Dubai: Japan’s Kurita Water Industries and UAE-based AquaChemie DMCC are forming a joint venture company that will provide water treatment solutions to customers in the Gulf region, the firms said in a statement on Wednesday.
The new venture, called Kurita AquaChemie, will leverage both the companies’ “complementary strengths” for water and process treatment chemicals solutions for industries including refinery, petrochemicals, fertilizer and desalination. It will operate two new production plants in Dammam, Saudi Arabia, and in Jebel Ali, Duba.
The plants, which were commissioned in the first half of 2020, are expected to have a production capacity of about 230,000 metric tons per annum in the initial phase.
“AquaChemie has always strived to become a formidable player in the specialty chemicals space, with more than 25% year-on-year growth. Thus, when Kurita expressed interest in collaborating, we were immediately drawn by their globally trusted brand status,” said Subrato Saha, Director of AquaChemie DMCC.
Kurita will be the major shareholder in the new entity, the statement said.
The deal comes amid steady growth in the regional hydrocarbon industry, with new industrial process units being added. The overall specialty chemicals market in the GCC region is currently pegged at more than $350 million.
Kurita AquaChemie, which already has a base of over 25 customers in the region, will continue its investments to become the market leader in specialty chemicals in the next few years, the statement said.
“With this joint venture, a reality is born that will speedily bring the global innovations that Kurita develops, locally, to the GCC region,” said Lorenzo Carollo, CEO of Kurita Middle East.
