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Lubrizol

Lubrizol to Benefit From Robust Market for Medical Tubing

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Berkshire Hathaway’s Lubrizol will benefit from the robust growth projected to come from the medical tubing market over the next five years.

Analysts at Research and Markets are projecting a compound annual growth rate (CAGR) of 8.0% from 2016 to reach a total market size of USD $5.85 Billion, by 2021.

In 2014, Lubrizol acquired Vesta Inc., a maker of catheters and tubing based on silicone and thermoplastics.

According to Research and Markets, the market is mainly driven by minimally invasive surgery.

Another major factor that is expected to bring momentum to this market are increasing aging population, especially in developing countries, and the rising awareness about healthcare and the government initiatives to improve the quality of the healthcare infrastructure.

Silicone and TPE & TPE are expected to register high CAGRs between 2016 and 2021, in terms of volume. Silicone and other specialty polymers are replacing PVC due to their sterilization capabilities and microwave property, which PVC cannot sustain.

North America accounted for the largest share of the global medical tubing market and is projected to continue dominating the market during the forecast period while Asia-Pacific is projected to witness the highest CAGR during the forecast period due to the improving lifestyles of the population in the region. North America accounted for the largest share in 2015 in the medical tubing market due to focused interest of its government to provide quality healthcare facilities.

Bulk disposable tubing application is projected to account for highest market share during the forecast period. Medical tubing is widely used in the bulk disposable and dialysis applications. Bulk disposable tubing is used in blood bags used for blood transfusion, intravenous infusion tubing, drug delivery disposables, respiratory disposables, products for dialysis, laboratory disposables, wound management disposables, nonwoven medical disposables, sterilization supplies, waste disposable supplies, and others, such as diagnostic disposables. These disposable tubings are used mainly in hospitals.

Medical tubing manufactured from polymers is preferred because of their favorable properties such as resistance to sterilization condition, flexibility, inertness to body tissues & fluids.

Significant investment and the time required for product development act as a major restraint in the medical tubing market. In order to develop new and innovative products, technologies, and manufacturing processes, the market players collaborate with each other. These collaborations are expected to overcome this restraint during the forecast period.

At the time of the Vesta acquisition, Lubrizol’s Deb Langer stated that “the addition of Vesta significantly enhances our life science offerings through the combination of strong polymer technology, applications know-how and world class component manufacturing.”

© 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.

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Lubrizol

Lubrizol Announces Distribution Partnership with LEHVOSS

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The Lubrizol Corporation’s` Advanced Materials business has announced a new distribution partnership with LEHVOSS Italia S.r.l. covering Italy, for Lubrizol`s PearlbondTM TPU (thermoplastic polyurethane) for reactive hot melts (HMPUR or RHM) and shoe stiffeners, and PearlstickTM TPU for solvent-based adhesives.

LEHVOSS Italia S.r.l. is the affiliated company in Italy of Lehmann & Voss & Co., which has been selling chemical specialties for the industrial sector for more than 120 years.

LEHVOSS is a well-established distributor of chemical specialities for diverse industries, such as: plastics, adhesives, compounds and polyester resins, rubber, paints, coatings and polyurethane polymers.

Javier Tortosa, Lubrizol Engineered Polymers global adhesives business manager, comments, “With this agreement we are looking forward to expanding the growth of our specialty TPU solutions in the Italian adhesive market and delivering consistently excellent service to new customers. We expect to provide high-value, differentiated technology solutions through this partnership with LEHVOSS in Italy.”

Lubrizol`s Pearlstick and Pearlbond TPU product lines include TPU specialties used as additives to increase HMPUR crystallization speed and green strength, as well as improve adhesion to substrates, accelerate setting and open times, by applying them in the following industries and applications: transportation (component bonding), technical textiles and furniture (edge banding, profile wrapping).

© 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.

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Lubrizol

Lubrizol’s Particle Sciences Signs Deal with Glenmark for Cancer Drug

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Particle Sciences, a division of Berkshire Hathaway’s Lubrizol, has signed a deal with Glenmark Pharmaceuticals for the development and marketing of a generic version of the cancer drug Abraxane.

