A plastics hub planned for King Abdullah Economic City (KAEC), north of Jeddah, will have PolymerOhio as its inspiration. An MoU has been signed in which PolymerOhio will collaborate in the development of KAEC Plastics Valley, as the specialised zone is called.
Emaar, The Economic City (Emaar.E.C), the Tadawul-listed company developing KAEC, signed the MoU with StrateSphere Enterprises LLC in collaboration with PolymerOhio Inc and the Saudi Arabian General Investment Authority (Sagia).
“Under the agreement, StrateSphere and PolymerOhio will pursue the development of KAEC Plastics Valley in association with Emaar.E.C and Sagia,” a KAEC statement said.  StrateSphere serves as an enabler and a vested-interest JV partner for SMEs operating in developed markets like the USA.
PolymerOhio is a networking group committed to the global competitiveness and growth of Ohio’s polymer industry. Its members include more than 2,700 Ohio polymer companies, leading polymer academic institutions, economic development agencies, and service providers. Ohio is a leader in the global polymer industry.
The statement said the goal behind the MoU was “to position KAEC Plastics Valley as a global center of excellence in the plastics sector like Ohio.”
Saudi King Abdullah bin AbdulAziz Al Saud unveiled the KAEC Plastics Valley, a key component of the Industrial Zone, during his recent tour of the mega-project.
Fahd Al-Rasheed, CEO, Emaar.E.C, and Tariq Farwana, managing director of StrateSphere Enterprises, signed the agreement in Jeddah, in the presence of Sami Al Halabi, acting executive director – commercial, Emaar.E.C; and other Emaar.E.C officials.
The details of the current collaboration with StrateSphere and PolymerOhio will be announced during the Global Competitiveness Forum to be held in Riyadh in January 2009. In the meantime, Emaar.E.C will undertake strategic planning to identify the various features of the KAEC Plastics Valley.
Al-Rasheed said: “The twinning memorandum of understanding will ensure that the knowledge base of Ohio’s plastic manufacturers is seamlessly transferred to KAEC plastics industries thus creating a parallel hub for the industry. The association is doubly significant given the advances that PolymerOhio has made in sustainable thinking and strategies for the plastics industry. These best practices will serve as a model for KAEC to develop the Plastics Valley.”
Al Halabi said: “The agreement comes as an essential step in the development of the Industrial Zone within KAEC.”
He added that the objective of the KAEC Plastics Valley was to position KAEC as the regional hub for the fast-growing plastics industry by employing sustainable growth technologies. Several plastics industries are expected to set base in the Plastics Valley cluster shortly with investments expected from several countries across the world.”
 Farwana explained: “KAEC is at the forefront in ushering in a new era of industrial growth in the kingdom, and the partnership with PolymerOhio will ensure that the project has a truly world-class polymer industry. This will act as a hub in attracting investments from across the region to KAEC Plastics Valley.”
KAEC is the single largest private sector development project in the region and has six zones: the Sea Port, Industrial Zone, Central Business District, Educational Zone, Resort District and Residential Communities. The first phase of the project including phases of the Industrial Zone, Sea Port and Residential Communities has been launched to strong investor response. Work on the project is currently ongoing at an accelerated pace.
Emaar.E.C has a share capital of SR8.5 billion consisting of 850 million shares of nominal value SR10 each. Thirty per cent of the equity, worth SR2.55 billion, was offered for public subscription.
Emaar.E.C leads the master-planning and development of the 168 million sq m King Abdullah Economic City, a project being built off the Red Sea in the north of Jeddah. Sagia, the body responsible for investments into the kingdom, is the prime facilitator for KAEC.