GSI’s facilities in Jubail

The region’s pioneering producer and supplier of additives to the plastic industry will commission this year its third blending line and make preparations for a fourth
Gulf Stabilizers Industries (GSI), which manufactures antioxidants and has a blending facility  to custom produce additives in easy-to-use pellets, said the blending capacity would rise to 10,000 tonnes annually in the third quarter of 2008 from  the current level of 6,000 tonnes.

A company spokesman said the line was earlier scheduled for commissioning in late 2007 but several revisions had to be made causing the rescheduling.
The third line project includes the construction of a new warehouse and facilities to serve the line. GSI’s production facilities are located in Jubail Industrial City.
The blending facilities utilise GSI’s trademarked Anox NDB (no dust blend) technology which enables customers to simplify their process of feeding additives and provides cost benefits.
GSI’s NDB plants have the technological capability to blend up to seven types of additives. The technology enables blending of diverse, hard-to-handle antioxidants, UV stabilisers and other suitable additives into a single dust-free easy-dosing pellet offering superior feeding accuracy, safety, cleanliness and quality control to multiple-powder dosing.
GSI is a joint venture between Zamil Group Holding, which owns 51 per cent of the shares, and Chemtura Corporation, which holds the remainder.
Chemtura is providing support in manufacturing, R&D, technical services and quality assurance through its various facilities worldwide. An additional investment is being made for NDB4, which will add another 4,000 tonnes annually to capacity. When this fourth line is completed in 2009, capacity will have risen to 14,000 tonnes.
The expansion is being driven by the exciting growth of our customers’ polyolefin production capacities in the Middle East region,” said Dr Sean O’Connor, GSI chairman, at the time NDB3 was announced.
“Having local capacity which anticipates our customers’ needs within the region allows us to provide excellent service and support for high-quality blends,” he added.
GSI vice chairman Fahad Al Zamil said the Middle East and surrounding region was experiencing rapid growth in polyolefin and other plastic manufacturing industries that utilised abundant natural oil and gas resources. GSI general manager Ahmed Mahmood Khan remarked: “GSI understands the goals, needs and customs of local industries and commits to meet them through local partnerships with international standards of quality.”
GSI is the only manufacturer of antioxidants in the Middle East and North Africa region with production focused on three primary and secondary antioxidants in powder form, namely Anox 20, Alkanox 240 and Anox PP 18.
Sales in 2007 were $37.1 million with antioxidants contributing $4.5 million, pre-blends $31 million and UV stabilisers and other additives $1.6 million. As much as 47 per cent of the sales value came from exports.
The company had reported sales of $35.2 million in 2006. It has forecasted a sales turnover of $40.1 million for 2008.
Discussing the additives industry, the spokesman said: “The obvious challenge it must come to terms with is the continued rise in the price of oil. With the cost of major raw materials firmed up with the price of oil, the focus will be on improving operational efficiencies.  However, this alone will not keep the prices of the finished products from increasing in order to cover the cost of raw materials and production. 
 “GSI’s reliability as a trusted local manufacturer of polymer additives in the region will become its coping mechanism and competitive leverage.”