Arkema, the world’s second largest producer of organic peroxides, will set up Middle East region’s first organic peroxide plant at an investment of about $ 30 million. Arkema 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. 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.
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Organic peroxides are widely used as polymerisation 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.
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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. Arkema already operates a total of 11 organic peroxide plants spread over the three continents.
“Building on our existing extensive commercial presence with our customers in this high growth region, we are pleased today to be the first to invest in an organic peroxide plant in the Middle East. With this future plant, we will be able to offer genuine service to local petrochemical companies. This local production will release them from complex logistics operations requiring very low temperature transportation of supplies currently from Europe. Hence we will bring them the proximity and responsiveness they need to develop their business,” stated Pierre Chanoine, Vice President, Arkema.
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Organic peroxides are widely used as polymerisation 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.
ALSO READ: Arkema to invest Euro 200 million in two plants for 1234yf refrigerant gas
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. Arkema already operates a total of 11 organic peroxide plants spread over the three continents.
“Building on our existing extensive commercial presence with our customers in this high growth region, we are pleased today to be the first to invest in an organic peroxide plant in the Middle East. With this future plant, we will be able to offer genuine service to local petrochemical companies. This local production will release them from complex logistics operations requiring very low temperature transportation of supplies currently from Europe. Hence we will bring them the proximity and responsiveness they need to develop their business,” stated Pierre Chanoine, Vice President, Arkema.