The UAE-based MBT Middle East, a construction chemicals firm, expects to become a stronger force following the merger earlier this year of a competitor with its parent to form a leading global specialty chemicals player.

MBT Middle East's parent SKW Trostburg merged with Degussa-Huels in February, after their parents Veba and Viag merged to form utility E.ON, which holds a 64.55 stake in the combined German group.

As the world's largest specialty chemical manufacturer, the new Degussa achieved sales of almost $15 billion last year, excluding trading in precious metals.

In an ambitious expansion programme, it will focus on six core specialty chemical divisions, health and nutrition, construction chemicals, fine and industrial chemicals, specialty polymers, performance chemicals and coatings and advanced fillers.

The company is expected to divest non-core businesses, realising $2.6 billion while further acquisitions will reinforce core business, such as the expected acquisition of Laporte Chemicals.

The Construction Chemical Division is a world leader with sales of $1.5 billion in 2000 and this new, combined strength will make Degussa a formidable force in the sector.

Commenting on the merger, MBT Middle East director and general manager Iven Chadwick said: 'The Degussa Group is structured to decentralise activities and decision making as much as is possible, after all, there is tremendous variety in regional markets and it's important to react quickly to satisfy specific local demand.

'In the Middle East, MBT Middle East LLC in Dubai will remain the regional centre for the construction chemical business and in a further development, is providing services to other Degussa divisions to enhance activities in the region.'

MBT and other well-established brand names will continue without change and market activities will not be affected by the consolidation of the Construction Chemical Division within Degussa.

'We are excited about the increased resources available to us,' said Chadwick.

'This means that MBT can offer even greater solutions to the region's construction industry.'

Degussa plans further capital expenditure to enhance the Construction Chemicals Division's position and aims to achieve sustained growth above the market average.

Over the next three years the group will invest $1.15 billion in capital expenditure and will complete construction of an international research and competence centre in Trostberg, Germany.