Category: Lubrizol

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Lubrizol, a subsidiary of Berkshire Hathaway, has reaffirmed its commitment to growth in India, the Middle East, and Africa (IMEA) with the appointment of Nitin Mengi as Vice President, Lubrizol Additives, IMEA, and Chairman & Managing Director, Lubrizol India Private Limited.

This strategic move aims to strengthen the company’s presence and focus on growth in the region, emphasizing collaboration with customers, suppliers, and stakeholders.

In his new role, Nitin will spearhead efforts to drive growth for Lubrizol’s Additives business, particularly in transportation and industrial markets across the IMEA region. Working closely with Bhavana Bindra, Managing Director of Lubrizol IMEA, Nitin will play a pivotal role in executing the company’s regional strategy.

Flavio Kliger, Senior Vice President and President of Lubrizol Additives, expressed confidence in the appointment, highlighting Lubrizol’s commitment to growth in IMEA and the delivery of sustainable solutions that enhance mobility and well-being. Nitin brings over two decades of experience in the gas and oils industry across various regions, including Asia Pacific, India, the Middle East, and Africa. His expertise in leading cross-functional teams positions him well to drive Lubrizol’s growth agenda in IMEA.

Nitin expressed enthusiasm about joining Lubrizol, citing the company’s industry leadership and exciting future plans. His appointment comes at a time when Lubrizol is actively expanding its operations and capabilities in the IMEA region.

Notably, the company is investing $150 million in India, including the construction of a state-of-the-art CPVC resin plant in Vilayat, set to be the world’s largest upon completion in 2025.

Additionally, Lubrizol is establishing a Global Capacity Center (GCC) in Pune, India, to support innovation in the region.

© 2024 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 a 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.

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Lubrizol, a global player in specialty chemicals and a subsidiary of Berkshire Hathaway, has set its sights on doubling its revenue from the lucrative Indian market by 2029.

Currently, India contributes ten percent to the company’s global revenues, a figure set to skyrocket with strategic investments and expansion plans underway.

To fuel this ambitious growth trajectory, Lubrizol is injecting a substantial $150 million into its operations in India. One of the pivotal moves includes the construction of a cutting-edge CPVC resin plant in Vilayat, slated to claim the title of the world’s largest upon its completion in 2025. This state-of-the-art facility is poised to significantly bolster Lubrizol’s production capacity and meet the burgeoning demand for specialty chemicals in India and beyond.

Moreover, Lubrizol is establishing a Global Capacity Center (GCC) in Pune, India, aimed at fostering innovation and enhancing operational efficiency in the region. This strategic initiative not only underscores the company’s commitment to driving technological advancements but also positions India as a vital hub in Lubrizol’s global network.

In addition to infrastructure development, Lubrizol is ramping up its manpower, anticipating the creation of approximately 4,000 direct and indirect jobs through its new investments. This move not only bolsters employment opportunities but also underscores Lubrizol’s role as a catalyst for economic growth and development in the Indian market.

Furthermore, recognizing the burgeoning demand for CPVC compounds, Lubrizol has doubled its compound capacity at its Dahej, Gujarat, facility. This expansion reinforces Lubrizol’s commitment to meeting the evolving needs of its customers in India, further solidifying its position as a trusted partner in the specialty chemicals sector.

© 2024 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 a 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.

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Bhavana Bindra has been appointed as the Managing Director for India, Middle East & Africa (IMEA) at The Lubrizol Corporation, a subsidiary of Berkshire Hathaway. This newly created role reflects Lubrizol’s dedication to achieving ambitious growth targets and sustaining its presence in the region.

With more than twenty years of experience in the manufacturing industry, including roles at esteemed companies like REHAU and Cummins India, Bhavana brings a wealth of leadership and industry expertise to her new position. Her appointment signals Lubrizol’s strategic intent to leverage her skills to drive growth across the IMEA region.

In her role as Managing Director, Bhavana will lead Lubrizol’s IMEA team in delivering regional growth opportunities for both the company and its customers, utilizing a local-for-local approach. Collaborating closely with Lubrizol’s leadership, Bhavana will focus on identifying localized market opportunities and strengthening relationships with customers, suppliers, and stakeholders in the region. Additionally, she will oversee the operations of Lubrizol’s new Global Capability Center in Pune, India, which will serve as a key regional hub enhancing the company’s capabilities for further growth.

