Dow Chemical in the Middle East and Saudi Arabia's E.A. Juffali & Brothers Enter Fourth Decade of Joint Venture Success

02 Mar 2009 • by Natalie Aster

Dow Chemical in the Middle East, a leading science and technology company, together with E.A. Juffali & Brothers (Juffali), a leading manufacturing, engineering, construction, distribution and service company in the Kingdom of Saudi Arabia (KSA), are pleased to commemorate the start of a fourth decade of their highly successful partnership.

Dow and E.A. Juffali & Brothers' business relationship first began in 1976 when Juffali became Dow's distributors and sales representatives in KSA. Nine years later in 1985, the companies joined forces to form a joint venture, the Arabian Chemical Company (Polystyrene) Ltd. (ACC PS) for the production of STYROFOAM brand insulation. A second joint venture was established in 1993, Arabian Chemical Company (Latex) Ltd. (ACCL), for the production of carpet and construction latex, with the addition of paint in 1998 and paper in 2008. ACCL has helped promote the carpet industry in the region, establishing Saudi Arabia as the largest producer of carpet latex after the United States and Belgium. To cater to growing demand in new geographies, ACCL is presently reviewing added capacity.

Together, ACC PS and ACCL operate three plants: one in Jeddah on the Western coast of the Kingdom, another in Jubail in the Eastern Province, and a third in Jebel Ali Free Zone in the United Arab Emirates. Products manufactured at these plants have resulted in Dow and Juffali becoming major suppliers in the Middle East, Pakistan and select countries in Africa. Additionally, the partnership is represented beyond Saudi Arabia and the UAE with a presence in Jordan and Yemen.

The combined output of both entities includes products like energy-efficient STYROFOAM brand insulation, roof, wall and floor insulation, as well as added value products including pipe insulation, inserts in thermo blocks, inverted roof tiles, gypsum board laminates, and styrene butadiene latex for carpet, construction, paper industries and styrene acrylate latex for paint industries. STYROFOAM insulation has widely been used in world- class projects in the Middle East: Ski Dubai, one of the largest indoor ski resorts in the world, uses Dow STYROFOAM to fulfill low temperature requirements. Pioneering buildings such as the newly- opened Atlantis Hotel, Dubai Mall, and the world's tallest tower, Burj Dubai, also rely on STYROFOAM for their insulation needs.

"Dow's partnership with Juffali has led to the establishment of two solid and successful companies with sustainable growth over a period of thirty years, while also contributing to the diversification of the Saudi economy," said Earl Shipp, president, Dow Chemical India, Middle East & Africa (IMEA). "At Dow, we believe that a successful joint venture provides both partners with access to new markets and new growth opportunities, and our win-win joint venture with Juffali is a testament to our belief".

"Our joint venture relationship with Dow has seen tremendous success over the years. The products manufactured at our plants have enabled us to become leading suppliers across three continents," said Dr. Souhail El-Farouki, General Manager, Juffali Chemical. "Our long-standing relationship with Dow has allowed both companies to leverage each other's best-in-class capabilities in order to cater to the growth and needs of our customers across emerging regions. We look forward to continued partnerships and success with Dow in Saudi Arabia and beyond".

Source: Al Bawaba