Dubai-based MBT Middle East, which is active in the construction chemicals sector, expects to play an enhanced role following the consolidation of resources between its parent SKW Trostburg AG and Degussa-Huls AG, both of whom are members of the specialty chemical division of E.on.AG.
As the world's largest speciality chemical manufacturer, the new Degussa achieved sales of almost $15 billion last year, excluding trading in precious metals. The company is now focusing on six core speciality chemical divisions: health and nutrition; construction chemicals; fine and industrial chemicals; speciality polymers; performance chemicals and coatings and advanced fillers.
"The construction chemical division leads with sales of $1.5 billion in 2000 and this new, combined strength will make Degussa a formidable force in the construction sector," said a statement.
"The company is expected to divest non-core businesses, realising $2.6 billion while further acquisitions will reinforce core business," said the statement.
Commenting on the effect the merger will have, MBT Middle East director and general manager Ivan Chadwick said: "The Degussa Group is structured to decentralise activities and decision making as much as possible. After all, there is tremendous variety in regional markets and it is important to react quickly to satisfy specific local demand."
Added Chadwick: "In the Middle East, MBT Middle East LLC in Dubai will remain the regional centre for the construction chemical business and in a further development is providing services to other Degussa divisions to enhance activities in the region."
He said MBT and other well-established brand names would continue without change and market activities would not be affected by the consolidation of the construction chemicals division within Degussa. "We are excited about the increased resources available to us," said Chadwick. "This means that MBT can offer even greater solutions to the region's construction industry, supported by unprecedented R & D both centrally and locally."
Degussa plans further capital expenditure to enhance the construction chemicals division's market leader position and aims to achieve sustained growth above the market average, according to a statement on behalf of Degussa.
It said the group was expected to invest $1.15 billion over the next three years in capital expenditure and would complete construction of an international research and competence centre for construction chemicals in Trostberg, Germany.
MBT has been providing solutions for the problems of industrial construction since the formation of Master Builders almost 100 years ago. Since then, the company has expanded in size and broadened its expertise alongside the construction industry.
Based at the Dubai Investment Park, MBT Middle East acts as the regional headquarters for the greater Middle Eastern, East African and South Asian markets. The company has manufacturing plants for liquid, powder and resin production for epoxy, polyurethane and polysiphide-based systems.
An R & D centre, training facility and regional customer service department provide production, technical and marketing supporters to contractors, specifiers, distributors and sister companies in India, Jordan, Saudi Arabia, Egypt and Iran.
