Colonial Chemical to open Saudi manufacturing plant in Q3
Colonial Chemical is set to begin operations at its new specialty chemicals manufacturing plant in Dammam, Saudi Arabia by the end of September.
The nine-acre facility will primarily provide a source of locally manufactured specialty surfactants and other chemicals for personal care and other applications.
The new plant will also offer manufacturing technology capabilities for a variety of chemicals as well as toll blending capability for finished formulations and custom chemical manufacture.
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, due to start manufacturing operations in Q3 2022, will also house packaging and labeling operations.
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.
Colonial said 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.
The Dammam facility is designated as Colonial Chemical M.E. Arabia and is a joint venture with Sadeem Investments and Earth’s Reservoir for Oil and Gas, EROG.
Colonial 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 new operation in Dammam will take advantage of local sourcing throughout the value chain and position Colonial Chemical, M.E. Arabia as a preferential source of product and services for customers in that region,” said David Anderson, President, Colonial Chemical, Inc.
“Along with shorter lead times, Colonial Chemical M.E. Arabia will also offer the benefit of toll blending and manufacturing which is a highly desirable function in this market,” he added.