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MOSCOW (MRC) -- Al-Hejailan Group and
Dow announced an agreement to form a joint venture to design, build and operate
a polyacrylic acid (PAA) and emulsion polymers plant in the Kingdom of Saudi
Arabia, according to Hydrocarbonprocessing.
Al-Hejailan will hold a 75% stake in the joint venture, and Dow will
have 25% ownership.
This partnership will enable Al-Hejailan and Dow to
meet growing customer demand for coatings and water treatment applications in
the Kingdom of Saudi Arabia and the broader Middle East region, as well as
penetrate new markets.
The plant is expected to have a capacity of 40,000
metric tons per year and will be built and operated by Al-Hejailan Group in
Plaschem Park. The facility will utilize Dow’s manufacturing technologies, and
Dow will be responsible for the marketing of the plant’s production.
Construction of the plant is expected to begin in 2021 and production is
expected to come on-stream in 2023.
Faisal Al-Hejailan, chief executive
officer of Al- Hejailan Group, said “At Al- Hejailan Group, we are excited about
this investment, which fulfills an important milestone in our group’s overall
strategy and drives towards the development of more robust and expansive
downstream manufacturing capabilities in the Kingdom. It further strengthens our
strategic partnership with Dow, as we work jointly to capture downstream
opportunities that align with the Kingdom’s localization program and the overall
Vision 2030 program.”
“This investment further reinforces Dow’s
commitment to serving the region and promoting the downstream industry in the
Kingdom of Saudi Arabia,” said Howard Ungerleider, president and chief financial
officer for Dow. “This strategic partnership with Al-Hejailan builds on Dow’s
long-standing presence in the Kingdom and supports the long-term growth
potential we see for Dow and our partners throughout the region.”
As MRC
reported
earrlier, in September, 2020, Dow and Luhai, an integrated waste management
company located in Xiamen, China, announced their collaboration to give plastics
waste collected by Luhai a second life, thereby increasing the circularity of
plastics in China. The agreement is in line with Dow’s new sustainability
targets to Stop the Waste by enabling one million metric tons of plastic to be
collected, reused or recycled through its direct actions and partnerships by
2030.
According to MRC's ScanPlast report,
Russia's estimated PE consumption totalled 1,594,510 tonnes in the first nine
months of 2020, up by 1% year on year. Only high denstiy polyethylene (HDPE)
shipments increased. At the same time, PP shipments to the Russian market
reached 880,130 tonnes in the nine months of 2020 (calculated using the formula:
production minus exports plus imports, exluding producers" inventories as of 1
January, 2020). Supply increased exclusively of PP random copolymer.
The
Dow Chemical Company is an American multinational chemical corporation. Dow is a
large producer of plastics, including polystyrene, polyurethane, polyethylene,
polypropylene, and synthetic rubber. |
