Dow signs coatings, silicones investment agreements in Saudi Arabia
MIDLAND, Mich. — The Dow Chemical Company signed an agreement to construct a state-of-the-art manufacturing facility to produce a range of polymers for coatings and water-treatment applications in the Kingdom of Saudi Arabia (KSA), 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 US 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 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.
Dow maintains several joint ventures in the region including Sadara Chemical Company, a joint venture with Saudi Arabian Oil Company (Saudi Aramco).
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