Rohm & Haas signs JV to produce acrylic acid in Saudi Arabia

Latest moving in ongoing shift of chemicals production to the Middle East

By Dave Hannon -- Purchasing, 4/22/2008 1:41:00 PM

Specialty chemicals firm Rohm & Haas has signed a joint venture with a Saudi Arabian firm to begin production of acrylic acid in Saudi Arabia beginning in 2011.

According to a statement on the deal, Rohm & Haas will own 25% of the venture and use the materials in production of water-based acrylic products in various global markets. Its partner, Tasnee Sahara Olefins Co., will own 75% of the joint venture and have exclusive rights to sell the product in the Middle East.

The move is yet another sign that various links in the chemicals supply chain are moving production to the energy-rich Middle East. Howard Rappaport, global business director for plastics at Chemical Market Associates Inc. recently told Purchasing.com that over the next four to five years, 10 million metric tons of polyethylene capacity will start up in the Middle East.

And as recently reported by Purchasing.com, Air Liquide, said it plans to increase its investments in the Middle East to develop more production capacity closer to the region’s cheaper energy products. In January, Japanese chemical firm Sumitomo Chemical Co. said it was in talks with Saudi Aramco to expand its existing petrochemical joint venture in the Middle East also.

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