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Clariant Masterbatches Saudi Arabia, a joint venture (JV) between Clariant and Rowad National Plastic Company, has started construction of a new masterbatch production unit in Yanbu, Saudi Arabia.

Being built on a 38,000m² area, the new unit will be located in Yanbu Industrial Zone 2 and is scheduled to be commissioned by early next year.

The new facility, which will be the second manufacturing site of the company in Saudi Arabia, the other being situated in Riyadh, will manufacture white masterbatches.

Clariant CEO Hariolf Kottmann said: "The joint investment with Rowad is in line with our strategy to further strengthen our position in one of the important markets for plastic applications."

The city of Yanbu, situated on the Red Sea, around 350km north of Jeddah, Saudi Arabia, has 32 major hydrocarbon, petrochemical and mineral industries.

The location of the new plant is expected to help Clariant have smooth access to major raw materials, as well as also to sea and airport facilities for exporting the outputs of the plant to the markets.

Clariant business unit masterbatches head Marco Cenisio said: "Building this world-scale plant is a logical next step in our relationship with Rowad / Tasnee, our JV partner since August 2013.

"It will allow us to offer a broader product portfolio to customers in the Kingdom and in the Middle East / Africa region."

In 2013, Clariant entered into an agreement with Tasnee, the parent company of Rowad National Plastic Company, to form a masterbatches JV in Saudi Arabia.

With the JV, both the companies aim to develop new solutions for the plastics market and decided to construct a new plant for the production of white masterbatches.<

Rowad National Plastic general manager Ossamah Elshebany said: "We are pleased to celebrate the start of this new project.

"The additional capabilities will be important in growing and extending our market share in this region's downstream plastics industry."