Colonial Chemical, Inc., announced the construction of a specialty chemicals manufacturing plant, Colonial Chemical M.E. Arabia, located in Dammam, Saudi Arabia.
The facility build is a joint venture between Sadeem Investments and Earth’s Reservoir for Oil and Gas (EROG). Colonial Chemical, Inc., will provide the technology and operations knowledge for the plant while Sadeem Investments and EROG are responsible for local operational oversight and construction support.
The board of directors overseeing this joint venture is headed by David Anderson, Colonial Chemical, Inc., president, as the chairman. Mohammed Abduldaim, EROG president, is the vice-chairman, and other members include Peter Chetcuti, Ph.D., David Anderson, Jr., and Douglas Wynn.
Construction is under way on the nine-acre plant that will include reaction vessels, distillation columns, toll blending and mixing vessels, pilot scale equipment for development, warehousing and tank farms. The new plant will offer manufacturing technology capabilities for a variety of chemicals as well as toll blending capability for finished formulations and custom chemical manufacturing.
Additionally, construction will include laboratories for R&D and formulation development, and administrative offices for supply chain and customer service personnel. Furthermore, the plant will house packaging and labeling operations with manufacturing operations to commence in Q4 2021.
David Anderson, president, Colonial Chemical, Inc., said, “Colonial Chemical has long been a significant provider for oil field service companies as well as products for personal care, household and industrial cleaning applications in the United States. The new operation in Dammam will take advantage of local sourcing throughout the value chain and position Colonial Chemical M.E. Arabia as a preferential source of product and services for customers in that region.
"Along with shorter lead times, Colonial Chemical M.E. Arabia will also offer the benefit of toll blending and manufacturing, which is a highly desirable function in this market. We have built mutually beneficial relationships in the past few years with our local investors in this new operation and are all excited to see our plans move forward.”