GPCA '11: Songwon to build Mideast additives plants with partners

13 December 2011 17:27  [Source: ICIS news]

DUBAI (ICIS)--South Korea-based Songwon Industrial revealed plans on Tuesday to build production plants for polymer additives in Saudi Arabia and Abu Dhabi with local partners Pan Gulf Holding and Polysys Industries.

Maurizio Butti, Songwon’s chief operating officer, said the plants will produce dust-free packages of polymer additives, known as ‘one pack’ additives.

The move follows Songwon’s acquisition of Additives Technology Greiz, also announced on Tuesday. Additives Technology Greiz produces one pack additives and has a 6,500 tonne/year manufacturing plant in Greiz, Germany.

Songwon, Saudi company Pan Gulf Holding and Abu Dhabi-based Polysys Industries have signed a memorandum of understanding to create a joint venture company which will have control of Additives Technology Greiz, as well as manufacturing and commercial joint ventures in the Middle East.

Songwon will own 60% of the new joint venture company, named Songwon Additive Technologies, while Pan Gulf Holdings and Polysys Industries will together own 40%, Butti said. He was speaking on the sidelines of the Sixth Annual GPCA (Gulf Petrochemicals & Chemicals Association) Forum in Dubai, which is being held in Dubai on 13-15 December

The Saudi and Abu Dhabi projects will also each have a 10,000 tonne/year capacity, Butti said. The Saudi project is scheduled to start up by the end of 2012 and is expected to be located in or near Jubail, he said. The Abu Dhabi project is expected to begin operations at the beginning of 2014 and could be located in Kizad (Khalifa Industrial Zone Abu Dhabi), he added.

The Middle Eastern projects will help meet growing demand for one pack polymer additives in the region. The market for one pack additives is estimated at 30,000-40,000 tonnes/year in the Middle East, mainly in the Gulf Cooperation Council (GCC) countries, Butti said.

Songwon Additive Technologies also intends to expand the Greiz production of one pack additives from 6,500 to approximately 10,000 tonnes/year, Butti said. The new production is expected to come onstream in May 2012.

By: Anna Jagger
+44 20 8652 3214

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