Lubrizol

Lubrizol Corporation

File:Lubrizol Logo.JPG
Company type	Subsidiary
Industry	Chemicals
Founded	1928
Headquarters	Wickliffe, Ohio
Key people	James L. Hambrick (CEO)
Products	Lubricant Additives; Specialty Chemicals
Revenue	$5.4 billion (2010)
Number of employees	6,900
Parent	Berkshire Hathaway
Website	http://www.lubrizol.com

The Lubrizol Corporation, a Berkshire Hathaway company, is an innovative specialty chemical company that produces and supplies technologies to improve the quality and performance of products in the global transportation, industrial and consumer markets. Headquartered in Wickliffe, Ohio, United States, Lubrizol holds a base of approximately 1,600 patents. Lubrizol operates production facilities in 19 countries, with sales and technical offices throughout the world, through the efforts of more than 6,900 individuals.

Lubrizol sells more than 12,000 products in over 100 countries. The company has two major business segments: Lubrizol Additives (LZA), a leading global supplier of fuel and lubricant additives for transportation and industrial applications; and Lubrizol Advanced Materials (LZAM), a leading global producer of advanced specialty polymers, polymer-based additives and chemical additives for a broad range of consumer and industrial applications. The Lubrizol Corporation is on Fortune magazine’s list of the 500 largest companies in the U.S. Based on 2010 revenues, Lubrizol moved up in the ranking order to 423 from 453 the previous year. On the basis of 2010 profitability metrics, total shareholder return (TSR) and earnings per share growth, Lubrizol was the top performing company among the 16 chemical companies that are on the Fortune 500.

This performance includes:

• #1 for profit as percentage of revenues
• #1 for profit as percentage of assets
• #3 for profit as percentage of shareholder equity
• #1 for total shareholder return from 2000-2010
• #2 for total shareholder return for 2010
• #3 for earnings per share annual growth from 2000-2010

Lubrizol also moved up in the ranking order in the Forbes magazine’s Global 2000 to 1,220 from 1,249 the previous year. The company ranked number 20 globally in their industry sector of specialty chemicals. Unlike the Fortune 500, which is a ranking solely on 2010 revenues, the Forbes Global 2000 ranking is based on a combination of revenues, net income, assets and market value.

History

Lubrizol originated on July 31, 1928 as The Graphite Oil Products Company in Ohio, United States. The company was founded by Kent Smith (first President), F. Alex Nason (first Vice-President), Frank A. Nason (first Treasurer), Kelvin Smith (President in 1951), Vincent Smith (first Secretary) and Tommy James (introduced Lubrizol’s first gasoline additive). On September 10, 1929, Lubrizol’s first product, a graphited lubricant and applicator marketed under the Lubri-Graph name, was launched. The young company changes its name to The Lubri-Graph Corporation.

'In 1931,' The Lubri-Graph Corporation moves to the Cleveland suburb of Wickliffe, Ohio. The location will become the company’s corporate headquarters and remains so today. By 1934, sales of Lubri-Zol special motor lubricant begin to soar; the company changes its name yet again, becoming The Lubri-Zol Corporation. (The hyphen is dropped in the 1940s.) Lubri-Zol also establishes Anglamol, Ltd.—later Lubrizol Great Britain, Ltd.—its first affiliate outside the United States and the beginning of its expansion as a global enterprise. Zinc dithiophosphate, Lubri-Zol’s pioneering oxidation and corrosion-inhibiting lubricant additive chemistry is introduced to the market.

In the 1940s, Lubrizol supports the war effort. Government authorities credit Lubrizol with producing more than half of all the engine oil additives and about 80% of all the gear lubricant additives required in Allied military operations. During this time period, Lubrizol researchers develop and introduce the first multipurpose extreme pressure additive for hypoid gears, along with the first fluid additives for automatic transmissions.

By the 1950s, Lubrizol becomes the first company to manufacture lubricant additives in France. In 1957, Lubrizol acquired International Rustproof Corporation, a producer of metal coatings. Lubrizol gained significant technical expertise in coatings technology—expertise that will increase over the years through numerous research and development initiatives.

