Page 43 - Plastics News April 2017

BUSINESS NEWS

Wadia Group buys Belgium- Sabic and Sinopec to explore new
based Solvay's 25% stake in petrochemical projects in JV

National Peroxide abic and Sinopec have signed a strategic agreement

Sto study opportunities for joint projects in Saudi
he Wadia Group has agreed to purchase additional Arabia and China. Under the agreement, signed on March
T25.1 percent stake in National Peroxide Ltd (NPL) 16, 2017, the largest Saudi and Chinese petrochemical
from its JV partner Solvay SA, the Belgium-based companies are planning - for the first time to study a
manufacturer of specialty chemicals & polymers. With joint venture with Chinese investment in Saudi Arabia.
this deal, Wadia Group will consolidate its holding in “This is an opportunity for both parties to build on
NPL to over 70 percent. National Peroxide is the largest their historic
domestic producer of hydrogen peroxide, having an all cooperation.
India market presence and significant market share of The Chinese
close to 45 percent. In addition to hydrogen peroxide, ma rk e t h a s
NPL also manufactures sodium perborate and per always been a
acetic acid. Having its manufacturing unit located at key pillar of our
Kalyan, near Mumbai, NPL is the largest single location sales over the
hydrogen peroxide manufacturer in India and has a fully last 30 years.
integrated manufacturing facility, employing ultra- Today, we are
modern ‘auto oxidation’ technology. Solvay holds 25.1 e n t e rin g a
percent in National Peroxide, which it acquired indirectly turning point in our strategic relationship and building on
through the acquisition previous successes, such as studying the establishment
of Interox Coordination of a coal-to-chemicals petrochemicalcomplex with
more than 20 years ago. China’s Shenhua Ningxia Coal Industry Group. We hope
It also had a technology these successes continue through strategic projects
tie-up with NPL in the that contribute to the Saudi and Chinese leaders’ plans
past which has since and meet the aspiration of their peoples,” said Yousef
been fully absorbed Al-Benyan, vice chairman and CEO, Sabic
and discontinued. The agreement also seeks to explore opportunities
NPL wa s join t ly for further investments at the existing joint venture
promoted in 1956 by SinopecSabic Tianjin Petrochemical Company (SSTPC)
the flagship company that will contribute to industrial development in the
o f Wadia Gr o up two countries, allowing them to manufacture more
-Bombay Burma Trading high-quality products and open the way for expanding
Corporations Ltd (BBTCL) and Laporte Industries, integrated cooperation that supports long-term
UK. Subsequently, Solvay joined hands with Laporte development plans. The agreement studies joint venture
in 1970 and formed a joint venture company - petrochemical projects in China and Saudi Arabia, which
Interox Coordination, which it acquired in 1972 and target downstream key markets, such as automotive,
thus inherited 25.1 percent stake owned by Laporte electronics, lighting, and building and construction,
Industries in NPL. NPL, presently, under management packaging, and medical equipment. The agreement
control of the Wadia Group, is the largest domestic covers strategic projects that allow Sabic to continue
producer of hydrogen peroxide, with current capacity its historic participation in China’s growth and serve
of 95,000 MTPA, against the aggregate domestic global growth as a whole. The agreement is a boost to
manufacturing capacity of 2,19,500 MTPA and current Sabic's efforts to achieve its 2025 strategy in line with
demand of about 285,000 MTPA. Saudi 2030 goals.

43 April 2017 | Plastics News