Specialty chemicals producer Clariant and Tasnee & Sahara Olefins have signed an agreement to establish a masterbatches joint venture (JV) in Saudi Arabia.
Tasnee will acquire a 40% stake in Clariant's masterbatches operations in the country, already operating under the name Clariant Masterbatches within the framework of the agreement, through its 100% subsidiary Rowad National Plastic.
The JV, which will be operational following completion of customary merger control clearance procedures, will focus mainly on the Arabic peninsulas core market.
Together Clariant Masterbatches and Rowad National Plastic will be able to develop new solutions for the plastics market.
According to Clariant, the construction of a new plant for the production of white masterbatches has been decided, in addition to the existing operations.
Clariant CEO Hariolf Kottmann said the formation of the JV represents a first important step for the company in strengthening its presence in Saudi Arabia.
"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," Kottmann added.
Tasnee CEO Saleh Alnazha said, "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."
