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OxyChem

OxyChem (Occidental Chemical Corporation) is a leading manufacturer of industrial chemicals, acquired by Berkshire Hathaway in 2025 and integrated under the management of Lubrizol.

📝 Business Overview & Strategic Fit

  • Acquisition (2025): Announced in the 2025 Letter (written by CEO Greg Abel), OxyChem was acquired by Berkshire Hathaway, having previously been a wholly owned subsidiary of Occidental Petroleum (OXY). This acquisition represents a deepening of the relationship between Berkshire and Occidental, of which Berkshire owns over 28% of the common stock.
  • Operational Structure: OxyChem is structured as a standalone operating business within Berkshire. It was placed under the oversight of Lubrizol's CEO, Rebecca Liebert, who works in partnership with OxyChem's CEO, Wade Alleman, and his leadership team.
  • Products and Markets: OxyChem is a premier producer of chlorine and caustic soda, which serve essential markets led by construction and core industrial uses.
  • Economic Moat: The business is supported by an integrated asset base and access to low-cost raw materials. Management prioritizes efficient execution and capital discipline over volume growth. This translates into highly resilient, predictable cash flows for Berkshire's operating business segment.

🔗 Connections

📚 Historical Mentions & Citations (1)

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2025 LetterExcerpt Available
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In 2025, our approach resulted in Berkshire announcing the acquisition of two very different businesses: OxyChem and Bell Laboratories. OxyChem is a well-run industrial chemicals business we first encountered through our investment in Occidental. The chlorine and caustic soda it produces serve essential markets, led by construction and core industrial uses. Management prioritizes efficient execution over volume, supported by an integrated asset base and access to low-cost raw materials. For Berkshire, this translates into cash flows from a compelling addition to our operating businesses.
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