Abu Dhabi Basic Industries form JV with leading technical textiles maker

15 Apr '08

3 min read

Paul Forman, Group Chief Executive of Low & Bonar, commented: “This new venture will give us a strong position in one of the largest potential markets for artificial grass and allow us to satisfy the significant growth in global demand. The Middle East is also one of the fastest growing areas for many of our other products such as specialist textiles used in civil engineering, where Low & Bonar already enjoys a world-leading position. The local presence with such a high calibre partner will reinforce our position in these markets and create new business opportunities. It will also enable us to develop closer relationships with some of the world's largest polymer producers.”

Jim White, Chief Operating Officer, ADBIC, commented: “We are very excited to be able to announce this investment with Low & Bonar which creates the first of several new businesses to be located in our recently announced Polymers Park development. Low & Bonar's choice to invest with us and in Abu Dhabi is a testament to the attractive offering that ADBIC has developed, and we expect to make further investments such as this in the future.”

The joint venture arrangements are subject to obtaining standard licenses required to conduct business in Abu Dhabi which are expected to be obtained by end of May 2008. The arrangements have customary provisions to resolve a deadlock between the partners. Low & Bonar would only be required to purchase ADBIC's stake in the event that the Group was in material or persistent breach of the joint venture arrangements or in certain circumstances relating to deadlock between the partners over key commercial issues. Low & Bonar was advised by Jasper Capital.

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