Dow Chemical has announced that it has entered a shareholders’ agreement with Saudi Aramco for the Sadara Chemical joint venture (JV) in Saudi Arabia. The agreement represents advancement in the Sadara JV complex, which will include 26 manufacturing units. Dow and the Saudi Aramco JV complex will become one of the largest integrated chemical facilities in the world.
Chairman and CEO of Dow, Andrew Liveris stated that the JV will reinforce the capabilities of Saudi Aramco and Dow to deliver a broad range of chemicals and specialty materials for growth in the Saudi Arabia region and others. It is anticipated that Sadara Chemical will provide annual revenues of about $10 billion within a few years after the operation commences. The JV will soon turn into a strategic plastics and chemicals producer and also a hub for the upcoming downstream manufacturing.
The partnership will combine the outstanding project management and implementation capabilities of Saudi Aramco with Dow’s expertise in advanced product technologies. Sadara manufacturing units will produce a variety of products, including amines, glycol ethers, low density polyethylene, linear low density polyethylene, elastomers, propylene glycol, propylene oxide and polyurethanes such as isocyanates and polyether polyols.
Dow and Saudi Aramco JV will sell the products within eight countries, including the Kingdom of Saudi Arabia. Dow will use its global marketing skills to market products to the rest of the world. First production units of the Sadara JV complex are expected to commence operation in 2015 and the entire manufacturing units are expected to begin functioning in 2016.
Source: http://www.dow.com/