UAE-based Petrochem Middle East plans to embark on a string of acquisitions of chemical manufacturing companies in Saudi Arabia, according to CEO Yogesh Mehta.
Speaking to Arabian Business in an exclusive interview, Mehta said the company “is going to acquire smaller companies that make specialty chemicals or chemicals that are produced in the region.”
“We’re looking at companies in the GCC to buy, or even India, and add to our portfolio and add and increase our range of chemicals,” he said.
“Future growth will come from acquiring smaller companies, and we’re doing that.”
Additionally, Mehta said that the company is currently working on opening a “huge” storage and chemical facility in the Saudi city of Dammam.
“This will give us better visibility in Saudi Arabia,” he said. “We will draw product from the producers and then distribute in Saudi Arabia and the GCC.”
In the future, he added, Petrochem is exploring opportunities to produce chemicals in both the UAE and Saudi Arabia.
Additionally, he said that Petrochem will further expand its storage capabilities in Egypt - where it already operates a storage and tank terminal – as well as entering into new partnerships with Egyptian companies.
“We would like to strengthen our position in the Egyptian and African markets in the coming years,” he said.
According to Mehta, Petrochem generated approximately $1.5 billion in turnover in 2018.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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