08 October 2011 23:26 [Source: ICIS news]
HOUSTON (ICIS)--The top executives of Dow Chemical and Saudi Aramco on Saturday signed a shareholder agreement for the $20bn (€15bn) Sadara joint venture in Saudi Arabia.
The project at Jubail Industrial City will be one of the world’s largest integrated chemical facilities and one of the largest built in a single phase, with 26 manufacturing units, the companies said.
Saudi Arabia-based Saudi Aramco and US Dow announced their respective board authorisations to form the JV on 25 July, following a project feasibility study and front-end engineering and design (FEED) effort, which began in 2007.
Dow CEO Andrew Liveris said the partnership is “very well positioned to bring value creation on every front; transforming the Saudi economy, as well as the entire chemical industry, at the same time”.
Saudi Aramco CEO Khalid Al-Falih said the Sadara is a “cornerstone of our transformational downstream growth strategy, which will add further value to our significant petroleum value chain”.
The complex is expected to produce $10bn/year in revenue.
The first production units are expected to come on line in the second half of 2015, the companies said. All units are expected to be up and running in 2016.
The complex will produce products such as polyurethanes (isocyanates, polyether polyols), propylene oxide (PO), propylene glycol (PG), elastomers, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), glycol ethers and amines.
Sadara will market products within a regional zone of eight countries, including Saudi Arabia, the companies said.
Dow will market and sell Sadara products to the rest of the world.
For more on Saudi Aramco and Dow visit ICIS Company Intelligence ?xml:namespace>
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