Pearl Polyurethane aims to expand globally following buy-out

Dubai-based performance materials company Pearl Polyurethane Systems is accelerating its growth course with its parent entity Pearl Overseas Industries. It signed an agreement to acquire the remaining 51% shareholding in Pearl Covestro Polyurethane Systems.

Pearl Industries will take ownership in the company to 100%, acquiring the additional shareholding from its former joint-venture partner, Covestro AG.

Headed by incoming former-Bayer executive Martin Kruczinna, who will take over the role of CEO, the newly independent company has been rebranded Pearl Polyurethane Systems LLC.

Both parties have reconfirmed their ongoing partnership through a long-term supply and technical service agreement. Financing of the deal was provided by HSBC Bank.

This development marks a further positive step in the system house’s growth story over the past 25 years, resulting in Pearl Covestro becoming the prominent supplier for polyurethane systems across the Middle East.

With roots extending back to Otto Bayer, the German inventor of Polymer in 1937, the original Dubai-based Joint Venture Bayer Pearl, which was founded in 2006 with technical support from Bayer AG, formed a joint venture on the foundation of its long-term partner Pearl, founded in Dubai in 1994.

The company has supplied polyurethane foam systems for several projects in the Gulf region, including Palm Jumeirah, Downtown Dubai, and Ski Dubai in the Mall of the Emirates. Independently owned, Pearl Polyurethane Systems is now poised for further growth and international expansion from its base in Dubai.

Kruczinna said: “Our vision remains focused on innovation and sustainability. With this overarching objective firmly in mind, our mission is to continuously drive innovation to provide our customers with a competitive edge in the market by anticipating their future needs.

“One of our core competences is rigid-foam polyurethane systems for residential and commercial buildings – systems that feature state-of-the-art insulation properties and meet all international fire safety norms. Relying on our Dubai-based team of industry experts, we intend to leverage these capabilities over time to further expand our product range through innovation and engaging with our industry partners to meet the ever-changing needs of our customers.”

Prior to this deal, Pearl Polyurethane Systems was the first system house business in the Middle East to launch a new generation of spray foam systems with zero ozone depletion potential.

Kruczinna explained ‘sustainability’ will remain a central theme of the new entity and Pearl Polyurethane Systems remains committed to reducing the environmental impact of its products in close cooperation with its customers.

“Research and development have always played an important role and kept our products at the forefront of the industry. To ensure we remain an industry leader, we are committed to constantly improving our customers’ production processes and methods for each one of our first-class polyurethane products.

While our strategy remains to innovate and further grow our product range, we will also embark on further expansion beyond the Middle East to increase our international footprint and add new markets through controlled and sustained growth,” concluded Kruczinna.

Pearl Polyurethane Systems offers a comprehensive range of polyurethane formulations and prepolymers to produce high-performance polyurethane foams and elastomers under a range of brand names.