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MOSCOW (MRC) -- Colonial Chemical,
Inc. announced the start of construction of a new specialty chemicals
manufacturing plant in Dammam, Saudi Arabia, said the company.
The new
facility is named Colonial Chemical M.E. Arabia. This facility is a joint
venture with Sadeem Investments and Earth’s Reservoir for Oil and Gas, EROG.
Colonial Chemical, Inc. is providing the technology and operations knowledge for
the plant while Sadeem Investments and EROG are responsible for local
operational oversight and construction support.
The Board of Directors
overseeing the joint venture is headed by David Anderson, Colonial Chemical,
Inc. President, as the Chairman. Mohammed Abduldaim, EROG President, is the
Vice-Chairman, and other members include Dr. Peter Chetcuti, David Anderson Jr
and Douglas Wynn.
This operation will primarily provide a source of
locally manufactured specialty surfactants and other chemicals for oilfield,
industrial lubricants, water treatment, paper, paints, coatings, personal care,
household, and industrial cleaning applications. The new plant will offer
manufacturing technology capabilities for a variety of chemicals as well as toll
blending capability for finished formulations and custom chemical
manufacture.
The plant will allow customers in Saudi Arabia and the
region to achieve high local content levels required by localization initiatives
such as IKTVA, NUSANED and NIDLP.
Construction is underway on a nine-acre
plant that will include reaction vessels, distillation columns, toll blending
and mixing vessels, pilot scale equipment for development, warehousing and tank
farms. Additionally, construction will include state-of-the-art laboratories for
R&D and formulation development and administrative offices for supply chain
and customer service personnel. The plant will also house packaging and labeling
operations.
Manufacturing operations are expected to commence in Q4 2021.
Raw materials will be sourced locally to produce amine oxides, quaternary
ammonium compounds, hydroxypropyl sultaines, betaines, propionates, ether
carboxylates, imidazolines, phosphate esters, EPI-sulfonates, and
phosphates.
We remind that in
February 2020, PPG said it had completed its acquisition of Industria Chimica
Reggiana (ICR, Reggio Emilia, Italy), a maker of automotive refinish products.
Financial terms of the deal, including purchase price, were not disclosed. The
deal was announced on 8 January. ICR was founded in 1961 and employs about 180
people. ICR manufactures automotive refinish products, including putties,
primers, basecoats and clear coats. It also makes a range of coatings, enamels
and primers for light commercial vehicles and other light industrial coatings
applications. ICR employs about 180 people and sells its products in more than
70 countries in Europe, Africa, the Middle East, the US and Latin
America.
We also remind
that Russia's output of chemical products rose in November 2020 by 9.5% year
on year. At the same time, production of basic chemicals increased in the first
eleven months of 2020 by 6.6% year on year, according to Rosstat's data.
According to the Federal State Statistics Service of the Russian Federation,
polymers in primary form accounted for the greatest increase in the
January-November 2020 output. November production of polymers in primary form
rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of
polymers in primary form totalled 9,240,000 tonnes over the stated period, up by
17.1% year on year. |
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