MOSCOW (MRC) -- Arkema, the world’s second largest producer of organic peroxides, and Saudi investment company Watan Industrial Investment have signed an agreement for the construction of an organic peroxide production site on the Al Jubail platform, Saudi Arabia, according to the company's press release.
The facility, requiring an investment of about USD 30 million, will be the very first organic peroxide plant in the Middle East region.
This investment will enable Arkema to bolster its leading position in organic peroxides, and illustrates its strategy to expand its High Performance Materials segment and strengthen its presence in fast-growing countries, where the Group aims to achieve 30% of its sales by 2016.
Organic peroxides are widely used as polymerization initiators in the thermoplastic industry. This new world-scale plant will be able to supply all petrochemical players in the Middle East and support their strong growth anticipated by 2020 by offering them a secure and flexible local supply service. Production will focus in particular on organic peroxides stored at low temperature, with safe and secure logistics services provided by a local player.
As MRC informed previously, Arkema, a France-based chemical manufacturer, has recently declared a project to divest its tin stabilizer business to PMC Group, a New Jersey-based performance plastics and chemicals manufacturer. This planned divestment of organometallic products includes Fascat catalysts, Thermolite tin stabilizers and fine chemicals. Therefore, Arkema strives to refocus its activities on expanding core specialty businesses. On the basis of tin chemistry, Thermolite heat stabilizers are specifically utilized in the manufacturing pf PVC, which is mainly used in the construction sector, whereas Fascat catalysts are utilized in automotive specialties as well as in other applications.
The Arkema - Watan Industrial Investment joint venture will be majority held by Arkema, with the latter overseeing the operational management and sales of the site. The plant’s startup is scheduled in the first months of 2015.
Watan Industrial Investment is a private Saudi company established in 2007 in the Kingdom of Saudi Arabia. Watan core business is investing in industrial projects which cover different sectors benefitting from the continuous growth of the Saudi economy specially in chemicals and petrochemicals. Watan is presently active in the field of industrial gases in venture with a large US producer and supplies the largest Saudi petrochemical companies.
Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.