W R Grace & Co and Al Dahra Agriculture have executed a joint venture agreement to build the first fluid catalytic cracking (FCC) catalysts manufacturing facility in the Middle East.
The state-of-the-art facility, which represents a capital investment of approximately $200 million, will serve refineries throughout the Middle East and potentially into South Asia. It will be built in the Kizad Industrial Zone, approximately 70 km from the city of Abu Dhabi.
A logistics hub will be completed in Q1 2014. Detailed engineering work for the full manufacturing facility is underway and construction is expected to begin in the fourth quarter of 2013. The facility will create approximately 200 new jobs and is scheduled to begin operations in the fourth quarter of 2015.
Officials from The Abu Dhabi Oil Refining Company (Takreer) and Oman Oil Refineries and Petroleum Industries Company (Orpic), spoke at the event, which was presented under the patronage of UAE Energy Minister Suhail Mohammed Al Mazrouei.
According to Grace chairman and CEO Fred Festa, regional demand for FCC catalysts is expected to grow substantially in the coming years. “This project, Grace’s most significant capital investment in several years, will help us extend our global leadership in catalysts,” he said. “We couldn’t be more pleased with our joint venture partner, Al Dahra Agriculture, on whom we can count for invaluable support here in the region.”
For Al Dahra Agriculture, the project will diversify and strengthen its fast-growing business while advancing the vertical integration of the petrochemical industry in the Emirate of Abu Dhabi. “Since we announced, slightly over a year ago, our intention to pursue this partnership with Grace, our initial assessment of the opportunity has been affirmed many times,” said Khadim Al Darei, Al Dahra’s vice chairman and managing director.
Nearly 40 per cent of transportation fuels worldwide are processed with Grace catalysts and Grace is the global leader for FCC catalysts and additives. It provides a broad, highly differentiated product portfolio and industry-leading technical service. Its research leadership and flexible manufacturing system support its value-added technology tailored to meet customers’ cur rent and future needs.
“Al Dahra Agriculture’s strong partnership with the UAE government in realising the strategic food security programme and ensuring long-term growth and sustainability for the emirate while in parallel growing commercial activities in global agribusiness brings unparalleled value to the new venture,” said a statement.
