Saudi Arabia: Polymer Production During Trumps' Visit — Dow Signs Two Agreements in Saudi Arabia
The Dow Chemical Company signed two agreements for projects in in the Kingdom of Saudi Arabia. The company signed an agreement to construct a 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.
Midland/USA — 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 a range of acrylic-based polymers for industrial and architectural coatings and water-treatment and detergent applications.
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.
Intense Trade Ties
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.
The company 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.
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.
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 % ownership in the country’s trading sector.