The Dow Chemical Company
) executive vice president Jim Fitterling emphasized the role of
manufacturing and innovation in driving the Middle East region's
Speaking at the 8th Annual Gulf Petrochemicals & Chemicals
Association (GPCA) Forum in Dubai, Fitterling's point of
discussion centered on the emerging petrochemical landscape in
the Middle East. The forum saw more than 1,700 industry
professionals discussing the trends impacting the industry.
Fitterling also highlighted the necessity to adapt manufacturing
as a key economic driver and to add diversity to the economy that
has been traditionally dependant on oil and gas revenues. This
vision can be achieved by implementing innovation-led strategies
that match the world's need and wants.
To present an example of the above mentioned vision, Fitterling
put forward Dow's joint venture with Saudi Aramco, Sadara
Chemical Company (Sadara). Once completed, the Sadara complex
will be the largest petrochemical facility ever built in a single
phase in Saudi Arabia.
The new Sadara complex will employ roughly 7,000 people once
operational, and is expected to produce 3.2 million tons of
performance, value-added chemicals and plastics -- a supply that
will help to address the growing demand from the evolving Asian
markets, along with the Middle East and Africa.
Sadara will establish itself as a world-class, competitive
manufacturing base in the middle-east region, using a
demand-driven strategy with innovation and close collaboration
with the partners in the region. The collaboration also signifies
the fact that the Middle East region is capable to offer more
than simple hydrocarbons.
Sadara also projects another classic example of establishing
vital economic growth and sustainability in the region through
its public-private partnership. By clubbing the influence and
facilitation powers of public entities with the niche expertise
and experience of private enterprises, this venture is expected
to deliver mutually beneficial results that will positively
impact at an economic, environmental and social level.
At the deliberation, Fitterling also emphasized the need for
additional focus on education, which will enhance the region's
science, technology, engineering and math skills. This in turn
will also increase investments in the education sector, where
emerging needs of the private sector are high, and develop the
much-needed critical mass of skilled workers.
In short, Fitterling said that the need of the hour is to embrace
manufacturing, adapt to a more market-driven mentality and
establish a new era of public-private partnerships. All these
will help develop the region's economy and industry moving
forward. This will stimulate the real technical innovation at
home. Thereby, attracting investments from abroad that can uplift
the Middle East's domestic markets.
Dow currently carries a Zacks Rank #3 (Hold).
Other companies in the chemical industry worth considering
Asahi Kasei Corp.
Akzo Nobel NV
). While both Methanex and Asahi Kasei hold a Zacks Rank #1
(Strong Buy), Akzo Nobel retains a Zacks Rank #2 (Buy).
ASAHI KASEI CP (AHKSY): Get Free Report
AKZO NOBEL NV (AKZOY): Get Free Report
DOW CHEMICAL (DOW): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
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