Dow Chemical (Midland, Michigan / USA; www.dow.com) and Saudi Aramco (Dhahran / Saudi Arabia; www.saudiaramco.com) have signed a detailed memorandum of understanding relating to the construction, ownership and operation of a world-scale plastics and chemicals production complex in Saudi Arabia. The Ras Tanura Integrated Project includes production units for polyethylene, ethylene oxide and glycol, propylene oxide and glycol, chlor-alkali, vinyl chloride monomer, polyurethane components, epoxy resins, polycarbonate, amines and glycol ethers as well as a broad range of basic products including ethylene, propylene, aromatic and chlorine derivatives. Feedstock for the complex will be provided by Saudi Aramco's Ras Tanura refinery and its Ju'aymah gas processing plant with which the new facility will be integrated.

This is one of a growing number of projects Dow is planning in the Middle East. It reflects CEO Andres Liveris’ “asset light” strategy of pursuing joint ventures for commodity products with partners that offer "added strengths, such as further back integration in feedstocks or expanded geographic presence." – See Plasteurope.com Web of 12.02.2007. Dow recently fired two of its top managers in connection with rumours that they were collaborating with private equity and Middle East interests on a leveraged buyout of the entire group (PIE Web of 13.04.2007 and 10.05.2007).