Trafigura is forming a joint venture with US privately held trading and logistics company Altis Group International to create a commodity petrochemical trading business with a focus on bulk liquid chemicals.

The jv will comprise two entities –the existing Altis Group based in Houston, Texas, USA, and Altis International (Singapore), which will have a branch office in Geneva, Switzerland.

“We believe that the time is right to start exploring the potential of this market,” said Tom Jay, former head of Trafigura’s deals desk for refined metals, bulk and concentrates. He added that the petrochemicals market is expected to grow significantly over the next few years. Jay and Chris Clarkson, Trafigura’s head of gasoline trading, will join the boards of the new venture.

Jeff McNear, president of the Altis Group International management team, said the jv will accelerate Altis’ growth and ability to expand its trading reach globally.

Earlier this month, Trafigura announced it was to become the owner of major mining group Nyrstar.  The Geneva-based trading house is also partially funding a chemicals plant to be built by Finnish nickel and cobalt mining company Terrafame. The plant at Sotkamo, Finland, will produce chemicals for use in electric vehicle batteries, with commercial production expected to start in early 2021.