Under the stewardship of Abdullah Al-Othman, Takween is pioneering the modernization of industry through partnerships such as the recent acquisition of a packaging company
As Saudi Arabia’s petrochemicals capital, Eastern Province, undergoes a process of economic transformation, the focus is now firmly on global expansion, industry innovation and modernization and the development of partnerships between Saudi companies. One such company, Takween Advanced Industries, is leading the way.
Founded in 1993 in Al-Ahsa, the plastic processing pioneer has recently completed a major acquisition. This important deal integrates two of the biggest plastic companies in the region and presents the Takween group with opportunities for both diversification and international growth. According to observers and experts in the field of packaging, this acquisition is one of the most important integrations in Saudi Arabia in recent years.
As the group chairman and founder, Mr. Abdullah Al-Othman notes, “The acquisition is extremely significant in that it transforms Takween into one of the largest plastic industries in the Middle East and North Africa. Part of the significance comes from the diversification offered by the acquisition, in that it is heavily involved in the film sector, a new business for Takween, and it also brings an international dimension through its foreign subsidiary.”
This deal continues a trend of impressive group growth and industry integration for the Takween group. In 2010, it acquired majority stakes in both Advanced Fabrics (SAAF) and the UltraPak Manufacturing Company.
“The Takween Group of companies principally benefits from relatively close proximity to a high-class and reliable source of raw material,” says Mr. Al-Othman, referring to the fact that Eastern Province is where the vast majority of Saudi Arabia’s basic petrochemicals are derived, namely methane and natural gas feedstock.
“While this cannot be considered a particular competitive advantage for Takween – as all the other plastic producing companies in the Kingdom also enjoy a similar benefit – the result of our recent acquisition means that we will benefit from economies of scale.
The acquisition opens the door for “radical future development”, according to Mr. Al-Othman, and will help position Eastern Province and the kingdom as a pioneer in the packaging and bottling industries, both regionally and internationally.