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    aromatics
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    3. Aromatics

    Aromatics

    The Bazan Group, through Gadiv Petrochemicals Ltd., (“Gadiv”) manufactures and markets aromatics which are intermediate products or components of the raw materials used to produce other products. Gadiv is the only company in Israel which operates in the aromatics segment. Founded in 1974, it is owned by the Bazan Group.

    The principal aromatics manufactured by Gadiv are benzene, toluene, xylene, paraxylene, orthoxylene phthalic anhydride and solvents. These are aromatics which are used as raw materials in the manufacturing process of various end products such as:


    Clothing

    Packaging

    Medicines

    Paint

    Cosmetics

    Computers

    Domestic maintenance products

    Parts for the automobile industry

     

    Production capacity

    Gadiv’s annual production capacity is approximately one million tons of reformate and approximately 100,000 of dripolene, from which various aromatics products can be produced. Aromatics production processes in Gadiv are implemented at temperatures of up to 400 degrees Celsius and at pressures of up to 30 atmospheres. The production lines operate on a 24/7 basis with the exception of initiated shutdowns, maintenance, or problem resolution.


    Customers

    The Bazan Group’s principal customers in the aromatics sector are manufacturers in the fields of textiles, chemicals, paint and plastic. Approximately 95% of aromatics products manufactured by Gadiv are sold to overseas customers (mainly in the Mediterranean Basin area, the USA and Europe). The Company is regarded as a significant player in this field in the Mediterranean Basin area where its market share is estimated at approximately 13%.

    Gadiv’s customers view it as a trustworthy and high-quality supplier. This is significant because aromatics are supplied to industrial companies which need them as raw materials for the manufacture of other products. Consequently, most of the technological capabilities and rich experience of Gadiv are directed toward compliance with the uncompromising standards of regular stable supply dates. These characteristics make it a reliable and sought-after company in the sector.


    Leading player in its field

    The Bazan Group, by means of Gadiv, is a leading player in the field of aromatics. This is the result of a number of important advantages to which the Company attaches much importance:

    • The Company's reputation and positioning as a reliable company which maintains uncompromising standards of quality, homogeneity and compliance with supply times.
    • Experience accumulated over many years and advanced technological capabilities which enable Gadiv to demonstrate a high utilization rate of raw materials and implement special innovative methods in order to optimize energy use.
    • Use of natural gas – the supply of all natural gas requirements (since 2013) has led to significant streamlining of energy consumption in the Company's plants.
    • High capabilities and experience which have led to a reduction in manufacturing costs.
    • Investment of resources in constant relentless improvements of product quality and the Company's positioning as a result of the quality of its product line.
    • The proximity of Gadiv to the Company's facilities reduces the cost of transporting the raw materials used in the production of aromatics. The proximity is expressed in additional advantages such as reduction of transportation cost of raw materials, navigating from the production of benzene to aromatics (one of which is carried out at the expense of the other), etc.
    • Entering into long-term agreements with customers makes it easier to cope with market changes.
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