The Lubrizol Corporation announced June 17 that after an assessment of selected product lines and assets, it is transferring or exiting some of its Performance Coatings product lines and market applications where it does not see significant opportunity to grow the business profitably. In April of this year, Lubrizol Performance Coatings redefined its business model to focus on fewer market end uses where it believes it can deliver the most value to customers and realize sustainable and profitable growth. Actions taken at that time included the disposition of a facility in Lawrence, Mass., and a restructuring of its sales, marketing and research and development organization. These actions are a continuation of this restructuring.
During the third quarter of 2008, Lubrizol will begin transitioning selected acrylic emulsions from its Avon Lake, Ohio, site to other North American emulsion production facilities in Pedricktown, N.J., and Gastonia, N.C. Faced with ongoing cost increases in energy and raw material feed stocks, as well as an ongoing excess of emulsion production capacity in North America, the company has chosen to increase site utilization and volume throughput at its most efficient production sites. Some products will not be transferred and will be discontinued by the end of 2008. At the completion of this initiative, the Avon Lake acrylic emulsion production unit will cease production.
Based on continued market and cost pressures, the company will also cease production of styrene butadiene (SB) latex at its Gastonia plant. Lubrizol will purchase SB latex from outside suppliers to satisfy internal demand as necessary.
Eric Schnur, Lubrizol vice president of performance coatings, stated, "Although these actions will not eliminate ongoing raw material and energy cost pressures, we believe that they are a key component in controlling costs and insuring business sustainability. As we take these necessary steps to exit certain non-strategic products and realign our assets for improved efficiency, we are also significantly increasing our investment in our targeted markets, next-generation technologies and service capabilities to enhance our ability to deliver value to our customers."