The venture includes the flexible products business of Storsack, which was recently acquired by Greif. Storsack, the world's largest producer of flexible intermediate bulk containers (FIBCs), has 3000 employees and 16 production facilities worldwide.

The JV will be completed after certain conditions are satisfied, including any necessary merger and regulatory approvals.

"This joint venture extends our core rigid industrial packaging business," said Michael J. Gasser, Greif chairman and chief executive officer. "By joining forces with NSC and the Dabbagh Group, which has an established reputation as a trusted partner and pioneer of business within the Middle East and internationally, the JV will benefit from upstream advantages in the flexible products business," he said. "Also, the extension of Greif's product portfolio to include flexible woven polypropylene packaging enables us to diversify deeper into markets such as the food and pharmaceutical industries."

The JV expects to build a factory in the Kingdom of Saudi Arabia (KSA). The factory will produce the woven polypropylene fabric used to manufacture the finished flexible containers. It also will produce flexible containers for regional customers.

Majed Al Kassabi, chairman of Dabbagh Group, said, "Together, NSC and Greif are in a prime position to leverage attractive growth opportunities in the flexible packaging global market. The combination of Greif's industrial packaging expertise, NSC's proven entrepreneurship, and Saudi Arabia's competitive cost basis will provide customers with unrivalled value."

David Fischer, Greif president and chief operating officer, said, "Applying Greif's global footprint and the Greif Business System to this strategic JV will create additional value for our customers and shareholders. By locating in KSA, we will have many advantages including a progressive, business-friendly environment, advantaged logistics and abundant energy and raw material sources."

Greif, Inc. is a world leader in industrial packaging products and services. The company produces steel, plastic, fiber, flexible, multiwall, and corrugated containers and containerboard, and provides blending and packaging services for a wide range of industries. Greif also manages timber properties in North America. The company is strategically positioned in more than 50 countries to serve global and regional customers. Additional information is available at www.greif.com.

National Scientific Company Limited is part of the Dabbagh Group, one of the leading privately held business groups in the Middle East. The Group was established in 1962 and today comprises more than 25 autonomous companies in diversified businesses with more than 5000 employees operating in various countries around the world. Dabbagh's core business portfolio is structured around strategic portfolios including petroleum products, manufactured housing, food, and agriculture.  

Swicorp acted as financial advisor to NSC and the Dabbagh Group.