Third Coast Chemicals Inc. has purchased Lyondell Chemical Co.s brake fluid business for an undisclosed amount. The agreement between Equistar Chemicals LP (a Lyondell company) and Third Coast went into effect July 1, and the two companies expect a two-month transition period.
The agreement announced Thursday includes a long-term contract between the two companies for supply of brake fluid raw materials from Equistars Bayport Underwood glycol ether production facility in Bayport, Texas.
It was a perfect fit for us, Third Coast Chemicals vice president Grif Carnes told Lube Report. We were already a producer of brake fluid in a small way, and it just puts us on a grander scale.
Pearland, Texas-based Third Coast Chemicals markets three brake fluid products, including one specifically for export use, produced by its affiliated company Third Coast Terminals. In addition, Third Coast Chemicals produces and markets inhibited glycols for industrial coolant applications in North America. The company also markets propylene glycol, dipropylene glycol and tripropylene glycol in North America.
The acquisition does not involve any Lyondell employees, Carnes said. Its just the product line were picking up, and it also gives us the capabilities for picking up a lot of the raw materials still coming out of their plants, for producing, he added.
Carnes explained that while Houston-based Lyondell has locations globally for many of its products, it was producing the brake fluids at U.S. locations.
This innovative agreement will allow us to focus on our glycol ether business, said Leandro Carboni, Lyondells business manager for solvents and C4 specialties.
In addition to the Bayport Underwood plant, the Beaumont PD Glycol Plant in Texas also produces glycols for Lyondells Equistar Chemicals business. PD Glycol is a joint venture between Equistar and DuPont. The Beaumont plants glycols are used to manufacture a variety of products, including antifreeze and hydraulic fluids.