W. R. Grace & Co. has signed a memorandum of
understanding to form a joint venture with Al Dahra
Agricultural Co. to build and operate a fluid catalytic
cracking (FCC) catalysts and additives plant in the Middle
The joint venture is subject to the execution of definitive
agreements and receipt of regulatory approvals.
The production plant would be located in Abu Dhabi, United
Arab Emirates, and used to supply oil refiners in the high
growth Middle East and South Asia markets.
There are expected to be 16 FCC units built in these regions in
the next five years, which would increase the catalyst
opportunity in the region by approximately $150 million.
The plant in Abu Dhabi would be the first FCC catalysts and
additives plant in the region, and is an important step for
Grace to reinforce the reliable and timely distribution of FCC
catalysts and additives to refineries in the region.
Grace, the worlds largest manufacturer of FCC
catalysts and additives, said it expects that the growth in the
region will be more than adequate for the capacity of the new
plant by the time it is anticipated to come on stream in late
This joint venture will leverage our strengths in the
FCC segment with the strong local relationships of Al Dahra and
their expertise in logistics and infrastructure support,
said Shawn A. Abrams, president of Grace Catalysts
Technologies. This investment will allow us to capture
growth in the Middle East and Asia and optimize our capacity in
Al Dahra is very pleased to partner with a leading technology supplier to the oil
industry, bringing know how and expertise to the
Emirates, said H.E. Khadim Al Darei, vice chairman and MD
at Al Dahra.
This joint venture represents another milestone in the
companys strategy to diversify its service offering and
reinforces the commitment of its leadership to ensure
sustainable national economic growth.