Sadara venture instrumental for Saudi chemical hub


The US$20 billion joint venture Sadara Chemical Co set up by Dow Chemical and Saudi Aramco is expected to deliver US$10 billion in revenues per annum when completed, officials said following the signing of the agreement.


The Sadara chemical plant being developed by Saudi Arabian Oil Co. and Dow Chemical Co. has received tenders for 50 per cent of its construction, an official for the project's Saudi partner said.

The venture will seek tenders for the rest of the work during the first half of 2012, Abdul Aziz Al Judaimi, Saudi Arabian Oil's vice president for chemicals business, told reporters in Khobar.

Joint venture

Saudi Aramco President Khalid A. Al Falih and Dow Chairman Andrew N. Liveris signed in Dhahran the joint venture shareholders' agreement for the US$20 billion Sadara Chemical Co.

Sadara will contribute significantly to Saudi Arabia's industrial diversification, they said. The planned product portfolio will add value to the kingdom's vast natural resources and complement the existing chemical landscape.


Ultimately, the project will be instrumental in Saudi Arabia's strategy to become not only a strategic chemicals and plastics producer, but also a hub for future downstream manufacturing.

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.


Utilising Dow's 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 oxide, propylene glycol, elastomers, polyethylene, glycol ethers and amines.

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