Tasnee, a top industrial conglomerate in Saudi Arabia, and Swiss-based Clariant, a world leader in specialty chemicals, have signed an agreement to set up a masterbatches joint venture in the kingdom, a report said.

Tasnee will acquire a 40 per cent stake in Clariant’s masterbatches operations in the country through the former’s subsidiary Rowad National Plastic (Rowad), according to the report in Arab News.

Clariant is operating under the name Clariant Masterbatches (Saudi Arabia), which began manufacturing masterbatches twenty years ago.

Rowad, a leader in plastic conversion, and Clariant Masterbatches will develop new solutions for the plastics market, according to the report.

The parties concerned have also decided to build a new plant for the production of white masterbatches, the report added.

“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.

“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,” Hariolf Kottmann, chief executive of Clariant, was quoted as saying in the report.

“The link with Tasnee will also create additional value by facilitating access to feedstock,” he added.