12.08.2015 • NewsDede WillamsBrenntagCarl Blomme

Brenntag Takes Majority of Middle East Distributor

Chemical distribution giant Brenntag has agreed to take an initial 51% stake in chemical distributor Trychem, based at Dubai in the United Arab Emirates (UAE). Tri Star Transport LLC/JRA Holding will have a 49% stake.

The Middle East distributor supplies solvents for the paint, ink and coatings industries, mainly to companies in the UAE, Saudi Arabia, Bahrain, Oman, Egypt and East Africa. Additionally, it offers mixing, blending, packaging and labeling capacities.

The Middle East chemical distribution market is still fragmented, and consolidation offers significant potential for global players such as Brenntag, said Carl Blomme, president of Brenntag Europe West & MEA.

“Our plans for the joint cooperation are to increase the existing commodity business and especially, to develop specialty chemicals with initial focus on selected markets and industrial applications, lubricants and coatings, Blomme added. “Following the acquisition of Lionheart Chemical Enterprises in February of this year, we now extend our services to customers and suppliers as a pan-Middle East and African chemical distributor.”

Karsten Beckmann, member of the management board of Brenntag group and head of EMEA operations, said the German distributor sees “sizeable growth potential in the partnership by combining Trychem’s local expertise with Brenntag’s international distribution knowledge, management know-how and sourcing potential.”

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