refinery project, stating that Southern Oil Refineries projected the plant will process up to 100 million liters (26 million gallons) per year of used oil, and that construction was to start in early 2012, processing waste lubricant oil from mining and agricultural machinery, and transport vehicles.

According to its web site, Southern Oil Refineries manufactures two grades of re-refined API Group I base oil – light (SN150) and heavy (SN250/300), for a wide range of hydraulic oil and lubrication oil blending applications.