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In its first plant enterprise exterior of Tennessee, Colonial Chemical Inc. is partnering with a Center East oil and funding agency to construct a specialty chemical compounds manufacturing plant in Dammam, Saudi Arabia.
The brand new facility is designated as Colonial Chemical M.E. Arabia and is a three way partnership with Sadeem Investments and Earth’s Reservoir for Oil and Fuel. The $10 million facility, which will probably be operated by Colonial Chemical, will present a domestically made supply of specialty surfactants and different chemical compounds for oil drilling and industrial operations in Saudi Arabia.
“The brand new operation in Dammam will make the most of native sourcing all through the worth chain and place Colonial Chemical M.E. Arabia as a preferential supply of product and companies for patrons in that area,” David Anderson, the founder and chairman of Colonial Chemical Inc., stated in an announcement of the brand new Saudi Arabian plant. “Together with shorter lead instances, Colonial Chemical M.E. Arabia may even provide the advantage of toll mixing and manufacturing, which is a extremely fascinating perform on this market. We now have constructed mutually helpful relationships prior to now few years with our native traders on this new operation and are all excited to see our plans transfer ahead.”
The Saudi authorities has set a aim of getting at the very least 70% of its merchandise from home manufacturing in Saudi Arabia by 2030. The brand new 9-acre plant will embody response vessels, distillation columns, toll mixing and mixing vessels, pilot scale tools for growth, warehousing and tank farms. The brand new plant will provide manufacturing know-how capabilities for a wide range of chemical compounds in addition to toll mixing functionality for completed formulations and customized chemical manufacture.
Moreover, development will embody state-of-the-art laboratories for analysis and growth and formulation growth in addition to administrative workplaces for provide chain and customer support personnel. The plant may even home packaging and labeling operations.
Manufacturing operations are anticipated to begin by this fall, Anderson stated. Uncooked supplies will probably be sourced domestically to supply amine oxides, quaternary ammonium compounds, hydroxypropyl sultaines, betaines, propionates, ether carboxylates, imidazolines, phosphate esters, EPI-sulfonates and phosphates.
“That is our first plant exterior of the USA, however I’d envision different vegetation in different nations,” Anderson stated in a phone interview. “We’re at a measurement now that we are able to do it, and we might look to do one other plant, in all probability in Europe, in some unspecified time in the future sooner or later.”
Anderson began Colonial Chemical in Dalton in 1987 after which moved to Chattanooga as a purchase and promote operation earlier than relocating to New Hope in 1996. The operation has grown in Marion County from an preliminary six workers 25 years in the past to 180 employees right now.
The privately-held Colonial Chemical was acknowledged this 12 months by Edge journal as one of many Greatest Locations to Work within the Chattanooga space.
The corporate provides merchandise to the private care, family, oil & fuel and industrial lubrication market. Colonial Chemical serves North America and over 50 nations across the globe.
Contact Dave Flessner at dflessner@timesfreepress.com or at 423-757-6340 or on Twitter at @dflessner1
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