1. Can you please give us a brief description about Lubrizol and its activities in Asia, and the key countries of its operations.
“Lubrizol, headquarters in Wickliffe, Ohio, US, is one of the world’s premier specialty chemical companies. It provides innovative technologies to global transportation, industrial and consumer markets. Its technologies in additives, ingredients and compounds enhance the quality, performance and value of customers’ products.
“Founded in 1928. we operate facilities in 27 countries including production facilities in 19 countries and laboratories in 12 countries.
“The company consists of two business segments: Lubrizol Additives and Lubrizol Advanced Materials. 2007 revenues of $4.5 billion (up 11% vs. 2006). 6,900 employees worldwide.
“Lubrizol Additives includes additives businesses for engine, driveline, and industrial lubricants and fuel (diesel and gasoline) as well as services. Today, Lubrizol Additives is a leading global supplier of fuel and lubricant additives for transportation and industrial lubricants. We provide quality products and innovative solutions to lubricant and fuel marketers around the world.
“Our customers rely on Lubrizol technology to improve the performance of their lubricants and fuels, which work to improve the performance and lifespan of critical components such as engines, transmissions and gear drives for cars, trucks, buses, off-highway equipment and marine and industrial applications.
“Lubrizol Advanced Materials is a leading global producer of advanced specialty polymers, polymer-based additives, and chemical additives for a broad range of consumer and industrial applications.
“Our additives and ingredients are used in personal care products and pharmaceuticals; specialty materials, including plastics technology; and performance coatings in the form of specialty resins and additives.”
“The Lubrizol Corporation has facilities throughout Asia, including China, Japan, Korea, Australia, Singapore, Malaysia and India.
“Lubrizol Additives operates out of China, India, Australia, Japan, South Korea and Singapore. In India, we have a JV with Indian Oil Corporation, and in China we have two JV manufacturing facilities in Lanzhou and Tianjin with PetroChina.
“In Asia, Lubrizol Additives manufactures a variety of lubricant additives. Lubrizol Advanced Materials operates in both China and India, with a presence in Korea, Malaysia, Japan and Singapore.
“Some Lubrizol Advanced Materials highlights from the region:
o We are enhancing our presence in Shanghai, by building a new $40 million specialty chemicals facility in Songjiang. The facility should be completed by 4Q 2008. The new facility is adjacent to our existing Estane TPU plant.
o In 2007, Lubrizol Advanced Materials opened a new Conductive Polymers expansion in Seremban, Malaysia. The facility produces resin injection molding application products for the Estane Engineered Product line.
2. In March, Lubrizol announced the launch of a 10-year investment plan to meet the demand of its global customers. How significant is this plan in the company’s history?
“The Lubrizol Additives investment is significant. We will invest over US$1 billion in the next 10 years.
“Lubrizol Additives continually monitors market needs and develops business strategies to address these needs. The 10-year investment plan is an example of this business process. The investment is designed to ensure that Lubrizol Additives continues to be the most reliable supplier to the fuels and lubricants industry.
“The investment plays a significant part in the Lubrizol Additives long-term global manufacturing and supply chain strategy.”
3. The company said it will focus its 10-year plan on a US$200 million investment programme in China. What will Lubrizol be investing in China?
“The 10-year phased investment plan will include an investment in China. Specifically Lubrizol will build a grass roots manufacturing facility in the Tianjin Harbour Industrial Park.
“Development of the Tianjin site is part of The Lubrizol Corporation’s desire to meet the increasing demands of its additive customers.
“The investment in the Tianjin site is further confirmation that Lubrizol is committed to the region. The site will accommodate the relocation of the Tianjin Branch plant of the Lanzhou Lubrizol Lanlian Additive Co Ltd. Lubrizol’s engine oil additive joint venture, due to change of zoning. By sharing this site with the JV, Lubrizol believes both parties will achieve cost saving synergies and the JV will benefit from doing more business with Lubrizol.
“The site will be a wholly owned manufacturing facility, developed and phased in as market needs require. With this site, Lubrizol aims to respond to lubricant growth in Asia and better match its manufacturing footprint with global demand patterns.”