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Univar Inc., a global specialist in the distribution, sales and marketing of a wide range of specialty chemicals, is set to strengthen its grip in the Personal Care and Household and Industrial Cleaning markets in the Middle East, according to company reports.
The company has been operating in the region for 20 years in the oil and gas, personal care, coatings and food industries. It is now investing to further develop its commercial and product support activities, for the personal care and household and industrial cleaning business segments in the Middle East - where growth is said to be growing four-fold faster than the world average.
In an exclusive interview, Clean Middle East magazine talked to Univar’s recently appointed regional director for the Middle East and Africa; about the company’s long-term strategies in the region.
Strategies
After its recent acquisition of the Istanbul-based Eral-Protek - one of the leading players in the region’s mid-size chemical distribution sector – Univar, a nine billion dollar company, is set to strengthen its Middle East presence through acquisition of the related industry players, according to Powell.
“Acquisition is and has been part of our corporate strategy in all the developing markets where we operate. We are going to Saudi Arabia very soon and we are looking to acquire more companies there,” said Powell.
Asked about the war chest that Univar is coming with for these acquisitions, he said: “Our acquisition targets can be as big as we aim them to be. Last year alone, we made acquisitions totalling to about one billion US dollars.”
He said that talks are already ongoing with a couple of regional-based players for potential acquisitions, though “it’s not the right time to name them.” He however noted that Univar targets companies which “have a cutting edge product portfolio and as strong market presence.”
Univar is also placing green and environmentally sustainable product offerings high on its list of priorities. According to Matthew Howard, Univar’s supplier and product manager for Middle East and Africa, the company is also set to put more emphasis on developing (oxygenated) solvents in the Middle East.
“We are soon launching a couple of green raw materials in Europe, and we hope to test them in the Middle East market,” Howard said. “Some of our products are tailor-mades for this region, though they are not known so much. Few companies here have a broader understanding of the environment,” he added.
Challenges
According to Nick Powell, the chemical and ingredients industry is somewhat fragmented in the Middle East and Africa, with many smaller companies only serving certain market segments and small geographies. However, “Univar will be a perfect partner for those operating in the region, offering localised services while retaining the advantage of a global network, broad product portfolio as well as specialized product application laboratories.”
Univar is also set to offer the same quality services across the Middle East and Africa as it does in the rest of the world. In this regard, customers are already taking advantage of the company’s global strength and the expertise of its European Personal Care and Household and Industrial Cleaning teams including laboratory capabilities and technical support.
“But all in all, many of the customers are very excited by our size and we are already beginning to pick up good business with them.” To concretize this, Powell said that Univar is already working closely with a global manufacturer Ecolab, on a localized level. He is optimistic that many more are coming on board.
