The Lubrizol Corporation, a Berkshire Hathaway company, headquartered in Wickliffe, Ohio, announced plans to construct a new manufacturing facility in Aurangabad, India. This move represents a significant expansion of the company’s presence in the region and demonstrates its commitment to serving the growing transportation and industrial fluid markets in India.
The specialty chemicals market represents 22% of India’s overall chemicals and petrochemicals market and is valued at $32 billion, per a recent KPMG report. The market is expected to grow at a compounded rate of 12% between 2020 and 2025.
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Key points of the announcement include:
1. Investment: The initial phase of the greenfield manufacturing facility involves a projected investment of approximately $200 million, marking Lubrizol’s largest investment in India to date.
2. Facility Size and Importance: The plant will be constructed on a 120-acre plot and is set to become Lubrizol’s second-largest manufacturing facility globally and its largest in India.
3. Phased Construction: The construction will progress in phases over several years, with room for future expansion.
4. Strategic Importance: This new facility aligns with Lubrizol’s strategy to enhance local capacity and capabilities for its Additives business, with potential to support other Lubrizol businesses and regions in the future.
5. History in India: Lubrizol has been investing in India for over five decades, demonstrating a long-term commitment to the region.
6. Recent Investments: In 2023, Lubrizol announced a $150 million investment in India, which included the construction of the world’s largest CPVC resin plant in Gujarat, capacity expansion at its Dahej site, and the opening of a grease lab in Navi Mumbai. In addition, this year the company opened its first Global Capability Center in Pune as a strategic hub to accelerate its growth in the region
7. Local Approach: The company emphasizes a “local-for-local” approach, focusing on India-based manufacturing, in-region innovation, and investment in local talent.
8. Market Opportunity: Lubrizol recognizes the significant growth potential in India’s transportation and industrial markets and aims to be a part of these industries’ future development.
9. Export Potential: The new site will not only cater to Indian demand but also enable export opportunities to surrounding countries and other Lubrizol sites.
10. Timeline: Manufacturing at the new site is expected to commence in 2028, coinciding with Lubrizol’s 100th anniversary.
This expansion reflects Lubrizol’s confidence in the Indian market and its commitment to long-term growth in the region.
Flavio Kliger, president of Lubrizol Additives, said, “Our mission is to double the size of our market in India in the next five years. India has the right talent, local demand and meets all the requirements that qualifies it to be a global hub for Lubrizol.”
