Al-Hejailan Group and Dow to form JV to build PAA and emulsion polymers plant in Saudi Arabia

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

  
Faisal Al Hejailan, Al Hejailan CEO

Faisal Al Hejailan, Al Hejailan CEO

Riyadh, Saudi Arabia and Midland, Mich.:Al-Hejailan Group and Dow (NYSE: 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. 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.”

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About Al-Hejailan Group

Al-Hejailan Group was founded in 1980 as an engineering and contracting firm. The Kingdom’s industrialization program in this period opened avenues for the group to venture into other sectors of the economy, thus evolving into a well-diversified business house over a period of time. Today Al-Hejailan Group maintains a strong presence in areas such as Industry with a focus in the manufacturing of chemicals, the production of stainless-steel pipes and metal works along with Oil & Gas Engineering design and supervision, construction management, trading, logistics support and telecommunications. In the local and international business arena, Al-Hejailan thrives on the principle of mutual trust and integrity. More information about Al-Hejailan can be found at www.hejailan.com 

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure and consumer care. Dow operates 109 manufacturing sites in 31 countries and employs approximately 36,500 people. Dow delivered sales of approximately $43 billion in 2019. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com  or follow @DowNewsroom on Twitter. 

Media Contacts:
Rakan Abudaff
Senior Vice President
Al-Hejailan Group
+966114761414
rabudaff@hejailan.com 

Fadi Matar
Dow
Public Affairs Director
India, Middle East, Africa & Turkey
fmatar@dow.com 

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