On August 22, 1966, Lubrizol goes public, with stock offered on the New York Stock Exchange (NYSE: LZ). Growing concerns about air quality and increasing demand for improved engine performance, lead Lubrizol to re-energize its efforts in fuel additives. As a result, new, multifunctional dispersant gasoline additives are introduced to the marketplace.

Before the 1970s, no one thought about fuel economy. That changed with the gas crisis of 1974. Lines at gasoline stations stretched for blocks, and for the first time, Lubrizol turned its attention to additives to improve total vehicle economy. Lubrizol also introduced super high performance diesel oil additives and fuel saving multigrade gear oil additives.

The 1980s are a decade of technology firsts for Lubrizol. Innovative new additive chemistries are introduced in numerous product areas: passenger motor oils, gear oils, hydraulic fluids and viscosity modifiers. Lubrizol launched high water content fluid microemulsions for use in hydraulics.

In the 1990s, Lubrizol builds on its long-time presence in Asia Pacific by focusing its efforts in China. The company begins to supply lubricant additives in China through its joint venture facilities in Tianjin and Lanzhou. Lubrizol continues to expand its presence in the specialty chemical marketplace by making significant acquisitions in the areas of performance coatings and metalworking. In addition, in 1996, the company acquired CPI Engineering Services, Inc., a formulator of specialty synthetic lubricants used in air and refrigeration compressors.

On June 3, 2004, Lubrizol completed the acquisition of Noveon International, Inc.(formerly BF Goodrich Performance Materials), a specialty chemical company with a strong product portfolio in additives and ingredients for the personal care, performance coatings and engineered polymers markets. Noveon was a transformational acquisition that nearly doubled the size of the company and cemented Lubrizol’s position as a global specialty chemical company.

In 2009, Lubrizol overcame the difficulties of the global economic recession to become one of the few chemical companies to produce record earnings. The results from 2009 contributed to Lubrizol being named Company of the Year by Chemical & Engineering News in January 2010. Later in 2010, Lubrizol expanded its global footprint by breaking ground on a new additive manufacturing plant in Zhuhai Gaolan, China.

On March 14th, 2011, Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) and The Lubrizol Corporation (NYSE: LZ) announced a definitive agreement for Berkshire Hathaway to acquire 100% of outstanding Lubrizol shares for $135 per share in an all-cash transaction. The transaction, which was unanimously approved by the board of directors of each company, is valued at approximately $9.7 billion, making it one of the largest acquisitions in Berkshire Hathaway history. This transaction was approved by Lubrizol’s shareholders on June 9, 2011. The deal is expected to be finalized in the third quarter of 2011.

On September 16th, 2011, Berkshire Hathaway completed the acquisition of Lubrizol.

Lubrizol Additives Business Segment

The Lubrizol legacy was built upon the unprecedented pioneering of lubricant additives designed to improve the performance of fuels and lubricants for transportation and industry. Lubrizol’s Engine oil additives offer an expansive range of applications, from cars to construction equipment, motorcycles to marine vessels. They also have a full range of gasoline, diesel and biofuel additives that improve the performance of their customers’ fuels. As the only additive company with a product line for all on- and off-road driveline applications, Lubrizol provides advanced technologies for use in transmission fluids, gear oil and farm tractor fluids. In addition, they offer performance additive packages and component s for a wide range of indus trial lubrication applications.

Engine Oil Additives

Lubrizol engine oil additives are comprehensively designed to protect all types of engines in a variety of operating environments. The breadth of product offering ranges from basic technology suitable for use in older vehicles to the latest OEM approved lubricants. Backed by decades of experience in the science of lubrication additives, Lubrizol formulates market leading technologies to meet the needs of today’s engines: increased durability, reduced emissions and improved fuel economy.

Products and Applications

Heavy Duty Engine Oils: Lubricants used in “on-highway” and “off-highway” heavy-duty vehicle applications are classified as heavy duty engine oils. Additive systems for heavy duty engine oils often need to simultaneously address multiple performance attributes such as high heat/heavy soot, after-treatment devices, fuel economy and wear.

