Saudi Aramco Acquires Novomer’s Polyol Business

Saudi Arabia: Saudi Aramco, a state-owned oil company of Saudi Arabia, has successfully completed the acquisition of the polyol business from Novomer, a US based company. The deal includes Novomer’s Converge^® product line and associated operations and technologies and is valued at up to USD100 million. Converge technology is used to convert waste carbon dioxide into cleaner high-value and high-demand end-products, which are cost competitive. Such high-performance end-products with carbon footprint improvements find various applications in the manufacturing of coatings, adhesives, sealants, elastomers, automobile seats and building insulation panels. Saudi Aramco would manufacture and market Converge^® Polyol and associated products through its subsidiary, Aramco Performance Materials LLC (APM).

TechSci Research depicts that acquisition of the Converge^® Polyol technology is expected to provide the development of new technological growth areas to Saudi Aramco and strengthen its integrated downstream expansion strategy. Moreover, the technological advancements would aid the achievement of Saudi Vision 2030 objectives of economic diversification and job creation.

According to a recent report published by TechSci Research, “GCC Construction Chemicals Market By Type, By End User, Competition Forecast & Opportunities, 2011 – 2021”, construction chemicals market in the GCC region is projected to grow at a CAGR of over 7% during 2016 to 2021. Demand for protective coatings as well as adhesives and sealants is also growing in the region. Other major construction chemicals consumed in the GCC countries include flooring chemicals, grouts, mortars, anti-corrosive agents, etc. In 2015, Saudi Arabia accounted for the largest share in GCC construction chemicals market, on account of large investments on infrastructure activities as well as lucrative schemes offered by the government to attract FDI in the construction sector.