Al Hejailan Group, a major engineering and contracting firm in Saudi Arabia, has joined hands with global industrial group Dow to create a new company that will design, build and operate a polyacrylic acid (PAA) and emulsion polymers plant at Plaschem Park in the kingdom.
The new joint venture company will have Al Hejailan as the majority shareholder with a 75% stake and Dow with the rest.
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 upcoming plant at the Plaschem Park will be built and operated by Al Hejailan Group, while Dow will be responsible for the marketing of the plant’s production.
Construction work is set to begin in 2021 and production is expected to come on-stream in 2023.
CEO Faisal Al Hejailan said: "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 programme," he added.