Tag: Lubrizol

Lubrizol Investing $60 Million to Expand Particle Sciences, Vesta and Other Facilities in 2017

Post author By David Mazor
Post date June 7, 2017

(BRK.A), (BRK.B)

The Lubrizol Corporation’s LifeSciences business is continuing to invest in its key capabilities through a variety of planned expansions.

During this latest phase, a $60 million investment will focus on new product solutions, capacity expansion and additional cGMP manufacturing. These investments will strengthen the excipients, polymers, drug formulation and manufacturing, and medical device contract manufacturing capabilities at Lubrizol LifeSciences’ global facilities.

Commercial drug product manufacturing will be added at the company’s Particle Sciences facility in Bethlehem, PA. Leveraging the company’s knowledge in complex formulations and production, the facility will be adjacent to the existing development and clinical trial manufacturing site, offering customers a seamless flow from development through manufacturing. This new space, which is expected to be operational in the fourth quarter of 2017, will accommodate both sterile and non-sterile products, highly potent compounds, and organic solvent processing.

Additionally, LifeSciences is investing to expand its global facilities for excipients, polymers and contract manufacturing, with a focus on quality and efficiency. This capital investment will impact multiple sites to increase in-house engineering capacity across the LifeSciences portfolio of medical and pharmaceutical applications. This includes new investments in design, manufacturing and sterilization technologies for the production of interventional catheters and long-term implantable devices, an area of strategic importance to the medical device segment.

“We have significantly enhanced our capabilities through the combination of strong polymer technology, application know-how and world-class manufacturing,” states Deb Langer, vice president, Lubrizol Personal Home and Health Care.

“As healthcare companies look for total solution providers, we continue to invest in the right areas to provide valuable offerings where our customers are experiencing the most growth.”

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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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Warren Buffett Wishes For Five More Lubrizols

Post author By David Mazor
Post date May 1, 2017

(BRK.A), (BRK.B)

If there is any one of Berkshire Hathaway’s companies that Warren Buffett would love to find another of it would have to be Lubrizol Corporation.

Berkshire acquired the specialty chemical manufacturer in 2011 for $9.7 billion, and it has played an important role in Berkshire’s profits.

“Lubrizol is the second largest in terms of earnings so it’s a very important asset to Berkshire,” Buffett noted during a recent visit to Lubrizol’s headquarters in Wickliffe, Ohio. “Up until the acquisition of Precision Cast Parts [it was] the largest industrial operation we have.”

Lubrizol’s growth, which since being acquired by Berkshire has included the acquisition of Particle Science, the opening of a chlorinated polyvinyl chloride (CPVC) compounding plant in Dahej, India, and assuming the Indian government’s stake in Lubrizol India Pvt Ltd., and more.

“It’s a terrific business and it’s big, and only gets bigger,” Buffet said.

With Berkshire size matters, as small acquisitions don’t make much difference in the profits of a company the size that Berkshire has grown to. Over the past decade, Berkshire has added not only Lubrizol, but also BNSF Railway, Precision Castparts, battery-maker Duracell, and a hefty chunk of Kraft Heinz to its portfolio.

While individual Berkshire companies can grow through smaller acquisitions in the millions, tens of millions, or even hundreds of millions, those size acquisitions don’t make sense for Berkshire if they are stand-alone entities. Berkshire has to add companies with billions in market cap in order to make a difference.

Companies of Lubrizol’s size are in the range that Buffett looks for with his famed “elephant gun.”

“It’s a huge advantage to be large too in terms of moving the needle on $400 billion of market cap.” Buffett noted, referring to Berkshire’s overall size.

Buffett’s a willing buyer, but companies such as Lubrizol are not on every corner.

“I wish we had five more and they’re hard, they are very hard to find,” Buffet said. “They take decades and decades to build.”

Buffett’s reputation as a long term owner of companies who keeps key management in place is one the things that makes becoming a Berkshire company attractive. The other is no longer having to be a slave to quarterly earnings reports. Just ask the folks at BNSF Railway how much easier it is to allocate capital now that they have been freed of that burden.

“We want Berkshire to be a wonderful collection of businesses over time, because we’re not going to sell them. It isn’t like we are going to keep culling the herd.”

If you can find Buffett another Lubrizol he’s certainly ready to thank you.

“Find me another Lubrizol, I’ll send flowers to your wife on her birthday,” Buffett adds. And he means it.

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Tags Lubrizol, Warren Buffett

Lubrizol

Lubrizol Breaks Ground on Polyisobutylene Unit in Texas

Post author By David Mazor
Post date March 27, 2017

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Corporation has broken ground on the construction of a new polyisobutylene (PIB) unit at its Deer Park, Texas facility.

The facility is being developed as part of Lubrizol’s previously announced technology license agreement with Daelim Industrial.