Passenger Car Engine Oils: Automotive lubricants used in car and light-duty truck engines are classified as passenger car engine oils, designed for vehicles that operate using gasoline, diesel and alternative fuels.

Marine Engine Oils: Marine diesel engines require unique oils that can address the combustion effects of heavy fuels. Lubrizol has chemistries to formulate oils that meet the requirements of OEMs as well as the demands of ship owners for either 2 or 4 stroke engines.

Other Engine Oils: In addition, Lubrizol formulates a range of products to meet a variety of other performance needs for smaller engines including: motorcycle and recreational vehicle engines, everyday power tools and stationary gas engines.

Fuel Additives and Refinery/Oilfield Products

In 1935, Pocahontas Oil Company introduced its Solvenized Blue Flash gasoline, which effectively cleaned carbon out of engines. Currently, Lubrizol offers a range of gasoline, diesel, biofuel and residual fuel additives that improve combustion, deposit control, flow and friction. The results are optimal power, performance, engine and equipment life, fuel economy and emissions.

Products and Applications

Gasoline additives: Technologies that offer the following benefits: improved fuel economy, reduced emissions, restored power, ethanol compatibility, engine cleanliness, driveability and reduced friction

Diesel fuel additives: Lubrizol diesel fuel additives are developed as solutions for improved fuel economy, emissions, power restoration, and compatibility with diesel fuel and biodiesel blends.

Biofuel additives: Improving fuel economy, restoring power, and reducing emissions with biofuels are all benefits of biofuels due to biofuel additives

Performance aftermarket products: Highly-engineered products to meet the challenging vehicle needs of performance aftermarket chemicals. Home heating fuel additives: Home heating oils formulated and optimized with Lubrizol additives reduce overall costs to consumers while providing additional benefits like improved stability and corrosion control.

Industrial fuel additives: Lubrizol products improve the value of residual fuels used in industrial applications. The fuel additive technology provides a range of benefits including improved fuel economy, less equipment downtime and easier maintenance.

Marine fuel additives: Lubrizol’s proprietary fuel additive technology for marine distillate and residual fuel oils offers improved engine performance, fuel economy and reduced lubricant consumption.

Refinery/Oilfield Products: Refineries, oilfield service companies, and refinery service companies count on Lubrizol technologies to perform – enabling them to market and employ advanced solutions for the most complex petroleum challenges.

Driveline Additives

Lubrizol is the only additive company with a product line that covers all on- and off-road driveline applications. They offer transmission fluid, gear oil and farm tractor fluid technologies to ensure equipment runs better and lasts longer.

Products and Applications

Lubrizol’s automatic transmission fluid additive technology is used in transmissions for passenger cars, commercial vehicles, off-road vehicles and non-transmission applications, such as power steering, small hydraulic pumps and farm equipment. Their technologies control sludge and varnish; prevent rust and corrosion; prevent fluid leakage; and protect gears, clutch plates, bushings and other metal parts.

Lubrizol’s gear oil additive technology has applications in passenger cars, trucks and heavy equipment. Lubrizol’s Anglamol® gear oil additive packages focus on friction reduction, heat removal and extreme pressure anti wear additives to prevent wear, pitting, spalling, scoring, scuffing and other types of distress that can result in equipment failure and downtime.

Lubrizol’s off-highway lubricant additives are used in fluids that lubricate transmissions, final drives, wet brakes, transmission clutches and hydraulic systems, typically from a common fluid reservoir on the vehicle. Off-highway lubricants are used in both on and off-highway commercial transmissions, high-pressure hydraulic systems, and construction, mining, agricultural and forestry equipment.

Industrial Additives

Lubrizol offers performance additive packages and components for a wide range of industrial lubrication applications. Their additive technology helps to protect hydraulic systems, industrial gears, bearings, turbines and metalworking tools and parts.

Products and Applications

Additives for greases: Lubrizol supplies additive packages and key components that can be formulated into customers’ finished greases.

Hydraulic Additives: Lubrizol’s hydraulic additives protect hydraulic equipment used in automotive plants, injection molding, agricultural equipment, textile plants, industrial robotics, steel mills, material handling, forestry and off-road vehicles.

