(BRK.A), (BRK.B)
The Lubrizol Corporation, a wholly-owned subsidiary of Berkshire Hathaway, has announces the official opening of a chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India.
According to the company, the opening represents the culmination of Lubrizol’s latest industry leading investments in its global expansion of the company’s FlowGuard®, BlazeMaster® and Corzan® compound manufacturing sites.
These most recent investments, which were announced in 2013, total more than $200 million (INR1300 CR) and also include the 2015 opening of a resin manufacturing facility as part of a joint investment in Rayong, Thailand, as well as an expansion of the company’s manufacturing facility in Louisville, Kentucky.
Strategically located in the Gujarat Industrial Development Corporation (GIDC), which is one of the largest chemical parks in India, Lubrizol is the first major global producer of CPVC to establish operations in India.
With capacity to produce approximately 55,000 metric tons of compounds annually, the more than $50 million U.S. investment (INR 325 CR) in this plant further solidifies Lubrizol’s commitment to the Indian market.
Lubrizol touts the site’s prime location positions the company to serve not only the growing Indian market, but to also support the emerging growth of its FlowGuard®, BlazeMaster® and Corzan® businesses in South Asia, the Middle East and East Africa.
“Our recent expansion efforts, combined with our existing operations, positions Lubrizol to continue to be a strong market leader for many years to come,” stated Eric Schnur, president of Lubrizol Advanced Materials. “We are pleased to have an unmatched global footprint that provides our partners with reliable, high quality compounds to enable them to achieve their overall growth objectives.”
“With construction projects in non-metro cities expected to continue to increase in India, and with the central government of India aiming to build more smart cities, the demand for trustworthy piping systems is expected to rise,” said Manoj Dhar, head of TempRite® Engineered Polymers in South Asia.
“Lubrizol is dedicated to providing our customers with the highest quality piping products through our insistence of using only the best raw materials, and our new India compounding plant will use the industry’s most advanced compounding technology used in our FlowGuard, BlazeMaster and Corzan products developed in the U.S. and employed in our manufacturing sites around the globe.”
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 9,000 employees worldwide. It sells its specialty chemical products in over 100 countries.
© 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.