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Lubrizol Expands Presence in China

January 2, 2008
The Lubrizol Corporation is expanding its presence in China by investing approximately US$40 million (equivalent to approximately RMB 310 million) to build a facility in Songjiang, just -outside of Shanghai.


Cooley


New Facility and Expanded Presence

The Lubrizol Corporation is expanding its presence in China by investing approximately US$40 million (equivalent to approximately RMB 310 million) to build a facility in Songjiang, just -outside of Shanghai.

The new facility will include manufacturing, commercial and technical capabilities. It will be built on approximately 31,000 square meters of recently acquired land adjacent to the company’s existing Estane® TPU (thermoplastic polyurethane) plant in the Songjiang industrial zone. The company was to begin construction in the latter half of 2007 and to complete it in the forth quarter 2008.

Products initially slated for production at the site are primarily resins, polymers and specialty additives used in coatings for wood, plastic, metal and textiles. They also are used in printing inks, specialty papers and adhesives. Carboset®, Hycar®, Lanco™, Myflam®, and Solsperse® are among the branded performance coatings products planned for manufacture.
 


Importance of China Expansion

China is a fast-growing market and an important one for Lubrizol and its customers, and expanding Lubrizol’s presence in China is one of the company’s strategic priorities. “This investment helps us further expand our global reach and improve our operational efficiency in an important growth area. Local and regional customers seeking locally produced products, and global customers who are expanding into China, will be well served,” said Charles P. Cooley, Lubrizol's senior vice president, treasurer and chief financial officer.

This expansion allows Lubrizol to offer best-in-class technology and technical solutions to the expanding Chinese marketplace. Furthermore, it helps the company continue its progress toward meeting overall growth objectives.



Lubrizol's Background in China

Lubrizol’s involvement in China dates back to 1984, with the sale of lubricant additive technology to Sinopec. Then in 1994, the company formed Lubrizol China and opened a representative office in Beijing. In 1996, Lubrizol formed two joint ventures with Sinopec for blending plants in Tianjin and Lanzhou. The company opened Shanghai Lubrizol International Trading Co, Ltd. in 1998 to sell imported Lubrizol products to Chinese customers and to purchase Chinese raw materials for export. In 2000, the Lanzhou joint venture was expanded from just blending to a full-scale additive component manufacturing operation, and Lubrizol welcomed a new partner, PetroChina.

Lubrizol’s 2004 acquisition of Noveon International brought four commercial, technical and manufacturing organizations in the Shanghai area, along with offices and laboratories in Hong Kong. In 2005, the Estane® TPU plant was commissioned in Shanghai and was the first TPU plant in China built by a multinational producer. Most recently, Lubrizol established a laboratory in Shanghai to support its industrial additives business.
 


One-Company Initiative

Cooley describes the company’s planned one-company initiative - the goal of which will be to clearly state to investors, customers and the communities where it operates that Lubrizol is one company with a common vision: to become one of the largest and most profitable specialty chemical companies in the world. “Lubrizol will become the name associated with all of our operations. Two business segments will comprise our company. Lubrizol Advanced Materials (now known as Noveon Specialty Chemicals) will apply to our performance coatings, engineered polymers and consumer specialties products. Lubrizol Additives (now known as Lubricant Additives) will be the name we will use for our engine additives as well as our driveline and industrial additives businesses,” Cooley explains.
 
For more information, visit www.lubrizol.com.

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