A Glenmark press release stated “The company has entered into a strategic development, license and commercialisation agreement with Particle Sciences Inc to develop and market a generic version of Celgene’s Abraxane product – paclitaxel protein (albumin)-bound particles for injectable suspension.”

Particle Sciences will develop the product exclusively for Glenmark, which is making a generic version of Celgene’s Abraxane, a drug that had worldwide sales in 2015 of $967 million.

Abraxane is prescribed for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease or relapse within 6 months of adjuvant chemotherapy.

“The partnership is a significant development in Glenmark’s complex generics strategy and we are pleased to collaborate with Particle Sciences given their strong technical capabilities and understanding of particulate injection products. This is a challenging product to develop and we expect it to remain a limited competition opportunity,” said Glenmark Pharmaceuticals’ Robert Matsuk, president – North America and global API.

Under the terms of the agreement, Particle Sciences will receive milestone payments during various stages of the product’s development from Glenmark, including royalties on sales.

About Particle Sciences

Acquired by The Lubrizol Corporation in 2015, Particle Sciences is a leading contract drug development and manufacturing organization with a comprehensive suite of services for the formulation, analysis and production of complex drug delivery solutions.

© 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.

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Lubrizol

Lubrizol Terminates Agreements with Astral Poly-Technik

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The Lubrizol Corporation has terminated its processor agreements with Astral Poly-Technik Limited for the manufacture and sale of FlowGuard®, BlazeMaster® and Corzan® branded pipes and fittings in India.

Lubrizol, which is the inventor of chlorinated polyvinyl chloride (CPVC), is known in India amongst the engineers, builders, constructors and plumbers for its globally approved and certified CPVC compounds used in pipes for plumbing, fire protection and industrial applications.

The move comes out of Astral Poly-Technik Ltd’s recent decision to begin local compounding of material and launch house branded lines of chlorinated polyvinyl chloride (CPVC), which is in conflict with Lubrizol’s long established and successful CPVC branded business model.

With termination of this partnership, starting from October 9, 2016, Astral will no longer have access to Lubrizol’s compound or manufacturing assistance, and will no longer be permitted to sell FlowGuard, BlazeMaster or Corzan branded pipes and fittings.

Lubrizol, the owner of the trademarks, will continue to make its CPVC brands and products available in wide distribution throughout India from other Lubrizol contracted partners.

Commenting on the termination of partnership with Astral Poly-Technik Limited, Mathew Timmons, Managing Director, Lubrizol Advanced Materials India Pvt. Ltd. said, “Lubrizol is dedicated to supplying the highest quality CPVC products to service the Indian market. Our commitment remains steadfast through our support of processors like Ashirvad Pipes Pvt. Ltd. who continue to benefit from our more than 50 years of expertise in compounding and manufacturing CPVC.”

Lubrizol in India

In February 2016, Lubrizol Corporation, a wholly-owned subsidiary of Berkshire Hathaway, opened a chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India. Lubrizol invested $50 million U.S. (INR 325 CR) in the plant, which has a capacity to produce approximately 55,000 metric tons of compounds annually.

© 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.

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Lubrizol Acquires Diamond Dispersions Ltd.

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The Lubrizol Corporation has acquired Diamond Dispersions Ltd., a company exclusively focused on the production of water-based dye and pigment dispersions for inks used in digital printing.

Headquartered in Sheffield, UK, Diamond Dispersions has established itself as a high quality, responsive and innovative producer of dispersions, gaining a significant share in this growing niche market.

Lubrizol notes that Diamond Dispersions will advance Lubrizol Performance Coatings’ goal to grow its portfolio of products that enable digital printing.

According to Sanjay Kalhan, general manager of Lubrizol Performance Coatings, “The combined technologies, knowledge and expertise of both companies will drive further innovation across product lines and position Lubrizol as the preferred partner for ink makers seeking to develop new digital print systems for this growing market. In addition to our dispersant, specialty additive and resin product lines, ink manufacturers will now have the opportunity to source fully formulated dispersions through Lubrizol.”

Diamond Dispersions is now part of Lubrizol Advanced Materials, reporting into Lubrizol’s Performance Coatings business.

The transaction includes all intellectual property, trademarks and customer lists of Diamond Dispersions. Financial terms of the agreement were not disclosed.

