Following an extensive product feasibility study and engineering and design efforts dating back to 2007 – see Plasteurope.com of 18.05.2007 – on 25 July 2011, Dow Chemical (Midland, Michigan / USA; www.dow.com) and state-owned Saudi Aramco (Dhahran; www.saudiaramco.com) officially announced the formation of a new 50:50 joint venture to build and operate a world-scale, integrated chemical complex in Jubail Industrial City / Saudi Arabia. Investment costs, including third-party investments, are expected to reach USD 20 bn.

The new jv will be called Sadara Chemical Company and will comprise 26 manufacturing units with cracking capabilities. Once completed, it is expected to churn out more than 3m t/y of high value-added chemicals and performance plastics. The two companies said construction works would begin immediately, with the first units expected on stream in H2 2015 and the remainder in the course of 2016. Once operational, Sadara is expected to deliver annual revenues of about USD 10 bn.

“Many of Sadara’s products will be manufactured for the very first time in Saudi Arabia,” said Saudi Aramco CEO Khalid Al-Falih. The complex will produce a range of performance products, including polyurethanes, propylene oxide, propylene glycol, elastomers, LDPE, LLDPE, glycol ethers and amines. While Sadara is to market the output in eight nearby countries, Dow will market and sell the complex’s products outside the Middle East.