Commenting on the new unit, Dan Sheets, president of Lubrizol Additives, states “With this significant investment, Lubrizol intends to meet future customer demands, as well as be fully prepared for anticipated performance upgrades in lubricants and fuels.”

The new unit is expected to be fully operational in the first half of 2019. It will provide Lubrizol with capacity for highly reactive polyisobutylene (HR PIB), a key raw material for next-generation dispersants and lubricants.

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Lubrizol

Lubrizol Buys Government’s 24% stake in India Joint Venture

Post author By David Mazor
Post date March 22, 2017

(BRK.A), (BRK.B)

The state-run Indian Oil Corp has agreed to sell a 24 percent stake in a joint venture to the US-based partner Lubrizol Corporation.

The transaction will enable Lubrizol to take over the government’s stake in Lubrizol India Pvt Ltd, according to a government statement. When completed, Lubrizol’s ownership in the company will reach 74%.

The move comes as the Indian government plans to divest its interest in public companies.

“The sale will enable IOC to have long term association with its joint venture partner and … Lubrizol India Pvt Ltd (LIPL) to have access to the latest global additive technologies developed by Lubrizol Corporation, USA,” the statement said.

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Lubrizol

Lubrizol Signs Agreement with Finolex Industries for CPVC Pipe in India

Post author By David Mazor
Post date February 16, 2017

(BRK.A), (BRK.B)

Berkshire Hathaway’s Lubrizol Corporation, inventors and the largest manufacturers of CPVC compound worldwide, and Finolex Industries Limited, the leading PVC pipes and fittings manufacturer in India,have announce the signing of, FlowGuard® Processor agreement for the manufacturing and sale of Finolex FlowGuard®Plus pipes and fittings in India.

In August, 2016, Lubrizol 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.

Under the new agreement, Finolex Industries will begin marketing in the last week of March 2017, and will cater to the building and construction industry.

“Lubrizol is dedicated to supplying the highest quality CPVC compounds to service the Indian hot & cold water plumbing markets,” explains Matthew Timmons, managing director, Lubrizol Advanced Materials India Pvt. Ltd. “Our partnership with Finolex Industries highlights the need and importance of quality CPVC pipes and fittings made from time-tested CPVC compounds provided by Lubrizol. Since January 2016, we have been manufacturing these world quality materials from a state-of-the art plant in Dahej, Gujarat. Our association with Finolex will further strengthen FlowGuard’s commitment to delivering reliability in India through Finolex’s wide spread network in the country.”

Timmons continues, “Since we introduced FlowGuard to the Indian market, we remained committed through our support of processors who continue to benefit from our more than 50 years of expertise in manufacturing and compounding. Additionally, with the government’s recent focus on housing for all, the infrastructure status given to real estate, loans offered at cheaper rates, introduction of the Real Estate Regulatory Act (RERA), GST & many other initiatives, the need for quality products to be used in the country is greater than ever.”

Lubrizol introduced the resilient CPVC material into India nearly two decades ago. Since then, India’s plumbers, engineers, builders and consultants have been reassured by the only material of its kind to be designed and approved to meet all global standards.

Prakash Chhabria, executive chairman of Finolex Industries Limited expressed his views on the special occasion, saying, “We are committed to strengthening the plumbing industry through our association with Lubrizol falls in line with the culture of Finolex Industries in providing quality products ‘Made in India’ for the Indian market. We are confident about Lubrizol’s global expertise in compounding and appreciate the work done by them in changing the plumbing industry from metal-based to CPVC–based piping. With FlowGuard’s raw material and support, our track record of providing superior products for Indian market gets strengthened. We look forward to a successful partnership.”
industry and we are honored they have chosen to take advantage of our industry-leading cold chain network, expanded fresh foods program and award-winning category management expertise. We are proud to partner with such a strong leader within our industry and look forward to building the foundation for a long lasting and mutually successful relationship.”

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Lubrizol

Lubrizol LifeSciences Announces New Compounding Capabilities

Post author By David Mazor
Post date February 13, 2017

(BRK.A), (BRK.B)

The Lubrizol Corporation’s LifeSciences (LLS) business has announced the addition of compounding capabilities for its Pellethane® and Isoplast® products for medical device customers.

The new offering enables LLS to provide color matching, radiopacity and custom compound development services and complements LifeSciences’ existing polymer portfolio, formulation and manufacturing capabilities to enable success for medical device customers.

As part of this new service, LLS provides custom color matching for brand recognition, safe identification and aesthetics in medical device applications. Since pigment requirements are ever changing, LifeSciences pays close attention to ensure that colorants meet applicable regulatory requirements.

Along with color matching, LLS also offers radiopaque materials for X-ray identification and proper device positioning; critical for patient safety and comfort. Pellethane and Isoplast compounds with barium sulfate and tungsten are now both available from LLS.

