Joint Venture Chemicals Complex Dow and Saudi Aramco Sign Joint Venture Agreement for Sadara Chemical Complex
The planned joint venture of Dow and Saudi Aramco takes form: recently, officials of both companies signed a shareholders agreement for the jointly–operated chemical complex.
Midland, Michigan/USA & Dhahran/Saudi Arabia – It's the next step for Saudi Aramco and Dow's union of giants: Aramco President and CEO Khalid A. Al-Falih and Dow's Chairman and CEO Andrew N. Liveris recently signed the Joint Venture (JV) Shareholders’ Agreement for the planned Sadara Chemical Company. Dow states this event to be a major step towards the Sadara project: consisting of 26 manufacturing units, several of which constitute “mega projects” in themselves, Sadara will be the largest ever integrated chemicals facility to be built in a single phase. Site preparations in Saudi Arabia have already begun.
“Sadara is an extraordinary and unique venture that will build upon the strengths of both Dow and Saudi Aramco to deliver the diversified and specialty materials and chemicals needed to drive growth in the entire region and beyond," said Andrew Liveris, Dow’s Chairman and Chief Executive Officer. “This premier partnership is truly unprecedented and is very well positioned to bring value creation on every front; transforming the Saudi economy, as well as the entire chemical industry, at the same time. This is a great moment for Dow, our partner Saudi Aramco, and for the people of Saudi Arabia. I congratulate everyone who has worked so hard to see this vision become a reality,” Liveris added.
Largest Ever Integrated Chemicals Facility to Be Built in a Single Phase
The partner companies believe that Sadara will deliver annual revenues of approximately US $10 billion within a few years of operation while contributing significantly to Saudi Arabia’s industrial diversification. Saudi officials expect the plant to broaden the country's chemical portfolio, making Saudi Arabia a major player in chemicals and petrochemicals, but also a hub for future downstream manufacturing.
Saudi Aramco President and Chief Executive Officer Al-Falih said: “Sadara is a milestone for Saudi Aramco and a cornerstone of our transformational downstream growth strategy, which will add further value to our significant petroleum value chain. As the world’s largest integrated and most reliable supplier of energy and petroleum-based derivative products, our strengths complement those of Dow, the world’s foremost chemicals company with a global track record and unique suite of chemicals technology."
“I am confident that Sadara will be a game-changer in the Kingdom’s petrochemical industry as it has all the needed ingredients for success. It is a unique partnership that will be a success story for generations to come. We are looking forward to Sadara being an enabler of further economic development, entrepreneurial and employment opportunities in Saudi Arabia,” Al-Falih added.