(BRK.A), (BRK.B)
The Lubrizol Corporation has terminated its processor agreements with Astral Poly-Technik Limited for the manufacture and sale of FlowGuard®, BlazeMaster® and Corzan® branded pipes and fittings in India.
Lubrizol, which is the inventor of chlorinated polyvinyl chloride (CPVC), is known in India amongst the engineers, builders, constructors and plumbers for its globally approved and certified CPVC compounds used in pipes for plumbing, fire protection and industrial applications.
The move comes out of Astral Poly-Technik Ltd’s recent decision to begin local compounding of material and launch house branded lines of chlorinated polyvinyl chloride (CPVC), which is in conflict with Lubrizol’s long established and successful CPVC branded business model.
With termination of this partnership, starting from October 9, 2016, Astral will no longer have access to Lubrizol’s compound or manufacturing assistance, and will no longer be permitted to sell FlowGuard, BlazeMaster or Corzan branded pipes and fittings.
Lubrizol, the owner of the trademarks, will continue to make its CPVC brands and products available in wide distribution throughout India from other Lubrizol contracted partners.
Commenting on the termination of partnership with Astral Poly-Technik Limited, Mathew Timmons, Managing Director, Lubrizol Advanced Materials India Pvt. Ltd. said, “Lubrizol is dedicated to supplying the highest quality CPVC products to service the Indian market. Our commitment remains steadfast through our support of processors like Ashirvad Pipes Pvt. Ltd. who continue to benefit from our more than 50 years of expertise in compounding and manufacturing CPVC.”
Lubrizol in India
In February 2016, Lubrizol Corporation, a wholly-owned subsidiary of Berkshire Hathaway, opened a chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India. Lubrizol invested $50 million U.S. (INR 325 CR) in the plant, which has a capacity to produce approximately 55,000 metric tons of compounds annually.
© 2016 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.