MIDLAND, Mich.—Dow Chemical Co. has signed two agreements to advance its investments in Saudi Arabia, according to a statement.
The first constructs a manufacturing facility to produce a range of polymers for coatings and water treatment applications. The second is 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 CEO, signed the agreements at an event in Riyadh, Saudi Arabia that was attended by U.S. President Donald J. Trump; Saudi Arabia King Salman bin Abdulaziz Al-Saud; Mohammad bin Salman bin Abdulaziz Al-Saud, deputy crown prince of Saudi Arabia; and other distinguished guests.
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. 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. These investments are another example of Dow's long-term strategy in the Kingdom and region.
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.