JT Jones, Senior Vice President of High Growth Regions at Lubrizol, expressed excitement about the appointment, emphasizing Lubrizol’s commitment to supporting customers and partners in the India, Middle East, and Africa regions. He highlighted the exceptional talent present across the region and affirmed Lubrizol’s plans to expand its team and footprint to better serve local markets.

This appointment aligns with Lubrizol’s broader commitment to the region, including a substantial $150 million investment in India aimed at accelerating growth. Notably, this investment encompasses the construction of a cutting-edge CPVC resin plant in Vilayat, India, slated to become the world’s largest CPVC resin plant upon its completion in 2025.

© 2024 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 a 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.

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Berkshire Hathaway-owned The Lubrizol Corporation and BASF Corporation have inked a significant licensing agreement for the production and distribution of select EMGARD® and Plurasafe® industrial lubricant products. Effective April 1, 2024, these licensed products will be seamlessly integrated into Lubrizol’s CPI Fluid Engineering brand.

The agreement encompasses a range of BASF products, including EMGARD 2946; EMGARD CL 4046, 4068; EMGARD EP WG 680; EMGARD HT CL 5220, 5320; Plurasafe CL 6032, 6046, 6068; Plurasafe P 44; and Plurasafe WGF 200 E. This collaboration marks a strategic move for both companies to better cater to specific customer requirements in the industrial lubricant market.

Brian Lieberman, Vice President of Fuel and Lubricant Solutions at BASF, expressed confidence in partnering with Lubrizol, citing the company’s expertise and ability to address niche customer needs. Meanwhile, Michael Brubaker, Vice President of Lubrizol Fluid Engineering, emphasized the agreement’s significance in bolstering Lubrizol’s extensive portfolio of Industrial Lubricants, further underscoring the company’s commitment to quality and customer satisfaction.

With Lubrizol boasting over 95 years of experience in researching, developing, and manufacturing specialty high-performance lubricants and BASF’s global presence, the collaboration is poised to deliver enhanced solutions to industrial lubricant customers worldwide.

BASF has taken proactive measures to ensure a smooth transition for affected customers, providing ordering and delivery details for related products. This seamless integration underscores the commitment of both organizations to prioritize customer satisfaction and market leadership in the industrial lubricant sector.

© 2024 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 a 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.

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In a significant stride towards sustainability, Lubrizol Advanced Materials proudly announces that three additional sites within Lubrizol Engineered Polymers have secured the International Sustainability and Carbon Certification (ISCC) PLUS certification. This achievement, obtained at the close of the previous year, underscores Lubrizol’s commitment to environmentally responsible practices.

ISCC PLUS is an esteemed international sustainability certification designed for industrial applications. It sets the standard for fully traceable and sustainable supply chains, enabling companies to monitor and attribute environmentally friendly raw materials throughout the entire value chain. This is accomplished through transparent record-keeping, all without altering the production process.

The three sites that have attained this third-party qualification are Lubrizol Advanced Materials’ headquarters in Brecksville, along with the production plants in Avon Lake, Ohio, U.S., and Oevel, Belgium. This accomplishment follows the ISCC PLUS certification received by Lubrizol’s facility in Songjiang, China, last year. These certifications align with Lubrizol’s dedication to sustainability and the expansion of its ESTANE® TPU sustainable solutions, applicable in various industries such as footwear, electronics, and industrial applications.

Dr. Jesús Santamaria, Global Sustainability Business Director for Lubrizol Engineered Polymers, highlighted the impact of ISCC PLUS on their products, stating, “ISCC PLUS enables a fully transparent biomass balance approach and leads to the decrease of the Product Carbon Footprint (PCF) of our final product. This builds up on the launch of our ESTANE RNW TPU solutions which reduces the PCF with the existing equipment used by our customers, without any change in the production process or final material properties.”

Elizabeth Grove, Chief Sustainable Officer at The Lubrizol Corporation, emphasized the strategic importance of ISCC PLUS certification, stating, “Obtaining ISCC PLUS certification is an important step in ensuring that Lubrizol has a single, consistent, corporate-wide process across our organization to track materials. As we increase our use of bio-based and renewable materials, Lubrizol’s customers are provided even more confidence in our ability to credibly trace these materials through our manufacturing process.”

