Lubrizol, a US-based speciality chemicals manufacturer, has signed an MoU with the government of Maharashtra for a 120-acre land to set up a new manufacturing facility. The new plant, set to commence operations in 2028, will also mark the company’s 100th anniversary.
Over the next few years, the company will invest around $200 million (Rs 1,674 crore) in a phased manner towards the upcoming factory in Aurangabad. The company will initially focus on regional demands for the transportation and industrial markets and other growing segments.
The investment will primarily be from Lubrizol itself, however, if demand arises, the company will look at external funding. The new factory will focus on the mobility industry, with additive packages that go into engine oils, lubricants, driveline, lubricants and industrial lubricants.
The investments will play a key role in India because of the diverse population and Flavio Kliger, the Senior Vice President of Lubrizol Additives, says, “India is the most exciting growth in the world because of its population dynamics and the cost of production is competitive.”
Also, since Lubrizol has had a presence in India for almost 50 years, investing in the country seems right for Lubrizol to set up its largest plant in India. “Lubrizol has made meaningful investments in India for more than five decades,” says Kliger.
“Lubrizol’s additives are meant for passenger cars, commercial vehicles or water vehicles, motorcycles and tractors. So, those go into the formulation of lubricants that provide higher efficiency,” adds Kliger.
In 2023, Lubrizol announced an investment of $150 million to support the construction of the world’s largest CPVC resin plant in Vilayat, Gujarat, the doubling of capacity at Lubrizol’s site in Dahej, Gujarat, the opening of a grease lab in Navi Mumbai and additional in-country job growth and innovation.
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 and enable closer collaboration for customers and employees.