Pellethane thermoplastic polyurethane is available as aromatic polyethers or polyesters and are known for their flexibility and wide range of hardness. Pellethane TPUs are excellent for a variety of medical applications including tubing, catheters and other short-term uses.

Isoplast engineered thermoplastic polyurethanes are designed for rigid polymer requirements due to their high tensile strength and impact resistance. Isoplast medical polymers may be used to replace polycarbonate where stress cracking is an issue or coloring is difficult. Isoplast is ideal for applications needing an impact resistance-based polymer.

This new capability is made possible through a partnership with trusted custom medical plastics compounder, Compounding Solutions. Compounding Solutions is committed to manufacturing specialty plastics compounds and concentrates of the highest quality in order to satisfy requirements of the medical device industry.

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Uncategorized

Lubrizol Consolidates Skin Care Units Under Lipotec USA Banner

Post author By David Mazor
Post date February 6, 2017

(BRK.A), (BRK.B)

Berkshire Hathaway’s Specialty chemicals company Lubrizol is consolidating its Active Organics and Lipotec skin care units, and giving them a new name, Lipotec USA.

In 2011, Lubrizol acquired Active Organics, a manufacturer and supplier of naturally-derived specialty ingredients including botanical extracts and natural performance ingredients for the personal care industry.

The following year, Lubrizol acquired Lipotec SA, a leader in the development, manufacturing and sale of personal care ingredients based on three core technologies: peptide-based active cosmetic ingredients, delivery systems and biotechnology products.

Lipotec USA, Inc. will be located at the current address of Active Organics, Inc. in Lewisville, Texas.

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Lubrizol

Lubrizol Gets Tax Abatement Extension to Expand Wickliffe Headquarters

Post author By David Mazor
Post date February 2, 2017

(BRK.A), (BRK.B)

The Wickliffe, Ohio City Council has approved the extension of the 10-year, 50 percent tax abatement enterprise zone that was originally granted to Berkshire Hathaway’s Lubrizol Corporation in 2014. The extension means the tax abatement will now be available to Lubrizol until 2029.

The Council had given the mayor permission to extend the agreement at its December 16, 2016 meeting.

Lubrizol is planning to commence construction in 2018 on a 63,000-square-foot, single-story multi-purpose facility at its current Lakeland Boulevard headquarters. The extension will serve to connect two of its existing buildings.

Acquired by Berkshire Hathaway for $9 billion in cash in 2011, specialty-chemicals-maker Lubrizol owns and operates manufacturing facilities in 17 countries.

Tags Berkshire Hathaway, Lubrizol

Lubrizol

Lubrizol Has New President

Post author By David Mazor
Post date January 3, 2017

(BRK.A), (BRK.B)

Berkshire Hathaway’s wholly-owned specialty chemical company, Lubrizol Corp., has appointed a new CEO, effective Jan. 2, 2017.

Eric R. Schnur has taken on the role of chairman, president and CEO as part of a planned leadership transition announced in mid-2016. Schnur succeeds James L. Hambrick, who had been serving as chairman and CEO.

Schnur was named president and chief operating officer of Lubrizol on June 1, 2016, the company’s release stated. Prior to that, he had served as president of the company’s Advanced Materials business segment. In total, he has been with Lubrizol for more than 27 years, having joined it as an engineer in research and development. He has a bachelor of science degree in chemical engineering from Pennsylvania State University and an MBA from Case Western Reserve University.

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Lubrizol

Lubrizol Launches Lubricant Market Advocacy Website

Post author By David Mazor
Post date December 6, 2016

(BRK.A), (BRK.B)

The Lubrizol Corporation’s Lubrizol Additives business segment has launched a new, all-encompassing industry insight website, LubrizolAdditives360.com.

The website serves as a convenient single source for content that covers the entire lubricant market and reinforces Lubrizol’s role as a market leader in the industry.

The new site incorporates all the information and insights customers have come to rely on from Lubrizol’s previous industry insight websites, DriveLineNEWS.com, FluidLineFlash.com, GF-¬6.com, HDDEO.com, MCEO.com and PCEO.com. Content on the site is arranged in a format that aligns with the following specific business focus areas and the correlating opportunities in the marketplace:

• Passenger (including passenger car and motorcycle)
• Commercial (including on-road and off-road vehicles)

Key features of LubrizolAdditives360.com include:

• announcements on the latest engine oil specifications;
• information on advancements in passenger vehicle technology;
• reports on new trends in automotive gear manufacturing;
• intelligence on driveline and engine oil lubricants and fuels; and
• insight into innovative solutions for off-highway vehicles.

“Lubrizol Additives has always taken great pride in being a market leader and an advocate for the use of higher performing lubricants,” said Mike McCabe, director, Lubrizol Additives global marketing. “We are confident that this new industry insight website will provide valuable content for our customers and continue to drive the industry forward in a positive direction.”

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