Industrial gear oil additives: Lubrizol supplies advanced gear oil technology that helps to improve the efficiency and durability of industrial equipment. Industrial gear oils are used across the industrial market in a number of applications including wind turbines, paper, textile and steel mills, mining and forestry.

Lubrizol’s metalworking additives improve metalworking fluids used in the cutting, rolling, stamping and milling of metal.

Lubrizol Advanced Materials Business Segment

With an impressive history extending back to the 1870s (formerly BFGoodrich Performance Materials), Lubrizol Advanced Materials is a leading global producer of advanced specialty polymers, polymer-based additives and chemical additives. Used in everyday consumer and industrial applications, their additives and ingredients can be found in anything from personal care products to pharmaceuticals, plastics technology to performance coatings.

Estane® Engineered Polymers

Estane® TPUs bridge the gap between flexible rubber and rigid plastics. Unlike other thermoplastic elastomers, Estane TPU provides numerous physical property combinations, making it an extremely flexible material adaptable to numerous uses. Lubrizol also manufactures medical grade TPUs under the name of Thermedics™ Polymer Products, which are used in custom medical tubing.

Recognized brand names include: Estane® TPU, an elastomeric material that bridges the gap between flexible rubber and rigid plastics; Isoplast® ETPU, engineered thermoplastic polyurethane resin; Carbothane® TPU, a medical grade aliphatic, polycarbonate-based thermoplastic polyurethane; Stat-Rite® Static Control Systems, inherently static dissipative material with permanent ESD protective and prevention properties; Carbo-Rite™ Carbon Alloy Systems; a carbon filled conductive polymer that can be used for thermoforming or injection molding applications; Electro-Rite™ Conductive Coating Systems, inherently conductive polymer-coated sheets for effective electro static dissipative (ESD) protection on thermoformed trays

Products and Applications

This global business supplies specialty ingredients to the following markets:

Building and Construction

• House Wrap
• Roof Under Layer
• Automotive
• Technology

Electronics

• Processing Parts
• Electronic Packaging
• Electronic Components

Industrial

• Energy
• Construction
• Protective Equipment
• Food
• Agriculture
• Industrial Equipment

Medical

• Vascular Access
• Cardiac Assist
• Urology
• Neurovascular
• Gastroenterology
• Orthopedics
• Wound Care
• IV Therapy
• Orthodontics

Sports & Recreation

• Footwear
• Apparel
• Recreational Goods

Transportation

• Passenger Cars
• Commercial Vehicles
• Aerospace
• Marine
• Locomotive

TempRite® Engineered Polymers

Lubrizol is the world leader in chlorinated polyvinyl chloride (CPVC) resins and compounds. Their heat-resistant and low combustibility CPVC specialty plastics have applications in fire sprinkler systems, plumbing systems and industrial piping. Today, Lubrizol CPVC compounds are also found in products as diverse as exterior building materials (such as exterior cladding and fencing), industrial systems and even aircraft interiors.

Recognized brand names include: FlowGuard Gold®; Blazemaster®; Corzan® and Corzan® HP; FlowGuard Bendable® and TempRite® CPVC Material Solutions

Products and Applications

This global business supplies specialty ingredients used in the following applications:

Pipe and fittings for industrial piping systems and residential and commercial water distribution systems

Fire sprinkler systems for multi-family, commercial and residential applications

Specialty CPVC compounds for use in airplane interiors, window lineals, fencing, exterior cladding and decking

Noveon® Consumer Specialties

Noveon® Consumer Specialties offers a versatile line of ingredients that have a long history of successful use in personal care, home care, pharmaceutical and food formulations. Their specialty ingredients enhance the rheology, sensorial appeal and overall aesthetics of formulations.

Household, Institutional and Industrial (HI&I) ingredients add value to product formulations, economically, through increased performance and enhanced applications. Their materials improve overall product functionality and product delivery. Their high performance pharmaceutical ingredients are used in both prescription and over-the-counter products. The ingredients impart valuable functional benefits to finished drug products such as controlling drug release from tablets and improving flow properties in semisolid and liquid formulations. Lubrizol is also a global supplier of food ingredients that are suitable as natural texturizers for a variety of applications including ice cream, dairy, meat, and canned pet food.

