Tasnee in deal to develop new plastic solutions

Updated 18 August 2013
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Tasnee in deal to develop new plastic solutions

Clariant, a world leader in specialty chemicals, and Tasnee, one of the largest industrial conglomerates in Saudi Arabia, have signed an agreement to establish a masterbatches joint venture in Saudi Arabia.
Within the framework of the agreement, through its 100 percent subsidiary Rowad National Plastic Company Ltd., Tasnee will acquire a 40 percent stake in Clariant’s masterbatches operations in the country, already operating under the name Clariant Masterbatches (Saudi Arabia) Ltd, described as a market leader and a pioneer in the region.
The joint venture will be operational following completion of customary merger control clearance procedures and will keep its main focus on the Arabic peninsula’s core market.
Clariant Masterbatches (Saudi Arabia) Ltd. began its masterbatches production in 1993.
Rowad National Plastic Company Ltd. is a regional leader in plastic conversion, and is a long-standing customer of Clariant Masterbatches.
Together, the companies will be able to develop new solutions for the plastics market.
In addition to the existing operations, the decision for the construction of a new plant for the production of white masterbatches has been taken.
“Our strategic partnership with Tasnee and the formation of the joint venture represent a first essential step for Clariant in strengthening its presence in one of the most important growth regions of the world,” said Hariolf Kottmann, CEO, Clariant.
“Clariant will contribute a high level of specialist know-how to the new company, whereas Tasnee has in-depth knowledge of the relevant regional markets, which will deliver major benefits to our clients. The link with Tasnee will also create additional value by facilitating access to feedstock. This partnership therefore represents another step in the implementation of our global growth strategy,” said Kottmann.
Hans Bohnen, head of business unit Masterbatches, added: “We are pleased to join forces with one of the leading industrial companies in the strategically important growth region on the Arabic peninsula and in Saudi Arabia in particular. The joint venture with Tasnee will open additional growth opportunities for Clariant and Tasnee in the Middle East region.”
“We are happy to join hands with Clariant, a world leader in the business. By this joint venture, Tasnee will enter into the important business of masterbatches, which will create further opportunities for serving the downstream plastic industry in the Middle East region,” said Saleh Alnazha, CEO of Tasnee.


Saudi’s Al Rajhi Bank Q1 net profit rises 21 pct on higher fees

Updated 26 min 18 sec ago
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Saudi’s Al Rajhi Bank Q1 net profit rises 21 pct on higher fees

  • The bank aims to boost its mortgage lending as more affordable housing comes on the market: CEO

DUBAI: Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets, reported double-digit growth in
first-quarter net profit on Tuesday, helped by higher special commission income and fees.
Saudi Arabia’s biggest Islamic lender said net profit rose 21 percent in the three months ended March 31 to 2.89 billion riyals ($771 million). It made net profit of 2.38 billion riyals in the same period
a year earlier.
The bank aims to boost its mortgage lending as more affordable housing comes on the market, Chief Executive Steve Bertamini told Reuters this month.
Al Rajhi, which has traditionally focused on consumer banking, has been cautiously expanding its exposure to the private sector, Bertamini said, amid expectations that government employment may not rise much in the future.
Saudi banks’ performance in 2019 should be boosted by a surge in liquidity and an anticipated recovery in lending against a backdrop of higher oil prices.
Saudi Arabia’s economy grew in the fourth quarter of last year at its fastest rate since early 2016 due to an expansion in the oil sector, while non-oil growth was sluggish, statistics agency data showed in March.
Al Rajhi attributed its performance to an increase in total operating income, due to special commission income and fees.
Operating income for the quarter rose by 12 percent year-on-year to 4.64 billion riyals, while profits from special commissions increased 15 percent over the same time frame to 3.94 billion riyals.
Loans and advances at the end of March stood at 236.42 billion riyals, up 3.6 percent year-on-year, while deposits rose 3.4 percent to 293.5 billion riyals over the same period.