Pentagon announce JV with Saudi Company - Capacity increase for ASA

Pentagon Chemical Specialties and Global Chemtech of Saudi Arabia have announced the formation of Saudi Specialty Chemicals (based in Riyadh). The new company will manufacture and market ASA (Alkenyl Succinic Anhydride) which is used used for the internal sizing of paper.

This new joint venture chemical company will only manufacture ASA which will be marketed and sold in the Asian market. This complements Pentagon's existing production of ASA in the UK and places the manufacturing of ASA at the heart of the raw material production (C16-C18 chain length hydrocarbon).

It is expected that construction of the new Saudi Specialty Chemicals facility will begin during 2008 with operations likely to begin by 2009. The investment is likely to reach USD$50million. The Joint Venture partners have been working with the British Offset Office and anticipate that the JV will be established under the Saudi British Economic Offset Programme.