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Sep 8th, 2008                                Print this article

Additives: Ciba, Astra form Saudi Arabian antioxidant JV

By Tony Deligio

Additive supplier Ciba has paired with Saudi Arabia-based compounder Astra Polymers, forming a joint venture that will offer antioxidant blends to the Persian Gulf region, including Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the U.A.E. The joint venture—Ciba-Astra Additives Company Ltd.— is also undertaking a feasibility study for the construction of another antioxidant plant in Saudi Arabia. Ciba will be the majority owner of the joint venture, which will target the growing resin production industry in the region with antioxidant blends. Ciba has an existing presence in Bahrain, part of its global network with 61 production sites and offices in 120 countries.

In the August 19 release of its first-half results, Ciba CEO Brendan Cummins said the company is in the midst of an initiative to reshape its portfolio and focus on plastics, coatings, and water, while a “number of options are being evaluated for the paper and publication inks businesses”, which Ciba said are underperforming. Cummins hinted at the Astra agreement, and said the company will make acquisitions in the coming weeks to strengthen its coatings effects unit. The Plastics Additives unit pushed sales up by 2% over the first six months of 2008, with Asian sales up 11% in the second quarter. Sales for Europe and the Americas were flat, and Ciba said the dual issues of raw material cost inflation and strength in the Swiss Franc had impacted profitability.

Astra, which was established in 1993 is a member of the Astra Industrial Group (AIG) conglomerate, specializings in color masterbatch and dust-free additives, as well as custom thermoplastic compounds, liquid based or paste colorants, and custom compounding for resin manufacturing and converting. The company announced last year that it would boost its existing 80,000 tonnes of capacity by 40,000 tonnes (link).

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