SADARA
"PlasChem Park" to include automotive cluster / OEM suppliers will be located on-site
 Sadara announces plans for automotive cluster at "PlasChem Park" (Photo: Sadara) |
Sadara Chemical Company (Jubail / Saudi Arabia; www.sadara.com), the joint venture between Dow Chemical (Midland, Michigan / USA; www.dow.com) and Saudi Aramco (Dhahran / Saudi Arabia; www.saudiaramco.com), is making good on its promise to provide direct on-site outlets for polymer production at its massive complex in Jubail Industrial City II. / Saudi Arabia. The company has now signed a cooperation agreement with Saudi National Automobiles Manufacturing Company (SNAM, Riyadh / Saudi Arabia; http://snam.com.sa) to create an automotive hub at its plastics processing complex "PlasChem Park".
Together the chemical and automotive companies plan to explore possibilities for polymer producers in the mammoth Sadara complex to deliver speciality chemicals and plastics directly to Tier 1 and Tier 2 automotive OEMs suppliers working with SNAM. The concept calls for the car assembly plant and the Tier 1, and in some cases Tier 2 or Tier 3 suppliers, to be located adjacent to each other in PlasChem Park, occupying 1m m² of space each. Grouped around the automotive production lines will be facilities such as a press shop, body shop, paint shop and general assembly shop, along with support facilities such as a logistics warehouse, test track and an administration building.
Sadara CEO Ziad Al-Laban said the partnership will help drive the development of an emerging sector within Saudi Arabia’s downstream manufacturing industry. “Our speciality chemicals products can be utilised by third-party investors to make components used in automobile manufacturing. With SNAM on board, we have a catalyst to come in and quickly begin to realise value on their investments,” Al-Laban remarked. SNAM’s CEO, Fahd S. Al-Dohish, added that, in order to create a sustainable automotive industry ecosystem and utilise local resources, the carmaker sought out local automotive-related businesses that could work together with the OEM suppliers farther up the chain.
Amid the boom in polymer production, the Middle East’s oil, petrochemicals and plastics producers up to now have exported much of their output. Investing in plastics processing facilities would deepen the value chain. According to 2014 figures, within the Saudi-dominated Gulf Cooperation Council (GCC), some 90% of all plastics converters were based in Saudi Arabia, and only 10 were considered to be of international status – see Plasteurope.com of 17.02.2015.
The automotive hub will be one of several clusters in the 12 km² processing park and is expected to be the largest. Sadara has said it wants to attract a “diversified mix” of industries to the site, including producers of oil and gas chemicals; construction materials; automotive components; animal feed; paints and coatings; and home and personal care products. The other clusters are to include Hydrocarbon Resin, Ethylene Oxide/Propylene Oxide, Polyurethanes and Plastics.
Sadara said a number of investors have already signed up to locate in or work with companies in PlasChem Park. An ethylene oxide and propylene oxide supply agreement was agreed last year with Energy Chemical Sources Company (ECSC), a joint venture of US oilfield chemicals specialist Halliburton and the government controlled energy holding company of Abu Dhabi, TAQA, which produces oilfield chemicals. Two supply deals have been agreed with E.A. Juffali & Brothers, a Saudi company formerly affiliated with Rohm & Haas, which is now part of Dow. One of them covers MDI for use in polyurethane system house applications.
The Sadara complex is claimed to be the world’s largest to be built in a single phase and the first in the Middle East to use refinery liquids, such as naphtha, as feedstock. Alongside the cracker’s output, polymer production facilities planned for the complex or completed include PE and PP, elastomers and polyurethanes. PlasChem Park is a joint project of Sadara and Saudi Arabia’s Royal Commission for Jubail and Yanbu aimed at attracting downstream investors.
Together the chemical and automotive companies plan to explore possibilities for polymer producers in the mammoth Sadara complex to deliver speciality chemicals and plastics directly to Tier 1 and Tier 2 automotive OEMs suppliers working with SNAM. The concept calls for the car assembly plant and the Tier 1, and in some cases Tier 2 or Tier 3 suppliers, to be located adjacent to each other in PlasChem Park, occupying 1m m² of space each. Grouped around the automotive production lines will be facilities such as a press shop, body shop, paint shop and general assembly shop, along with support facilities such as a logistics warehouse, test track and an administration building.
Sadara CEO Ziad Al-Laban said the partnership will help drive the development of an emerging sector within Saudi Arabia’s downstream manufacturing industry. “Our speciality chemicals products can be utilised by third-party investors to make components used in automobile manufacturing. With SNAM on board, we have a catalyst to come in and quickly begin to realise value on their investments,” Al-Laban remarked. SNAM’s CEO, Fahd S. Al-Dohish, added that, in order to create a sustainable automotive industry ecosystem and utilise local resources, the carmaker sought out local automotive-related businesses that could work together with the OEM suppliers farther up the chain.
Amid the boom in polymer production, the Middle East’s oil, petrochemicals and plastics producers up to now have exported much of their output. Investing in plastics processing facilities would deepen the value chain. According to 2014 figures, within the Saudi-dominated Gulf Cooperation Council (GCC), some 90% of all plastics converters were based in Saudi Arabia, and only 10 were considered to be of international status – see Plasteurope.com of 17.02.2015.
The automotive hub will be one of several clusters in the 12 km² processing park and is expected to be the largest. Sadara has said it wants to attract a “diversified mix” of industries to the site, including producers of oil and gas chemicals; construction materials; automotive components; animal feed; paints and coatings; and home and personal care products. The other clusters are to include Hydrocarbon Resin, Ethylene Oxide/Propylene Oxide, Polyurethanes and Plastics.
Sadara said a number of investors have already signed up to locate in or work with companies in PlasChem Park. An ethylene oxide and propylene oxide supply agreement was agreed last year with Energy Chemical Sources Company (ECSC), a joint venture of US oilfield chemicals specialist Halliburton and the government controlled energy holding company of Abu Dhabi, TAQA, which produces oilfield chemicals. Two supply deals have been agreed with E.A. Juffali & Brothers, a Saudi company formerly affiliated with Rohm & Haas, which is now part of Dow. One of them covers MDI for use in polyurethane system house applications.
The Sadara complex is claimed to be the world’s largest to be built in a single phase and the first in the Middle East to use refinery liquids, such as naphtha, as feedstock. Alongside the cracker’s output, polymer production facilities planned for the complex or completed include PE and PP, elastomers and polyurethanes. PlasChem Park is a joint project of Sadara and Saudi Arabia’s Royal Commission for Jubail and Yanbu aimed at attracting downstream investors.
23.02.2017 Plasteurope.com 974 [236273-0]
Published on 23.02.2017
German version of this article...