In the Kingdom of Saudi Arabia.Sweden - Saudi Joint Venture

A New Industrial Joint Venture between a Swedish and a Saudi Arabian Industrial Group has been established for the production of Cast Stretch Film, from a purpose built production facility in Saudi Arabia, with an initial investment of € 23 million.

Mr. Mats Larsson - Managing Director of Trioplast Stretch Film Division and Mr. Riyadh AL-Birdisi – Vice President of Mada Group for Industrial & Commercial Investment are delighted to announce that an equal partnership agreement was signed on the 17th of April 2006. The agreement is to build a Cast Stretch Film Production Facility in Jubail Industrial City on the East Coast of the Kingdom of Saudi Arabia between Trioplast Industrier AB and Mada Group for Industrial & Commercial Investment.

The core business of the new Joint Venture is the production of Cast Stretch Film for industrial applications, however both partners have agreed to extend this cooperation to further product areas and bring the new Joint Venture into a world wide leadership position.

The new Joint Venture production capacity is planned to reach 100 KMTA of Cast Stretch Film within five years. The plant will start with 25 KMTA due for production at the beginning of the 2nd Quarter Y2007 with an initial investment of about € 23 Million. The new Joint Venture is an export oriented business to the international market. The Joint Venture has already signed the contract with SCADO (a Saudi Arabian office)
as the Engineering Consulting firm for the industrial site development and with Battenfeld Gloucester for the first two production lines supply.

Over 60 thousand square meters of Land has been allocated to the project which will be a fully integrated production facility back to the oil fields. This will remove the transportation of polyethylene raw materials to the stretch film production facility completely as the Polyethylene Cracker will be on the same site as the Stretch Film Production.

Trioplast is a leading manufacturer of cast stretch fi lm, blown stretch film, agriculture films in addition to several other product areas from its production centers in Europe; while Mada Group for Industrial and Commercial Investment has several industrial plants that include the production of carpet backing, light carpets, artificial grass, BOPP among several other production facilities.