Conversion facilities for adhesives

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Overview

This opportunity entails localizing the entire value chain for all major types of adhesives (e.g., natural polymer, polymer dispersion, hot melt, solvent based, reactive system, water based and pressure sensitive) to serve the KSA industry.

Currently, limited conversion of adhesives exists in the domestic market driving high imports of 49,000 MT (121 million USD) in 2016.

In addition, demand for adhesives in KSA is expected to rise significantly over the next couple of years driven mainly by KSA's fast growing construction market (~7% CAGR).

In addition, key building blocks for production of adhesives are available in KSA including: ethylene, propylene, butadiene, etc...

The increase in demand for adhesives, the high reliance on imports and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing local conversion facilities for major types of adhesives in Saudi Arabia.

Beyond the conversion facilities for adhesives, other opportunities exist across the value chain including:

  • Establishing manufacturing facilities for raw materials for polymer dispersion, hot melt, solvent based and water based adhesives (e.g., C5HCR, PVP, Polychloroprene and cellulose derivatives)
  • Providing distribution, inspection & testing as well as advanced maintenance offerings

Opportunity Details

Chemicals
Sector
To be determined by the investor
Location
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Investment size
Open to starting the project as soon as possible
Timeline

Investment Model

Model: Opportunity to consider different operating models
  • Pure private sector model
  • Joint venture with local player

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