By adopting the mass balance approach and incorporating the ISCC PLUS external verification system, Lubrizol aims to expand the use of alternative feedstocks. This move supports the acceleration of Lubrizol’s global sustainability journey, demonstrating a commitment to collaborating with partners and building alliances to develop solutions that have positive impacts on the environment and society, outweighing the footprint it takes to produce them.

© 2024 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 a 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

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Warren Buffett’s Berkshire Hathaway, known for its strategic acquisitions, has gone the other direction with the sale of Lubrizol Life Science business group Inc. from its portfolio.

The buyer, Agno Pharma, which purchased the company from Berkshire’s The Lubrizol Corporation, is a prominent US-based global pharmaceutical contract development and manufacturing company, is set to leverage this acquisition to enhance its capabilities and services.

The acquisition encompasses the drug product formulation technology associated with Particle Sciences Inc., as well as its development and manufacturing site located in Bethlehem, PA, which employs approximately 65 professionals.

The sale of the unit is a reverse for Lubrizol, which in 2019 had incorporated Particle Science into its Lubrizol Life Science business group. At that time, Lubrizol had also acquired Bavaria Medizin Technologie GmbH, a German contract development and manufacturing organization of intravascular and nonvascular devices.

Particle Sciences, established in 1991, specializes in pre-clinical and clinical stage drug product formulation, offering a comprehensive range of services, including analytic, bioanalytic, physical characterization, and manufacturing. The company excels in handling poorly soluble and highly potent compounds in both sterile and non-sterile environments.

Agno Pharma’s move to acquire Particle Sciences aligns with its strategy to broaden its capacity and capabilities in drug product formulation and clinical manufacturing services on a global scale. The acquisition positions Agno to make significant investments in clinical-scale manufacturing services, expanding from sterile liquid manufacturing and filling to the micronization of sterile powder filling capabilities.

© 2023 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 a 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.

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Berkshire Hathaway’s Lubrizol Corporation, a prominent player in the specialty chemicals and additives industry, has taken a significant step to bolster its presence in the flourishing lubricant and fuel additives market in Bangladesh. The company recently unveiled a strategic distribution agreement with IMCD Group, a globally recognized distributor and formulator of specialty chemicals and ingredients.

Under this new collaboration, IMCD will assume the role of distributing Lubrizol’s cutting-edge technology to an expanding customer base in Bangladesh. This initiative is designed to empower local customers in the formulation of high-performance finished fluids and lubricants, catering to the nation’s growing demand for quality lubricants. It is projected that the finished lubricant market in Bangladesh will experience a Compound Annual Growth Rate (CAGR) of 3-5%.

Lubrizol’s commitment to this endeavor is underscored by Flavio Kliger, Senior Vice President and President of Lubrizol Additives, who stated, “We see tremendous growth potential in South Asia, and that’s why we are investing in the region and committing to fully supporting oil marketers in Bangladesh. This new agreement with IMCD will allow us to reliably service the growing number of additives customers in the country with our high-performance technology.”

The increased need for lubricants and finished fluids in South Asia is being primarily driven by rapid urbanization and industrialization across the region. With growing vehicle fleets and evolving industrial requirements, the demand for high-performance lubricants, fuels, and fluids is on the rise.

Sanjeev Kaul, Vice President of India, Middle East, and Africa for Lubrizol Additives, emphasized the importance of this move, stating, “Bangladesh is an evolving marketplace and requires our dedicated support. Together with IMCD, we are fully equipped to provide that support to a growing customer base.”

This partnership between Lubrizol and IMCD is not their first collaboration. They have previously worked together to distribute additives in various global markets. Their shared successes in India and Africa have played a significant role in expanding their cooperation to Bangladesh.

Narendra Varde, Managing Director of IMCD India & Bangladesh, expressed his enthusiasm, saying, “Lubrizol has been our partner in India for the past four years, and we are now excited to strengthen this relationship by expanding into Bangladesh. With our proven track record of successfully nurturing and expanding businesses in India, bolstered by Lubrizol’s cutting-edge technology and unwavering support from their dedicated team, we are confident in our ability to replicate the success in this region. This collaboration will result in a higher level of service and support for Bangladesh oil marketers looking to distinguish themselves from competitors.”

Flavio Kliger further emphasized their commitment to high-growth markets in the Asia-Pacific region, noting that “Our ongoing relationship with IMCD is proof positive of our investment in high-growth markets, and we’re excited for a mutually successful future.”

