Commodity trading company Trafigura Group has entered into a joint venture agreement with trading and logistics company Altis Group International in an effort to create a commodity petrochemical trading business, with a focus on bulk liquid chemicals.
The joint venture has been formed between Trafigura and senior executives from the petrochemical trading industry, including the current management team of Altis.
It will include two new trading entities – the already existing Altis Group International for the US, based in Houston and Altis International (Singapore), which will have a branch office in Geneva.
Trafigura senior managers Chris Clarkson, Head of Gasoline Trading and Tom Jay, who until recently headed the Deals Desk for refined metals, bulk and concentrates, will join the boards of the new venture.
“We believe that the time is right to start exploring the potential of this market,” Tom Jay said.
“The market for petrochemicals is expected to grow significantly over the next few years, with Altis well placed to capture a share of this market,” he added.
The new venture will be led by a team of industry veterans with more than 100 years of combined relevant experience, according to Trafigura.
“The new global venture with Trafigura will be transformative not only for Altis and its employees but for all of our commercial partners. Teaming up with Trafigura will accelerate our growth and ability to expand our trading reach globally,” Jeff McNear, President of the Altis Group International management team, explained.
Formed in 2014, Altis focuses on the trade of bulk liquid chemicals. Active in the petrochemical markets on a worldwide basis, with expertise in handling shipping and logistics for a wide range of chemicals, the employees and commercial activities of Altis will transition into the US-based and international companies and serve as the trading platform for the new venture.
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials — including oil and refined products and metals and minerals.