The Dow Chemical Company (Dow) and Saudi Arabian Oil Company (Saudi Aramco) announced the official formation of Sadara Chemical Company (Sadara), a joint venture between the two companies.
Also announced were Sadara's Board of Directors and senior officers which comprised of eight members, with Abdullatif A. Al-Othman, senior vice president, Engineering and Project Management, Saudi Aramco as Board Chairman and James D. McIlvenny, Dow Senior Vice President, as the Deputy Chairman.
"Today's announcements mark another exciting and significant step forward for Sadara as it fulfills its commitment to building and operating a world scale, fully integrated chemicals complex in Jubail Industrial City," said Andrew Liveris, Dow's Chairman and Chief Executive Officer.
Saudi Aramco President and Chief Executive Officer Khalid Al-Falih said: "Sadara is poised to become a significant contributor for Saudi Aramco's transformational downstream growth strategy. I'm pleased to see that this game-changing enterprise has now become a reality."
World's largest chemical facility
Once complete, the JV complex now being built in Jubail will be one of the world's largest integrated chemical facilities, and the largest ever built in a single phase. First production units are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016.
Sadara is expected to deliver annual revenues of approximately US$10 billion within a few years of operation. The JV and related investments are expected to generate thousands of direct and indirect employment opportunities.
For the JV alone, by the end of 2011, Dow and Saudi Aramco are aiming to recruit hundreds of Saudi nationals for the first batch of technical trainees for competitive and unique manufacturing and engineering training programs.
Performance products
Utilizing Dow's product technologies and Saudi Aramco's project management and execution capabilities, the manufacturing units will produce a wide range of performance products such as Polyurethanes (isocyanates, polyether polyols), Propylene Glycol, Elastomers, Linear Low Density Polyethylene, Low Density Polyethylene, Glycol Ethers and Amines.
Sadara will market products within a regional zone consisting of Middle Eastern countries, including the Kingdom. Dow will leverage its global marketing know-how to market and sell on behalf of Sadara to the rest of the world.
