Lubrizol has announced its decision to close the company's Latexo, Texas manufacturing facility which was acquired as part of its 2014 purchase of Weatherford International's Engineered Chemistry business. With approximately 40 employees, the Latexo facility currently manufactures chemical treatments for oil and gas production and produced waters, as well as additives for drilling, work-over and stimulation operations. The company anticipates exiting the Latexo facility in the first quarter of 2017.
The Latexo facility will continue to operate as it begins transferring production to other facilities within Lubrizol's extensive base of manufacturing plants. The company is confident that the transition will not impact product quality or customer service. Operations management has done extensive analysis and is confident that the remaining Oilfield Chemistry manufacturing asset base will be able to satisfy near and medium-term demand from our customers.
This decision is not a reflection of the efforts of the Latexo employees or their quality of work. Rather, the closure is a result of Lubrizol adjusting its manufacturing footprint in order to support improved growth and profitability. By taking this action the company will be able to bring costs in line with market needs and more efficiently invest in its facilities to better support ongoing and future oilfield chemical needs.
Employees affected by the plant closure will be offered severance packages. Everything possible will be done to ensure that these employees are treated with respect and compassion as this transition takes place.