Sadara Chemical Company officially formed
December 1, 2011
Saudi Aramco and Dow Chemical Company announced on Monday the official formation of the Sadara Chemical Company, a joint venture between the two organizations. “Sadara is poised to become a significant contributor for Saudi Aramco’s transformational downstream growth strategy,” said Khalid A. Al-Falih, the President and CEO of Saudi Aramco. “I’m pleased to see that this game-changing enterprise has now become a reality.” He added, “I am confident that Sadara will be a success story for many generations to come, and this unique partnership will help foster downstream industries and support industrial diversification that adds significant value to the Kingdom’s hydrocarbon resources.”
Andrew Liveris, the Chairman and CEO of Dow Chemical, commented, “Today’s announcements mark another exciting and significant step forward for Sadara as it fulfills its commitment to building and operating a world scale, fully integrated chemicals complex in Jubail Industrial City.”
The first of Sadara’s production units are expected to begin running in the second half of 2015, while all units will come on line in 2016. Within a few years of opening, the company is predicted to deliver annual revenues of approximately $10 billion. Combining Dow’s advanced technology and Saudi Aramco’s project management and execution capabilities, Sadara will produce a wide range of products, including Polyurethanes (isocyanates, polyether polyols), Propylene Glycol, Elastomers, Linear Low Density Polyethylene, Low Density Polyethylene, Glycol Ethers and Amines. Sadara will market the products domestically and in the Middle East, while Dow will sell on the company’s behalf to the international market.
Sadara’s Board of Directors and its senior officers were also announced. Abdullatif A. Al-Othman, Saudi Aramco’s Senior Vice President for Engineering and Project Management has been appointed Board Chairman, while James D. McIlvenny, Dow Senior Vice President, will serve as Deputy Chairman.