© 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.

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Lubrizol

Lubrizol to Benefit from Growth of Smart Coating Market

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A new report by Research and Markets, “Smart Coatings Markets 2016-2025,” highlights the growth prospects of smart coatings made by companies such as Berkshire Hathaway’s Lubrizol Corporation.

The report suggests that smart coatings have reached a stage of technological maturity where they can replace traditional anti-corrosion, anti-icing, anti-fouling, and other industrial protective coatings. These smart protective coatings will reach approximately $2 billion in sales by 2021, based on their ability reduce downtime and maintenance costs for vehicles, marine vessels, buildings and large pieces of industrial machinery.

The research also sees a new opportunity opening up for smart coatings in the consumer sector, where sales of these coatings to consumer electronics, furniture, textiles, etc., will be worth around $1 billion by 2021. Low-end self-cleaning and self-healing sprays have been available to the consumer market for many years. But durable smart consumer coatings are now reaching price points that will make them attractive to high-income consumer markets with strong use cases that can compete with anti-scratch coatings and other polishes.

In addition, the research sees the smart coatings business finding new commercial directions through the use of the latest nanomaterials and notes that developing smart coatings has become one focus for firms developing applications for carbon nanotubes and graphene.

Berkshire Hathaway and Lubrizol

Founded in 1928, and acquired by Berkshire Hathaway in 2011, the Lubrizol Corporation is a leading supplier to manufacturers in various industries, including paints and coatings, printing inks, plastics, engineered paper, textiles and packaging.

Lubrizol’s Performance Coating division focusses on surface coating innovation. Solsperse®, Lanco™ and Hycar® are well-known Lubrizol trade names within the Performance Coatings product line.

© 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.

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Lubrizol

Lubrizol to Close Latexo Plant in 2017

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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.

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Lubrizol

Lubrizol Debuts Self-Healing Thermoplastic

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The human body has had one clear advantage over plastic, get a scratch and you heal, scratch your glasses and you are out of luck. Until now.

The Lubrizol Corporation’s Engineered Polymers business, showcased several new and differentiated polymer solutions at Plastimagen 2016 in Mexico City, Mexico, on March 8-11, 2016.

Among the products it debuted was Estane® VSN 9000 Thermoplastic Polyurethane (TPU), which has unique self-healing properties and other highly desirable functional benefits such as dimensional stability and chemical resistance.

Estane VSN 9000 improves product performance and operational outcomes for designers, brands and producers of high-end eyewear frames.

The product is being marketed for eyeglasses stems and frames material, and its self-healing properties can remove scratches made during production or shipping.

With Estane VSN 9000 scratches disappear in less than a minute when placed in water that is heated to 90 degrees Celsius.

Now, if someone can just help you find your glasses when you forget where you put them.

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.

Berkshire Hathaway acquired Lubrizol in 2011 for $9 billion in cash. Revenues for 2015 were $7 billion.

© 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.

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Lubrizol

Lubrizol to Rebuild Pennsylvania Facility Destroyed by Fire

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The Lubrizol Corporation, a wholly-owned subsidiary of Berkshire Hathaway, will rebuild a $10 million warehouse that was destroyed in a fire on Tuesday, Nov. 17, 2015.

The warehouse was acquired by Lubrizol in early 2015 when the specialty chemicals-manufacturer purchased the oilfield chemicals business from Weatherford International PLC.

At the time, the deal was the biggest “bolt-on” acquisition Lubrizol had made since it was acquired by Berkshire Hathaway in 2011.

The landlord, Chapman Properties, owners of the Leetsdale Industrial Park, has presented plans to the Leetsdale Planning Commission to rebuild the Lubrizol Corp. Oilfield Chemistry site.

The Leetsdale Industrial Park is a two million square foot mixed-use facility located on the Ohio River and Route 65 outside of Pittsburgh, Pennsylvania.

Under the terms of Lubrizol’s lease with Chapman Properties, Chapman has 180 days to rebuild the warehouse from the date of the fire, which began when workers were pouring hydraulic fracturing chemicals into a production tank and quickly grew to a five-alarm fire.

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.

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Lubrizol

Lubrizol Opens CPVC Compounding Plant in Dahej, India

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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.