MIDLAND, Mich.--(BUSINESS WIRE)--The Dow Chemical Company (NYSE: DOW) today signed two agreements to advance the Company’s strategic, innovation agenda in the Kingdom of Saudi Arabia (KSA) which will bring leading edge technologies to KSA that support the Kingdom’s Vision 2030 economic diversification and advanced manufacturing development plan.
Dow signed an agreement to construct a state-of-the-art manufacturing facility to produce a range of polymers for coatings and water-treatment applications, and a memorandum of understanding for a feasibility study related to a proposed investment in the Company’s Performance Silicones franchise.
Andrew Liveris, Dow’s chairman and chief executive officer, signed the agreements at an event in Riyadh, Saudi Arabia, attended by U.S. President Donald J. Trump, His Majesty, King Salman Bin Abdulaziz Al-Saud, Custodian of the Two Holy Mosques, His Royal Highness, the Deputy Crown Prince of Saudi Arabia, Mohammad bin Salman bin Abdulaziz Al-Saud, and other distinguished guests.
“Dow has been a long-term strategic partner in Saudi Arabia for nearly four decades and is the largest foreign investor in the country,” said Liveris. “Through our global and regional experience and expertise, we have unmatched capabilities to deliver high value, innovative solutions that support the Kingdom in key growth areas that help advance the Saudi’s Vision 2030 plan designed to create a vibrant society and a thriving diversified economy.”
Located in the PlasChem Park in Jubail, the coatings facility will service the needs of the Saudi Arabian market with an innovative range of acrylic-based polymers for industrial and architectural coatings and water-treatment and detergent applications.
The investment will create approximately 1,000 jobs during peak construction and approximately 100 high-skilled, full-time operations jobs in the Kingdom, ultimately growing local manufacturing and sustainable economic growth.
The new coatings facility will complement Dow’s existing coatings capabilities in the Middle East, which include an existing facility at Jebel Ali, in Dubai, United Arab Emirates.
The proposed silicones investment will include constructing a fully integrated, world-scale siloxanes and high performance silicones complex geared towards markets and industries such as home and personal care, automotive, high performance building and construction, solar energy, medical devices, and oil and gas. When complete the complex will support the economic impact of KSA through the creation of approximately 350 full-time, technology-skilled jobs.
This move will serve to further integrate the former Dow Corning silicones business into Dow, and will accelerate the development of new hybrid materials which will be unique, technology rich solutions for regional-specific needs. For example, the Middle East is home to many of the world’s largest and tallest buildings, which utilize high performance glass bonding technologies from Dow Silicones. Dow was recently awarded the contract for supply of silicones sealants for the structural glazing façade of the Jeddah Tower in KSA. Construction of the façade will start later this year. Upon completion, the Jeddah Tower will be the tallest building in the world and will utilize state-of-the-art silicones technology from Dow to realize its futuristic architectural design.
These investments are another example of Dow’s long-term strategy in the Kingdom and region.
Dow maintains several joint ventures in the region including Sadara Chemical Company, a joint venture with Saudi Arabian Oil Company (Saudi Aramco). Comprising 26 manufacturing units, Sadara is one of the world’s largest integrated chemical facilities and the largest ever built in a single phase.
Sadara has completed construction on all of its 26 manufacturing units with 19 units either in operating or start up mode. Five units are fully up and running – marking the commercialization of Sadara’s entire plastics franchise. And all remaining units are on track for a sequenced start-up throughout 2017 to meet rising demand in Asia, Africa, the Middle East, India, and Eastern Europe.
The complex possesses flexible cracking capabilities and will produce more than 3 million metric tons of high-value performance plastics and specialty chemical products, capitalizing on rapidly growing markets such as transportation, infrastructure, packaging and consumer products. The performance-focused products will add new value chains to the Kingdom’s vast petroleum reserves, resulting in the diversification of the economy and region.
Sadara employs more than 4,000 talented Saudis and foreign nationals, and will help diversify the economy by adding value to the Kingdom’s vast petroleum reserves and making chemical products not produced before in the Middle East. Dow has estimated that the project will create 14,000 new jobs in Saudi Arabia, ~4,000 of which are from direct employment and the rest indirectly.
Other joint ventures in the region include a joint venture with Juffali & Brothers, and Saudi Acrylic Monomer Company (SAMCo). Additional strategic investments include agreements with King Abdullah University of Science and Technology (KAUST) to construct a new Dow Middle East Research and Development Center, and a Reverse Osmosis manufacturing facility – the first unit of its kind outside of the United States.
In June, 2016, Dow became the first company to receive a trading license from the Government of Saudi Arabia, allowing 100 percent ownership in the country’s trading sector.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from material, polymer, chemical and biological science to help address many of the world's most challenging problems, such as the need for fresh food, safer and more sustainable transportation, clean water, energy efficiency, more durable infrastructure, and increasing agricultural productivity. Dow's integrated, market-driven portfolio delivers a broad range of technology-based products and solutions to customers in 175 countries and in high-growth sectors such as packaging, infrastructure, transportation, consumer care, electronics, and agriculture. In 2016, Dow had annual sales of $48 billion and employed approximately 56,000 people worldwide. The Company's more than 7,000 product families are manufactured at 189 sites in 34 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.