BioLab embarks on four-phase expansion
February 28 - 2015
BioLab Arabia Ltd “BLA” is a Saudi Chemical company based in Jubail Industrial City.
BLA produces Antiscalants chemicals used in Thermal and RO desalination plants, in cooperation with UK based, BWA Water Additives company.
BLA presently has a formulating capacity of 48,000 MT, and is currently expanding its plant with a first phase investment, which will cost US$25 million.
The heart of the expansion is a fully automated state of the art plant, with a 30 MT polymerization reactor, that will enable BLA to produce over 20,000 MT annually of polymers and copolymers.
BLA will use in its production, Glacial Acrylic Acid, which has been allocated to it by SAMCO, a joint venture of DOW, Tasnee and Sahara, also based in Jubail Industrial City.
The expansion plan will be over phases – the first phase will be completed by the end of 2015. The first phase also includes a building of 7500 Sq. Mt, to store Raw materials, and accommodate the filling line and finished drummed products.
To meet anticipated future growth in demand, all necessary structures and infrastructures and utilities required to install other reactors to double the capacity, will be completed in this first phase.
In the event more reactors are needed, the existing structure, and utilities are designed to be extended in order to again double the production capacity.
BLA decision to expand its facility was to produce its own requirement of Poly Carboxylic Acid “PCA”, and also to be a key supplier of Polymers and Copolymers to other industries in the GCC and MENA region.
Another reason for BLA decision to expand is that, In the last several years, there has been a tremendous growth in demand of various chemicals across the Middle East and North Africa region, and this growth offers reputable companies with brand name products numerous opportunities to sell their products solutions, however a key reason for their inability to do so are, price competitiveness, and presence in the market.
For some of these companies, the cost and time it will take to design and build a manufacturing facility, and setup an organization to sell and distribute their products, can be either not feasible, or a risky investment etc. This is where BLA can offer the opportunity to manufacture and market the products of such companies. BLA can do so at costs lower than exporting the same from overseas locations and can also extend to these companies the full advantages and benefits as if they were a local manufacturer.
These cost reduction is achieved through savings on shipping and freight, custom duties, logistics, labor, utilities and inventory holding costs, in addition to the possibility of getting tariff protection in some cases.
BLA focus will be to serve industries related to the Paint, Construction Material, Detergents and Oil field chemicals.
BLA can work as toll manufacturers, Manufacturers under License, distributors, or joint venture partners.
BLA is a wholly owned company by Al-Hejailan Group, www.hejailan.com , whose companies are in Manufacturing, consulting Engineering and Telecommunications.