Recognized brand names include: Carbopol® polymers, the industry standard in rheology modification, stabilization and suspension, naturally derived methyl glucoside derivatives such as Glucamate™ thickeners and emulsifiers, Glucam™ and Glucquat™ humectants, and Glucate™ emulsifiers, Fixate™ styling polymers, sensory modifiers like Schercemol™ and Hydramol™ esters, SilSense® specialty silicones and lanolin derivatives, Chembetaine™ and Sulfochem™ surfactants and performance blends, Diagum™ hydrocolloids and Novethix™ L-10 polymers for HI & I applications.

Products and Applications

This global business supplies specialty ingredients to the following markets:

Personal Care

• Hair care
• Hair styling
• Personal cleansing
• Skin care
• Sun care
• Color cosmetics

Household, Institutional and Industrial

• Hard Surface Cleaners
• Fabric Care
• Auto Cleaning Care
• Dish Care
• Thickened Deicing Systems
• Alkaline Batteries

Pharmaceuticals

• Tablets and capsules
• Gels, lotions, creams
• Oral liquids
• Bulk laxatives
• Bioadhesive formulations
• Toothpaste

Food

• Cheese and other dairy products
• Meat products
• Wet pet food

Performance Coatings

The performance coatings product line supplies a comprehensive portfolio of products designed to meet a broad range of challenges. This product line specializes in the resins and polymers that bind the system together as well as the specialty additives that enhance performance.

Recognized brand names include: Lanco™; Solsperse® hyperdispersants used in surface coatings to improve pigment dispersion and to reduce interparticulate attraction within that dispersion; Carbosperse™ used in a variety of industrial applications, including water treatment, paint and coatings, textiles, and agricultural formulations

Products and Applications

Paints, Coatings and Adhesives

• Wood
• OEM metal and plastics
• Masonry
• General industrial
• Pressure sensitive
• Maskants

Graphic Arts

• Functional coatings
• Resilient flooring
• Digital and ink jet
• Energy curable

Engineered Substrates (textiles, specialty papers and nonwovens)

• Digital print
• Filtration media
• Military fabrics
• Construction/fiberglass

Responsible Care® Management System

Lubrizol is a member of the American Chemistry Council (ACC) and, as a member, they subscribe to the principles of Responsible Care®. The ACC created the Responsible Care Management System (RCMS), which requires third-party certification of Health, Safety, Environmental and Security (HSES) management systems across all business activities.

Their ACC membership requires that they utilize third parties to certify a sample of four U.S. sites, as well as the corporate headquarters, to the RCMS or RC14001 technical specification every three years. They have far surpassed this requirement and between 2008 and 2010 have certified all 20 U.S. manufacturing facilities and corporate headquarters.

Product Safety

As customers put Lubrizol’s products into their final products and eventually on shelves, they need to be tested for safety. Likewise, government regulation and customers require that Lubrizol products be checked to make sure they are in compliance with global chemical control laws. They have a product compliance management system , Vision, in place to implement best practices. The Vision system gives us the ability to enhance their global regulatory com pliance and hazard communication services for customers, employees and the communities where they do business.

REACH, the Registration, Evaluation, Authorization and Restriction of Chemicals, is Europe’s newest compliance regulatio n. It requires manufacturers and importers to generate data for at least 30,000 substances in Euro pean commerce. To support REACH, Lubrizol has completed the pre-registration phase of all eligible substances and has assembled a cross-functiona l REACH Go vernance Council to manage all current and future aspects of this far-reaching legislation. Currently they are:

• Communicating with customers and suppliers in Lubrizol’s supply chain to ensure all needed end-uses are captured for registration purposes.
• Compiling hazard data and exposure information in order to complete registration dossiers for those substances to be registered by December 2010, working with other potential re gistrants wherever necessary.
• Developing a sophisticated rules-based IT system to provide a single location to store a ll information related to REACH compliance and to ensure all supply chain related functions in the Corporat ion factor REACH requirements into their daily decision making.
• Preparing to initiate act iv ity on those substances to be registered by June 2013

External links

• Lubrizol Corporation, website