Saudi Arabia: Feedstock for Speciality Chemicals Sadara to Supply German-Saudi JV with Ethylene Oxide and Propylene Oxide
Sadara has signed an agreement to supply Sadig-Ilco, a new Saudi-German joint venture that produces various specialty chemicals based on Ethylene Oxide (EO) and Propylene Oxide (PO).
Jubail/Saudi Arabia — Under the terms of the supply agreement, Sadig-Ilco’s new Plaschem Park facility will purchase EO and PO from Sadara through the EO and PO pipelines that are being established by the Saudi group. Using these products as feedstock, the company will manufacture a range of specialty chemicals, some of which will be produced for the first time in the Kingdom of Saudi Arabia. This will further enable the production of market-ready products in several areas, including coatings and adhesives, personal care products and many other industrial applications.
Commenting on the supply agreement, Mohammad Alazzaz, Director of Value Park for Sadara, highlighted the investment opportunities available with the new value chains being produced by the Sadara Chemical Complex, saying, that the specialty chemicals produced by the JV will replace imports and encourage development of new downstream specialty industries.
Eng. Ahmad Alubaid, Managing Director, Sadig Industries, highlighted that the EO/PO project is part of the company's third generation project line-up, with an investment of approximately $ 40 million.
Plaschem Park is a 12 km2 industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries. It is a key element differentiating Sadara from other petrochemical, chemical and plastics manufacturing projects in Saudi Arabia. There are currently two downstream investments operating in Jubail Industrial City II and several existing investors in the Plaschem Park will conclude their planned project engineering activities by early 2018 with ground-breaking activities set to take place in the third quarter of 2018.