Description
The Dow Chemical Company has been one of America's most innovative ever since its founding in 1897 in Midland, MI, by Herbert H. Dow. More than 30 percent of its 2011 global sales of $59.9 billion came from products introduced in the past five years.
CASE STUDY: The Dow Chemical Company
The Dow Chemical Company has been one of America’s most innovative ever since its founding in 1897 in
Midland, MI, by Herbert H. Dow. More than 30 percent of its 2011 global sales of $59.9 billion came from
products introduced in the past five years. The company has R&D laboratories with 5,500 Dow researchers
located in more than 10 countries, including the United States, and has doubled its number of filed U.S.
patents since 2006. Expanding globally has long been critical for Dow to reach new customers in new markets
and to sustain its innovation edge by learning new ideas and ways to provide products from its experiences
around the world. This expansion and innovation supports Dow’s success worldwide — including its U.S.
workforce and its U.S. suppliers and their workers.
Dow’s largest global venture is Sadara Chemical Company. Announced in 2011, Sadara is a $20 billion joint
venture with Saudi Arabian Oil Company (Saudi Aramco) to construct in the Kingdom of Saudi Arabia a fully
integrated chemicals complex. Scheduled to come online in the second half of 2015 and to span eight square
kilometers, this petrochemical facility will be one of the world’s largest (the largest ever built in a single phase)
and is expected to ultimately create thousands of direct and indirect employment opportunities through the
complex and related investments.
The benefits Sadara will bring to both Dow and Saudi Aramco are clear. The Kingdom aspires to diversify its
economy, and building chemicals capacity that can take advantage of its plentiful petroleum feedstock is a
natural step in that direction. Dow’s industry-leading technologies and world-class operational and marketing
capabilities make it a strong partner for this endeavor. Building Sadara in Saudi Arabia reduces the costs of
that essential petroleum feedstock to expand the venture’s possibilities. Twenty-six manufacturing units are
planned that, when fully operational, will make many products for the first time in Saudi Arabia. Sadara is
forecast to produce more than 3 million metric tons annually and generate $10 billion in revenue in industries
including adhesives, construction, packaging and transportation.
Since 2007, Sadara has generated more than $1 billion in contracts for 18 U.S. companies that are providing
engineering, design and other high-value services. For example, in August 2011, U.S.-based Fluor Corporation
was awarded a substantial contract to provide engineering, procurement and construction-management
services at the Sadara site. During the last three years, approximately 700 U.S. workers at leading engineering
companies were engaged to support engineering and design work for Sadara. Many of these highly skilled,
professional engineering roles will remain engaged for the next three years. As the project progresses into
construction, it is estimated that approximately 2,500 U.S. workers will be involved in delivering goods and
services through parts and equipment manufacturing. With many U.S. suppliers continuing to provide tools,
equipment, spare parts and services to Sadara after it becomes fully operational, this joint venture will sustain
jobs over the long term both in the United States and around the world.
American Companies and Global Supply Networks: Driving U.S. Economic Growth and Jobs by Connecting with the World
29
doc_710212680.pdf
The Dow Chemical Company has been one of America's most innovative ever since its founding in 1897 in Midland, MI, by Herbert H. Dow. More than 30 percent of its 2011 global sales of $59.9 billion came from products introduced in the past five years.
CASE STUDY: The Dow Chemical Company
The Dow Chemical Company has been one of America’s most innovative ever since its founding in 1897 in
Midland, MI, by Herbert H. Dow. More than 30 percent of its 2011 global sales of $59.9 billion came from
products introduced in the past five years. The company has R&D laboratories with 5,500 Dow researchers
located in more than 10 countries, including the United States, and has doubled its number of filed U.S.
patents since 2006. Expanding globally has long been critical for Dow to reach new customers in new markets
and to sustain its innovation edge by learning new ideas and ways to provide products from its experiences
around the world. This expansion and innovation supports Dow’s success worldwide — including its U.S.
workforce and its U.S. suppliers and their workers.
Dow’s largest global venture is Sadara Chemical Company. Announced in 2011, Sadara is a $20 billion joint
venture with Saudi Arabian Oil Company (Saudi Aramco) to construct in the Kingdom of Saudi Arabia a fully
integrated chemicals complex. Scheduled to come online in the second half of 2015 and to span eight square
kilometers, this petrochemical facility will be one of the world’s largest (the largest ever built in a single phase)
and is expected to ultimately create thousands of direct and indirect employment opportunities through the
complex and related investments.
The benefits Sadara will bring to both Dow and Saudi Aramco are clear. The Kingdom aspires to diversify its
economy, and building chemicals capacity that can take advantage of its plentiful petroleum feedstock is a
natural step in that direction. Dow’s industry-leading technologies and world-class operational and marketing
capabilities make it a strong partner for this endeavor. Building Sadara in Saudi Arabia reduces the costs of
that essential petroleum feedstock to expand the venture’s possibilities. Twenty-six manufacturing units are
planned that, when fully operational, will make many products for the first time in Saudi Arabia. Sadara is
forecast to produce more than 3 million metric tons annually and generate $10 billion in revenue in industries
including adhesives, construction, packaging and transportation.
Since 2007, Sadara has generated more than $1 billion in contracts for 18 U.S. companies that are providing
engineering, design and other high-value services. For example, in August 2011, U.S.-based Fluor Corporation
was awarded a substantial contract to provide engineering, procurement and construction-management
services at the Sadara site. During the last three years, approximately 700 U.S. workers at leading engineering
companies were engaged to support engineering and design work for Sadara. Many of these highly skilled,
professional engineering roles will remain engaged for the next three years. As the project progresses into
construction, it is estimated that approximately 2,500 U.S. workers will be involved in delivering goods and
services through parts and equipment manufacturing. With many U.S. suppliers continuing to provide tools,
equipment, spare parts and services to Sadara after it becomes fully operational, this joint venture will sustain
jobs over the long term both in the United States and around the world.
American Companies and Global Supply Networks: Driving U.S. Economic Growth and Jobs by Connecting with the World
29
doc_710212680.pdf