Dabbagh to sign packaging JV with US firm
Delaware, June 15, 2010
National Scientific Company (NSC), a subsidiary of Saudi-based Dabbagh Group Holding, will establish a flexible products joint venture (JV) with US-based Greif, a leader in industrial packaging services.
Greif will manage the JV, 50 per cent of which will be owned by National Scientific and 50 per cent by Greif’s subsidiary.
The venture includes the flexible products business of Storsack, which was recently acquired by Greif, and Greif’s multiwall bag business. Storsack is among the world's largest producers of flexible intermediate bulk containers.
The joint venture will be completed after certain conditions are satisfied, including any necessary merger and regulatory approvals.
“This joint venture extends our core rigid industrial packaging business,” said Michael J Gasser, Greif chairman and chief executive officer.
“By joining forces with NSC and the Dabbagh Group, which has an established reputation as a trusted partner and pioneer of business within the Middle East and internationally, the JV will benefit from upstream advantages in the flexible industrial packaging business.”
“Also, the extension of Greif’s product portfolio to include flexible woven polypropylene packaging enables us to diversify deeper into markets such as the food and pharmaceutical industries,” Gasser added.
The JV expects to build a factory in Saudi Arabia, which will produce the woven polypropylene fabric used to manufacture the finished flexible containers. It will also produce flexible containers for regional customers.
Dr Majed Al Kassabi, chairman of Dabbagh Group, said: “Together, NSC and Greif are in a prime position to leverage attractive growth opportunities in the flexible packaging global market.”
The combination of Greif’s industrial packaging expertise, NSC’s proven entrepreneurship and Saudi Arabia’s competitive cost basis will provide customers with unrivalled value,” he added.
David Fischer, Greif president and chief operating officer, said: “Applying Greif’s global footprint and the Greif business system to this strategic JV will create additional value for our customers and shareholders.”
“By locating in Saudi Arabia, we will have many advantages including a progressive, business-friendly environment, advantaged logistics and abundant energy and raw material sources,” he concluded. – TradeArabia News Service