Dow and Al-Hejailan Group sign MOU to build joint venture MDEA plant in Saudi Arabia

  • New capacity will help meet growing customer demand for natural gas purification in the Middle East region.
  • Construction is expected to begin in 2024 with production projected to come online in 2025.
  • JV to provide raw materials to new Dow facility which will enable growth in high-performance gas treating derivatives.

MIDLAND, Mich. and RIYADH, Saudi Arabia, July 27, 2022 -- Dow (NYSE: DOW) and the Al-Hejailan Group signed a Memorandum of Understanding (MoU) to form a joint venture to design, build and operate a methyl diethanolamine (MDEA) plant in the PlasChem Park in Jubail, Kingdom of Saudi Arabia. The joint venture will enable Dow and Al-Hejailan to meet growing demand for natural gas purification in Saudi Arabia and in the broader Middle East region.

The Al-Hejailan Group is a family business headquartered in Riyadh that believes in accelerating national progress by creating skilled jobs for Saudi nationals and investing in opportunities for international partners."Saudi Arabia is a significant player in both the regional and global petrochemicals market, with further growth expected in the coming years. We are therefore delighted to sign this agreement with Dow, as it aligns with our group's strategy of participating in the downstream industry," said Faisal J. Al-Hejailan, CEO Al-Hejailan Group. "We also appreciate and recognize the leading efforts of the Ministry of Energy & the Royal Commission in allowing the multiple components of Saudi Arabia's industrial base to work together to deliver on Vision 2030 in general, and this Al-Hejailan-Dow agreement in particular."

"This partnership is a demonstration of delivering solutions that will help advance the energy transition," said Howard Ungerleider, President and Chief Financial Officer, Dow. "We are excited for this opportunity with Al-Hejailan and appreciate the instrumental support of the Ministry of Energy & the Royal Commission."

The JV is expected to be built and operated by the Al-Hejailan Group. Under the terms of the agreement, Dow will hold 25% stake and Al-Hejailan will hold 75% stake in the joint venture. The facility will utilize Dow's manufacturing technologies, and Dow will be responsible for marketing of the plant's production of MDEA. The construction of the plant is expected to begin in 2024 and to come online in 2025.

In addition to the joint venture, Dow will also build a Dow-owned downstream manufacturing facility which will source raw materials from the new JV. This new facility will expand capacity of the Company's MDEA-based high performance UCARSOL™ products and will also blend Dow's ACCUTRACE™ fuel markers for the region. This investment will position Dow to further enable local solutions for the energy transition, including delivery of industry leading gas treating, carbon capture, and fuel additive technology to the region. The facility is expected to come online in late 2024.

About Dow 
Dow (NYSE: DOW) combines global breadth; asset integration and scale; focused innovation and materials science expertise; leading business positions; and environmental, social and governance (ESG) leadership to achieve profitable growth and deliver a sustainable future. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company in the world. 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, mobility and consumer applications. Dow operates 104 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $55 billion in 2021. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit or follow @DowNewsroom on Twitter.

About Al-Hejailan Group 
The Al-Hejailan Group is a family business headquartered in Riyadh that believes in accelerating national progress by creating skilled jobs for Saudi nationals and investing in opportunities for international partners. Building on the success of its first engineering firm over 40 years ago, it has created a diversified and exceptional portfolio of innovation-led businesses across key sectors, including engineering, manufacturing, metalworks, petrochemicals, and telecommunications. Known for their ability to deliver constant growth, the portfolio companies play a key role in supporting the needs of a fast-changing society and national economy and operate within a culture driven by the fundamental values of fairness, trust, openness, and cooperation. For further details, visit

For further information contact:

J.D. Sterba
+1 (989) 636-5936

Rakan Abudaff
+966 114 761 414
Al-Hejailan Group



SOURCE The Dow Chemical Company