DP World and Dow Chemical sign shipping/storage deal
DP World has signed a storage and shipping deal with Dow Chemical, aimed at supporting the US company’s plan to establish a regional trading centre at Jebel Ali Port.
The deal comes after Dow Chemical began expanding its US $20 billion Sadara joint-venture petrochemicals plant with Saudi Aramco.
The plant has been debeloped in Jubail Industrial City II, on the Red Sea coast of Saudi Arabia’s Eastern Province.
DP World and Dow Chemical declined to provide details about the deal due to “confidentiality obligations”, but Moosa Al Moosa, Dow Chemical’s UAE head and regional finance chief, indicated the significant scope of the deal.
“I’ll need a lot more warehouses, a lot more containers. In terms of storage, we would be thinking about storing US $1.5 billion worth of products here at Jebel Ali,” he was quoted as saying by The National.
He also said that would mean “a tenfold increase” in Dow Chemical’s storage and handling requirements.
The US company’s Dubai office is expected to be the centre of its trade for the region, especially for growing markets in India, Africa and other Middle East countries.