Colonial Chemical, Inc. has announced the groundbreaking of a new specialty chemicals manufacturing plant in Dammam, Saudi Arabia, designated as Colonial Chemical M.E. Arabia. The expansion was made possible through a joint venture with Sadeem Investments and Earth’s Reservoir for Oil and Gas (EROG). The operation will primarily provide a source of locally manufactured specialty surfactants and other chemicals for oilfield, industrial lubricants, water treatment, paper, paints, coatings, personal care, and household and industrial cleaning applications.
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Construction on the nine-acre plant will include reaction vessels, distillation columns, toll blending and mixing vessels, pilot scale equipment for development, warehousing and tank farms. Additionally, construction will include state-of-the-art laboratories for R&D and formulation development and administrative offices for supply chain and customer service personnel.
Manufacturing operations in the plant are expected to commence in Q3 2022. Raw materials will be sourced locally to produce amine oxides, quaternary ammonium compounds, hydroxypropyl sultaines, betaines, propionates, ether carboxylates, imidazolines, phosphate esters, EPI-sulfonates and phosphates.
The manufacturing plant will primarily provide a source of specialty surfactants and other chemicals for oilfield, industrial lubricants, water treatment, paper, paints, coatings, personal care, and household and industrial cleaning.
Colonial Chemical, Inc. is providing the technology and operations knowledge for the plant while Sadeem Investments and EROG are responsible for local operational oversight and construction support. The plant will offer manufacturing technology capabilities for a variety of chemicals and toll blending capability for finished formulations and custom chemical manufacture.
David Anderson, president, Colonial Chemical, Inc., said, “Colonial Chemical has long been a significant provider for oilfield 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 products 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.”
