Mazor'sEdge

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Berkshire Hathaway’s Lubrizol Corporation has selected Simko S.A. as the new distributor for the thermoplastic polyurethane (TPU) portfolio of the company’s Engineered Polymers business throughout Argentina.

Simko S.A. distributes engineering plastics, synthetic rubbers, rubber chemicals and industrial equipment for rubber and plastic industries in Argentina. They have warehouse and office facilities strategically located in San Martin near the Buenos Aires highway network.

The agreement, which took effect on October 15, 2017, but was just announced on January 3, 2018, includes the following key product lines which are well-suited for today’s innovative and demanding applications:

– Estane(R) TPU: Estane TPU products are utilized in film and sheet, extrusion, blow molding, injection molding, over molding, calendaring and solution coating processes.

– Isoplast(R) ETP: Isoplast ETP products are hard and high flexural modulus polyurethane engineering resins with excellent chemical resistance and barrier properties.

– Pearlbond(TM) TPU: The Pearlbond TPU portfolio includes products for Hot Melt Adhesives (HMA) and Reactive Hot Melts (HMPUR), typically used in automotive interior parts, bookbinding, furniture, textile and footwear.

– Pearlstick(TM) TPU: Pearlstick TPU products are designed for use in the manufacture of solvent-based adhesives.

Other products that will also be distributed by Simko S.A are: Pearlcoat(TM) TPU, Pearlthane(TM) TPU, Pearlthane(TM) ECO* TPU and Carbo-Rite(TM) Conductive Compounds and Sheet Products.

Rogerio Colucci, Lubrizol Engineered Polymers business manager for Latin America comments, “It is exciting to work with Simko S.A. as they have excellent in-depth knowledge of the engineering plastics and rubber markets in Argentina. When combined with Lubrizol’s innovative and durable TPU solutions for specialized wire and cable, adhesives, consumer and industrial applications, this will further enhance our ability to work closely with customers, helping them solve valuable problems and drive innovation and growth in Argentina.”

Eduardo Simko, CEO of Simko S.A., comments “We are proud of having been selected as Lubrizol’s new distributor. We are impressed by the wide portfolio of products and the quality of the products, as well as Lubrizol’s commitment to market development.”

© 2018 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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The U.S. Department of Energy (DOE) awarded the University of Pittsburgh Department of Chemical and Petroleum Engineering and Ohio specialty chemicals provider Lubrizol Corporation a collaborative grant for research into clean energy chemical manufacturing. The DOE grant, along with contributions from Pitt and Lubrizol, will total $7.5 million over a four-year period.

“The project will focus on applying advanced chemical engineering research to industrial-scale chemical manufacturing,” said Steven Little, William Kepler Whiteford Professor and Chair of the Department of Chemical and Petroleum Engineering at Pitt. “The Pitt-Lubrizol partnership aligns well with University efforts to work with businesses to translate research into industry practices and impact the region’s economy in a positive way.”

The grant is part of the DOE’s Rapid Advancement in Process Intensification Deployment (RAPID) initiative, a partnership between the American Institute of Chemical Engineers (AIChE) and the DOE. Both Pitt and Lubrizol are among the 45 members of the $70 million AIChE/RAPID Initiative for improving energy efficiency and industrial productivity through process intensification and modular manufacturing–two design approaches for chemical manufacturing at industry-relevant scales.

“At Lubrizol, we are working with thousands of tons of chemicals per year,” said Cliff Kowall, Lubrizol technical fellow and corporate engineer. “The end objective is to provide the design basis to allow Lubrizol to deploy these innovative processes with sharp reductions in waste generation, utility, and energy costs, capital cost, and footprint accompanied by an improvement in quality consistency.”

Kowall was integral in establishing the initial partnership between Pitt and Lubrizol, which began in 2014 with a $1.2 million Strategic Alliance agreement. The partnership brought about opportunities for students to learn about engineering needs in an industrial environment, while at the same time benefiting Lubrizol through research projects tailored to its business operations. Last month, Pitt and Lubrizol renewed the partnership, worth roughly $1 million invested over a three-year period.

“The University of Pittsburgh was by far the best fit for us to establish a relationship with a university, largely due to the enthusiasm of the Pitt Chemical Engineering leadership team,” said Kowall. “Lubrizol made a long-term commitment initially, and now we’ve extended it for three more years with the expectation of it lasting indefinitely.”

The partnership helped Pitt’s Chemical and Petroleum Engineering Department develop the course “Introduction to Chemical Product Design” (ChE 0214). Open to students in their sophomore year, the course teaches how to design products specific to a customer’s needs. In a traditional paradigm, engineering students don’t work on design projects until their senior years.

“This alliance has led to new educational programs that are first-of-their-kind in the country, exposing our students to unique opportunities to learn design principles and leading to multiple awards and even a spin-out company for our students,” said Dr. Little.

The follow-up course, “Taking Products to Market: The Next Step in Chemical Product Design” (ChE 0314), focuses on entrepreneurship and the skills necessary to successfully turn their ideas into products or companies.

“About half of the initial $1.2 million agreement went into the development of these courses and the resources to ensure our students’ success,” said Dr. Little. “Collaborating with Lubrizol directly, plus a jumpstart on product design, really gives our students a competitive advantage after graduation.”

Another feature of the partnership was the creation of the ‘University of Pittsburgh Physical Property Internship,’ which is a nine-month internship targeted at chemical engineering students who graduate in December and are intending to go to graduate school in the fall.

“This helps Lubrizol as well as the student who might have trouble finding something worthwhile to do in that rather awkward time. Three of the first four recipients became full-time employees,” said Kowall. “We have put emphasis on recruiting co-op students from Pitt. We work with the faculty to identify high potential candidates. Retention has been excellent in keeping co-op students as full-time employees.”

© 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