Saudi Aramco and the Dow Chemical Company, the leading specialty materials company in the world, have formed the Sadara Chemical Company (Sadara), a joint venture that will construct, own and operate a world-scale integrated chemicals complex in Jubail Industrial City II, in the Eastern Province of the Kingdom of Saudi Arabia.

"Investing at the scale of Sadara, and with such an advanced product slate, is also consistent with our intent to become the world’s leading integrated energy company by the year 2020."

Khalid A. Al-Falih

President and CEO, Saudi Aramco

Once complete, the complex will represent the largest petrochemical facility ever built in one single phase. Sadara and the adjoining conversion parks will establish a world-scale manufacturing footprint that delivers a full range of value-added, performance products destined for the emerging markets of Asia, the Middle East and Africa.

By the end of 2011, the front-end engineering development effort was completed. Major contracts have been awarded for site preparation, waste treatment, and power and water services. More than 600 Saudi nationals have been hired and assigned to training programs in operating plants in Europe, the U.S., and other locations.

During 2012, work on Sadara made significant progress. Engineering work reached 49 percent completion and construction activities geared up, with almost 7,000 workers on site by year-end. Sadara continues to build its staffing levels and has created job opportunities by hiring more than 1,000 Saudi employees.

Sadara’s Board of Directors met for the first time in December in Houston to approve the first annual operating plan, the capital budget, and management authority.

Sadara and its Products:

Employing best-in-class technologies from Dow,  the Sadara world-scale chemical complex will produce over 3.2 million tons of performance, value-added chemical and plastics products.

Many of Sadara’s products will enable significant development of the conversion industry, support Saudi Arabia's ambition to be a manufacturing hub for downstream industries, and drive growth in many of the industries below:

  • Transportation (automotive parts, maintenance fluids)
  • Construction (pipes, adhesives and sealants)
  • Packaging and containers
  • Consumer goods (foam for furniture and bedding; rigid for appliances)
  • Adhesives and sealants
  • Coatings (for industrial, maintenance and marine applications)
  • Oil and gas (pipeline coatings, sour gas treatment)
  • Electrical and electronics (wire and cable, insulation)

The nearby "Plaschem Park" being developed in conjunction with the Royal Commission for Jubail and Yanbu’ will be available to investors looking to locate their facilities close to Sadara to maximize proximity benefits.

In addition to supporting local demand, the complex's strategic location makes it ideally suited to drive economic growth in fast-paced, emerging markets in Asia, the Middle East, Africa and Eastern Europe.

Value Creation:

  • This joint venture represents a major step forward in the strategies of Saudi Aramco and Dow to drive growth further downstream, in value-added businesses.
  • Customers, particularly those in emerging geographies, such as China, the Middle East, Eastern Europe and Africa, will benefit from a strong supplier with feedstock integration, in-market commercial and supply capabilities, advanced technologies and resources to grow with their demand.
  • The new manufacturing hub will provide needed capacity and will include a world scale cracker that will be able to crack a wide range of feedstocks.
  • The complex will produce and market high-value performance plastics and chemical products, to capture growth in the rapidly growing sectors of energy, transportation and infrastructure, and consumer products.
  • The landmark partnership will bring to life many products that will be made in the Kingdom of Saudi Arabia for the first time. 

Economic Diversification

Sadara will be a relevant and meaningful contributor to the Saudi Arabian economic agenda. As a standalone enterprise, this proposed joint venture would represent the largest foreign direct investment in the Saudi petrochemical industry.

Once operational, Sadara would contribute significantly to the country's industrial diversification by providing additional value chains within both the joint venture and the industrial Plaschem Park. The diversity of the products from Sadara will complement the existing materials available in Jubail-I to attract additional foreign direct investment and further contribute to the diversification of Saudi Arabia's economic base. Ultimately, Sadara 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 industrialization.

Sadara and related investments are expected to generate thousands of direct and indirect employment opportunities.

Corporate Social Responsibility

Sadara will represent a unique alliance between two corporate giants, two companies with shared values and distinguished leadership in their respective industries.

Both Dow and Saudi Aramco are committed to promoting and delivering the highest standards of operational safety and environmental sustainability in all their operations around the world.

Throughout the conceptualization and engineering design stage of the proposed joint venture, project teams from Dow, Saudi Aramco and the project management contractors have all been expected to comply with, and to promote, a positive culture of health and safety. The technologies selected for the proposed joint venture’s integrated chemical complex are among the world's most advanced and energy efficient.

Sadara news brief

Watch a short video news story about the October 8 signing of the Joint Venture Shareholders’ Agreement for the Sadara Chemical Company. Included are excerpts from the remarks made by Saudi Aramco CEO Khalid A. Al-Falih and Dow CEO Andrew N. Liveris.


Sadara slideshow

View photographs of the October 8 Sadara Joint Venture Shareholders’ Agreement signing ceremony.


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