North American compounding leader PolyOne Corp. has formed a joint venture to build a color concentrates plant in Jeddah, Saudi Arabia.
Avon Lake, Ohio-based PolyOne announced the move Oct. 17. The firm will own 51 percent of the venture, with the remainder owned by E.A. Juffali & Bros. Co. Ltd., an industrial conglomerate based in Jeddah.
The $14 million plant is expected to open in late 2012. Material made at the plant is expected to be sold within the Middle East. Juffali previously assisted PolyOne with sales in the region.
Juffali also is involved in joint ventures with U.S. plastics and chemicals firms Dow Chemical Co. of Midland, Mich., and DuPont Co. of Wilmington, Del. Juffali's work with Dow includes a polyurethanes feedstocks plant in Jeddah.
“Juffali brings local expertise and years of running successful businesses in the region, while PolyOne is providing the formulating technology and material science to market new, innovative solutions,” PolyOne Chairman, President and CEO Stephen Newlin said in a news release.
The announcement of the Saudi venture comes only two weeks after word of PolyOne's blockbuster deal to acquire global liquid color leader ColorMatrix Group for $486 million.