Leading plastic additives supplier Adeka (Tokyo) intends to start manufacturing commercial volumes of one pack granule additives in Abu Dhabi next year. Within five years, the company targets a 25% share of the Middle Eastern market, where production of polyolefins continues to boom.
Adeka's market entry will proceed via the acquisition of a 49% stake in Al Ghurair Additives, whose name will then revert to Adeka Al Ghurair Additives.
With an estimated market scale of approximately $120 million, the polymer additives market in the Middle East is a key market expected to grow some 10% annually moving forward. In particular, the consumption of one pack granule additives incorporating light stabilizers, antioxidants and other additives is expected to rise from 20,000 tons in 2008 to 40,000 tons in 2014.
Moreover, in addition to one pack granule additives and general additives, the market for the highly functional polymer additives in which Adeka excels is likely to grow and evolve in the future. Consequently, Adeka expects to expand the production capacity and product lineup of the joint venture as sales email@example.com