(BRK.A), (BRK.B)
Berkshire Hathaway’s wholly-owned specialty chemical maker Lubrizol has signed a deal with South Korean petrochemical company Daelim Industrial to use Daelim’s polyisobutylenes (PIBs) production technology.
PIBs are used in dispersants manufactured by Lubrizol., and Lubrizol will use Daelim’s technology in its Deer Park facility in Texas.
The U.S. is the largest market for PIBs, with applications as diverse as medicine and solar energy.
One important use of PIB is as a sealing substance for photovoltaic panel systems, and another is in the manufacture of transdermal patches for delivery of medicines. Automobile fluid suppliers also use PIBs for high-performance additives.
Daelim notes that its technology can be used to produce a range of PIBs, from the conventional to the highly reactive (HR-PIB).
“Through this agreement Lubrizol will ensure its access to process technology that offers the company multiple benefits,” states Lubrizol Additives president Dan Sheets. “It provides Lubrizol formulating flexibility to meet the evolving performance needs of the global lubricant and fuel additives markets over time.”
Lubrizol’s agreement with Daelim will enable it to move into the initial engineering phase of the manufacturing project, with commercial production expected in three years.
About Lubrizol
Based in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,500 employees worldwide. It sells its specialty chemical products in over 100 countries.
Lubrizol makes a wide-range of lubricant additives for engine oils, driveline and other transportation-related fluids, industrial lubricants, and additives for gasoline and diesel fuel.
© 2015 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.