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Dow to expand coatings & silicones capacity in Saudi Arabia

It will build manufacturing facilities for polymers (used in coatings) & high performance silicones

Dow to expand coatings & silicones capacity in Saudi Arabia
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BS B2B Bureau Midland, Michigan
Last Updated : May 24 2017 | 4:44 PM IST
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The Dow Chemical Company signed two agreements on Saturday 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.

“Dow has been a long-term strategic partner in Saudi Arabia for nearly four decades and is the largest foreign investor in the country. 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,” said Andrew Liveris, chairman and chief executive officer, Dow.

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 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 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. 

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 utilise high performance glass bonding technologies from Dow Silicones. 

These investments are another example of Dow’s long-term strategy in Saudi Arabia 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 commercialisation 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 tonnes of high-value performance plastics and specialty chemical products, capitalising on rapidly growing markets such as transportation, infrastructure, packaging and consumer products. The performance-focused products will add new value chains to the Saudi Arabia’s vast petroleum reserves, resulting in the diversification of the economy and region.

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First Published: May 24 2017 | 4:39 PM IST

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