Kailash Sawant, Director of Sales for India and South Asia at Lubrizol Additives, underlined the importance of delivering an exceptional customer experience, stating, “We have selected IMCD as our new route to market to cater to Bangladesh customers and enable improved services to every single customer.”

With this strategic partnership, Lubrizol and IMCD are poised to make significant contributions to Bangladesh’s lubricant and fuel additives industry, leveraging their expertise and cutting-edge technology to meet the evolving needs of the market and contribute to the nation’s economic growth.

© 2023 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.

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In a significant development for the Indian piping industry, Berkshire Hathaway’s Lubrizol, a global leader in specialty chemicals, and Grasim Industries Limited, a flagship company of the Aditya Birla Group, have initiated the construction of the first phase of a massive 100,000 metric-ton CPVC resin plant in Vilayat, Gujarat, India.

This collaborative effort is poised to revolutionize CPVC production in the region, catering to the burgeoning demand for piping applications not only in India but also in neighboring countries such as Nepal, Bangladesh, and Indonesia.

The new CPVC resin plant, situated at Grasim Industries’ complex, is set to become the largest single-site facility for CPVC resin production globally. It is designed to address the escalating need for CPVC materials in India’s construction and plumbing sectors, ensuring a steady supply of high-quality, locally manufactured CPVC resin. The plant will be equipped with Lubrizol’s cutting-edge CPVC resin manufacturing technology and will leverage Grasim’s expertise in reliable manufacturing processes.

In addition to this groundbreaking project, Lubrizol is doubling its existing CPVC compound manufacturing capacity at its Dahej, Gujarat, India site. This expansion will see production capacity soar from 70,000 metric tons to an impressive 140,000 metric tons, solidifying Lubrizol’s position as the largest CPVC producer in the region. It also distinguishes Lubrizol as the sole company with end-to-end CPVC capabilities, enabling its partners to meet the projected 10-12% annual increase in CPVC demand within the Indian market. Furthermore, Lubrizol is planning to establish a research and development center at its Dahej site, catering to the rapidly evolving needs of the Indian market.

The initial phase of the Vilayat resin plant and the expansion at the Dahej facility are scheduled to be operational by early 2025. These projects are anticipated to create over 4,000 direct and indirect job opportunities, contributing significantly to the local economy. In addition, Lubrizol is taking steps to establish a Global Capability Center in India, aimed at supporting regional growth and fostering closer collaboration among employees in the region. Over the next year, Lubrizol plans to hire 150 to 200 new employees at this location, with plans to expand its workforce further in the coming years.

Scott Mold, General Manager of Lubrizol TempRite, expressed his pride in these milestones, emphasizing that Lubrizol’s investment in India is geared toward servicing and supporting the growing demand for CPVC materials, particularly for ensuring access to clean, safe drinking water. India represents a key market for Lubrizol’s global CPVC leadership ambitions.

Lubrizol has been a pioneer in introducing CPVC into the Indian market for the past 25 years, offering a substantial economic development opportunity for the region. Today, India stands as one of the largest consumers of CPVC, primarily for plumbing pipes and fittings, and the increasing demand for clean water in residential and commercial buildings is set to propel continued growth in this sector.

© 2023 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 a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee

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Berkshire Hathaway’s Lubrizol Corporation has sold its idled Warwick Chemical Mostyn, Wales, UK, site to International Process Plants, a leading global provider of pre-owned and new process plants and equipment.

The Warwick Chemical Mostyn site, which formerly produced stain removal ingredients for detergent products, features a robust infrastructure ideally suited for various chemical applications. IPP plans to sustainably redeploy these assets to its client facilities globally, making the site and its basic infrastructure available for redevelopment to support the local community needs.

The Mostyn site is the second facility that Lubrizol has also sold this month. The company also sold its surfactant plant in Paso Robles, California, to Texas-based Coast Southwest.

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 a 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.

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Berkshire Hathaway’s Lubrizol Corporation, a global leader in specialty chemicals, has sold its surfactant plant in Paso Robles, California, to Texas-based Coast Southwest.

No price of the transaction was announced.

Headquartered in Irving, Texas, Coast Southwest is a leading full-service, chemical distribution and ingredient technology company.

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 a 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.