25 July 2011 12:47 [Source: ICIS news]
LONDON (ICIS)--US-based Dow Chemical and state oil firm Saudi Aramco have given the final approval to their proposed joint venture project to build and operate a chemicals complex in ?xml:namespace>
The companies' boards of directors have given authorisation for the joint venture, named Sadara Chemical Company, following an extensive project feasibility study and front-end engineering and design (FEED) effort, which began in 2007.
“This project represents a key milestone in Saudi Aramco’s ambitious downstream growth strategy,” said Khalid Al-Falih, president and CEO of Saudi Aramco.
Construction of the facility will begin immediately and the first production units will come on line in the second half of 2015, with all units expected to be up and running in 2016.
The complex will comprise 26 manufacturing units and include a world-scale cracker and production units for polyurethanes (isocyanates, polyether polyols), propylene oxide (PO), propylene glycol, elastomers, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), glycol ethers and amines. It will produce over 3m tonnes/year of high value-added chemical products and performance plastics, Dow Chemical and Saudi Aramco said.
The companies added that once it is operational, Sadara, which will become an equal joint venture between Saudi Aramco and Dow after an initial public offering, is expected to deliver annual revenues of approximately $10bn within a few years.
“Many of Sadara’s products will be produced for the very first time in
“It will enable significant development in the country’s conversion industry, thereby supporting
“[The joint venture] is designed to capture growth in the rapidly growing sectors of energy, transportation and infrastructure, and consumer products by creating a manufacturing hub that will provide a differentiated product slate and an advantaged cost position,” said Andrew Liveris, Dow’s chairman and CEO.
The complex will be the largest ever built in one single phase, the companies added.
($1 = €0.70)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|