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 tpy and will be built and operated by Al-Hejailan Group in Plaschem Park. The facility will utilise 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 localisation programme 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.”
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/18112020/al-hejailan-and-dow-form-joint-venture/