Tasnee / Rowad takes 40% stake in Clariant MasterbatchesJoint Venture in Saudi Arabia to develop new plastic solutions
ARAB NEWS - Tuesday 13 August 2013
Clariant, a world leader in specialty chemicals, and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, have signed an agreement to establish a masterbatches joint venture in Saudi Arabia.
Within the framework of the agreement, through its 100 percent subsidiary Rowad National Plastic Company Ltd., Tasnee will acquire a 40 percent stake in Clariant’smasterbatches operations in the country, already operating under the name Clariant Masterbatches (Saudi Arabia) Ltd, described as a market leader and a pioneer in the region.
The joint venture will be operational following completion of customary merger control clearance procedures and will keep its main focus on the Arabic peninsula’s core market.
Clariant Masterbatches (Saudi Arabia) Ltd. began its masterbatches production in 1993.
Rowad National Plastic Company Ltd. is a regional leader in plastic conversion, and is a long-standing customer of Clariant Masterbatches. Together, the companies will be able to develop new solutions for the plastics market.
In addition to the existing operations, the decision for the construction of a new plant for the production of white masterbatches has been taken.
"Our strategic partnership with Tasnee and the formation of the joint venture represent a first essential step for Clariant in strengthening its presence in one of the most important growth regions of the world," said HariolfKottmann, CEO, Clariant.
"Clariant will contribute a high level of specialist know-how to the new company, whereas Tasnee has in-depth knowledge of the relevant regional markets, which will deliver major benefits to our clients. The link with Tasnee will also create additional value by facilitating access to feedstock. This partnership therefore represents another step in the implementation of our global growth strategy," said Kottmann.
Hans Bohnen, head of business unit Masterbatches, added: "We are pleased to join forces with one of the leading industrial companies in the strategically important growth region on the Arabic peninsula and in Saudi Arabia in particular. The joint venture with Tasnee will open additional growth opportunities for Clariant and Tasnee in the Middle East region."
"We are happy to join hands with Clariant, a world leader in the business. By this joint venture, Tasnee will enter into the important business of masterbatches, which will create further opportunities for serving the downstream plastic industry in the Middle East region," said Saleh Alnazha, CEO of Tasnee.