U.S. Markets closed

Dow Chemical Celebrates Initial Shipment of RO Elements

Zacks Equity Research

The Dow Chemical Company DOW celebrated the first shipment of its Dow Filmtec Reverse Osmosis (“RO”) elements from its new Saudi Arabia Dow Water & Process Solutions’ (DW&PS) Jubail Operations manufacturing unit. The shipment is meant to cater to the requirements of emerging markets.

The new RO production facility, which is the first of its kind built outside the U.S., became functional since Dec 2015 to better serve the local Saudi Arabian market and meet the rising demand for RO in the Middle East and Africa regions, along with Eastern Europe, India, China and Southeast Asia.

According to Yochai Gafni, business unit director for RO at DW&PS, a unit of Dow, the company’s Jubail Operations are helping to tackle regional water scarcity challenges in the Middle East and North Africa countries where annual domestic water demand is expected to more than triple over the next 20–30 years owing to rapid urban economic growth. Dow will aid in the delivery of a strong local supply of advanced technologies for municipal and industrial water applications.

The company’s fully-owned Jubail Operations, which manufacture Filmtec RO elements for seawater and brackish water desalination, and for water reuse of potable, non-potable and industrial water, is integrated into the Sadara Chemical Company complex – the joint venture developed by Dow and Saudi Aramco.

Moreover, RO elements developed at DW&PS Jubail Operations have the potential to minimize the oil requirement to distill water in the region by around 10MM barrels per year. This is similar to minimizing the greenhouse gas emissions from 900,000 passenger vehicles driven per year.

The company’s investment in the DW&PS Jubail Operations is in sync with its continued activities at the Dow Middle East Research and Development Center at King Abdullah University of Science and Technology (KAUST). Here Dow conducts research on RO solutions in combination with ultrafiltration pretreatment for seawater desalination.

Dow currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the basic materials sector include Koninklijke DSM N.V. RDSMY, Daqo New Energy Corp. DQ and Flexible Solutions International Inc. FSI. While Koninklijke and Daqo New Energy sport a Zacks Rank #1 (Strong Buy), Flexible Solutions carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
DOW CHEMICAL (DOW): Free Stock Analysis Report
 
KONINKLIJKE DSM (RDSMY): Free Stock Analysis Report
 
DAQO NEW ENERGY (DQ): Free Stock Analysis Report
 
FLEXIBLE SOLTNS (FSI): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research