Sadara Logo

Sadara Chemical Company (Sadara), a joint venture formed in 2011 between Dow and Saudi Arabian Oil Company (Saudi Aramco), continued to advance in 2012. When completed, Sadara’s world-scale operations, supported by strong backintegration to competitive feedstocks, will be a key enabler of Dow’s strategy to drive long-term profitable growth in its downstream, innovation-driven businesses and in fastgrowing regions.

Capitalizing on rapidly expanding markets in energy, transportation, infrastructure and consumer products, Sadara is expected to deliver high-margin growth for decades to come. It is anticipated that the joint venture will bring:

  • Estimated to deliver 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
  • Positive cash flow to Dow within five years of start-up

Encompassing 26 manufacturing plants, the integrated complex under construction in Jubail Industrial City II, Kingdom of Saudi Arabia, will possess flexible cracking capabilities and produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. Major product families include amines, glycol ethers, isocyanates, polyether polyols, propylene glycol, polyethylene and polyolefin elastomers. Sadara’s first production units will come on line in the second half of 2015, and all units are expected to be up and running in 2016.

Marketing Leadership Drives Dow Geographic Growth

Through a set of agreements signed in 2012, Dow will market and sell the majority of products produced by Sadara. Dow will leverage its global marketing expertise, strong brand recognition and well-established market channels, along with Sadara’s strategic, well-positioned location, to bring high-value products to new and existing customers in fastgrowing regions.

More than half of the products Sadara offers will be targeted for expanding Asia Pacific markets, while the majority of the remainder will be sold in other key growth countries in Central and Eastern Europe, Africa and India. The expected regional volume split for Dow’s marketing effort is:

  • Asia Pacific: ~60 percent
  • Middle East and Africa: ~15 percent
  • Europe: ~15 percent
  • Other: ~10 percent

Sadara Advanced Manufacturing Hub Leverages Dow Technology and Training

Construction at the Sadara state-of-the-art complex began in 2011 and continues on schedule for initial start-up in the second half of 2015. Sadara will utilize several of Dow’s industry leading process technologies, as well as Dow manufacturing and engineering work processes and tools, to establish an efficient and reliable operation to manufacture products that meet stringent quality specifications and the needs of customers.

To help ensure effective implementation of Dow technologies and environment, health and safety practices and standards, Dow is conducting an on-the-job training (OJT) program at its own manufacturing sites around the world for Sadara employees. Up to 900 Sadara employees will participate in training at Dow sites where specific manufacturing processes and methodologies are in use. Dow trainers have prepared extensively to help Sadara employees become skilled in technologies and best practices needed for Sadara’s safe and successful start-up and

Formed: 2011
Ownership: Dow: 35%, Saudi Aramco: 65%

Dow and Saudi Aramco shares will be equal following introduction of a third investor (PublicCo) formed for purposes of holding shares in Sadara and conducting an initial public offering (IPO) through the Saudi Capital Market Authority
Headquarters: Dhahran, Saudi Arabia
Production Facilities: 26 manufacturing units being built in Jubail Industrial City II, Eastern Province, Saudi Arabia
Products: Ethylene, propylene oxide, propylene, benzene, toluene, pygas, polyethylene, polyurethanes (isocyanates, polyether polyols), propylene glycol, butyl glycol etherers, amines, polyolefin elastomers
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)

For more infomation, visit the Sadara website.

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.

Recent News

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