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LiquidPower Specialty Products Opens New Manufacturing Plant

(BRK.A), (BRK.B)

Berkshire Hathaway’s LiquidPower Specialty Products Inc. (LSPI), has opened a new drag reducing agent (DRA) manufacturing plant.

Berkshire Hathaway acquired the company in 2014, and it was previously known as ConocoPhilips Specialty Products.

The second facility, located within LSPI’s manufacturing complex in Bryan, Texas, doubles LSPI’s capacity and ensures that LSPI continues to meet growing global demand and maintain its global leadership position.

“With this significant expansion, LSPI is well-positioned to continue its strong history of growth, supply reliability and quality manufacturing. We are fortunate to have long-term commercial relationships with industry leaders and we are confident that our expanded capabilities will allow us to continue to meet the needs of our customers and remain the global leader in the DRA market,” said Mike Brown, CEO and President of LSPI.

LSPI’s two independent manufacturing facilities on the same complex offer production-supply reliability through redundancy and significant economies of scale. Each facility will maintain its own day-to-day operational staff, producing DRA from raw material to finished product. While quality control labs are located within each manufacturing plant, the same quality management team will oversee both facilities to ensure consistently high quality. Both manufacturing plants will also be managed under LSPI’s rigorous HSE programs. The new facility will be supported by our existing robust global supply chain network, providing supply flexibility and agility for delivery for our customers around the world.

LSPI specializes in maximizing the flow potential of hydrocarbon pipelines by increasing operational flexibility and throughput capacity while substantially increasing bottom-line profit for its customers. LSPI’s technology, developed in the 1970s, uses DRA to lower frictional energy loss by reducing turbulence in the pipeline. This technology allows pipeline operators to increase throughput and reduce energy costs while limiting capital investment.

Since inception, LSPI has continued to develop innovative solutions, working with customers in over 40 countries on 6 continents, and treating tens of millions of barrels of hydrocarbon liquids per day. LSPI has the most extensive DRA patent portfolio in the world with 57 granted US patents, numerous patents pending, as well as a significant international patent portfolio. LSPI’s portfolio of application-specific flow improvers offers reliable DRA performance and maximum profitability.

LSPI’s DRA offering is part of a comprehensive, full-service solution that encompasses industry-leading technology, quality manufacturing, experienced technical support and consulting, reliable supply chain, and injection equipment and field service. The new facility is one of many efforts undertaken by LSPI to ensure that our customers continue to receive best-in-class DRA service.

© 2017 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.