(BRK.A), (BRK.B)
Lubrizol, a wholly-owned company of Berkshire Hathaway, has decided to close its Latexo, Texas manufacturing facility. The plant was acquired by Lubrizol in December 2014 when it purchased the oilfield chemicals business from Weatherford International PLC.
At the time, the acquisition was valued somewhere in the realm $750-$825 million.
The Latexo facility produces chemical treatments for oil and gas production and produces waters, as well as additives for drilling, work-over and stimulation operations. The facility currently has 40 employees.
Lubrizol anticipates shuttering the Latexo facility in the first quarter of 2017, after it has finished transitioning production to other facilities.
Lubrizol says that everything possible will be done to ensure that the employees are treated with respect and compassion as the transition takes place, and employees affected by the plant closure will be offered severance packages.
© 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.