Sadara Chemical Company (Sadara) is a joint venture (JV) between Dow and Saudi Aramco, one of the leading energy suppliers to the world.
Once complete, the JV complex now under construction will be one of the world's largest integrated chemical facilities and the largest ever built in a single phase. Utilizing many of Dow's industry leading technologies, the complex will possess flexible cracking capabilities and produce more than 3 million metric tons of high value specialty chemical products and performance plastics annually. The joint venture will capitalize on rapidly growing local, regional, and international markets in energy, transportation, infrastructure and consumer products.
The formation of this joint venture is a major step forward in Dow's strategy to drive long-term profitable growth in its downstream, innovation-driven businesses. Dow will leverage its global marketing experience and world-class operations to bring Sadara's high-value performance plastics and specialty chemical products to market in growing regions such as Asia Pacific, the Middle East and Africa, and Eastern Europe. Combining Dow's marketing leadership with Sadara's strategic, well-positioned location will strengthen Dow's existing customer relationships and forge new ones in these fast-growing regions.
The joint venture is projected to deliver estimated EBITDA margins of 35-40 percent and average equity earnings for Dow of approximately $500 million annually during the first 10 years following its start up.
|Ownership:||Dow and Saudi Aramco|
|Production Facilities:||A total of 26 manufacturing units at Jubail Industrial City II, Eastern Province, Saudi Arabia (under construction). First production units are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016.|
|Products:||A wide range of performance products such as polyurethanes (isocyanates, polyether polyols), propylene oxide, propylene glycol, elastomers, linear low density polyethylene, low density polyethylene, glycol ethers and amines.|
|Product Applications:||High-growth end markets such as: transportation (automotive parts, maintenance fluids), construction (pipes, adhesives & sealants), packaging and containers (food and non-food), consumer goods (foam for furniture and bedding; rigid PU foam insulation for appliances), adhesives and sealants, coatings (wide range of coatings for industrial, maintenance and marine applications), oil and gas (pipeline protection & flow assurance, gas treatment), electrical and electronics (wire and cable, insulation)|
Sadara is owned by Dow Saudi Arabia Holding BV, a wholly-owned subsidiary of The Dow Chemical Company, and Performance Chemicals Holding Company, a wholly-owned subsidiary of Saudi Arabian Oil Company.
June 17th, 2013
Main Project Financing Completed for Sadara
October 08, 2012
Dow and Sadara Announce Marketing and Sales Agreement, Focus on Growth Regions
November 28, 2011
Dow & Saudi Aramco Announce Official Formation of Sadara, Board of Directors and Key Officers
October 08, 2011
Saudi Aramco, Dow Sign Sadara JV Shareholders' Agreement
July 25, 2011
Dow and Saudi Aramco Announce Joint Venture to Drive Downstream Growth through World-Scale Chemicals Project