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July 26, 2011 12:00 AM

Dow, Saudi Aramco JV to include PU materials

Utech Staff
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    Midland, Michigan - Dow Chemical Co. is to build a 3-million-tonne capacity integrated chemicals complex in Jubail Industrial City, Saudi Arabia, as part of a joint venture with the Saudi Arabian Oil Co. (Saudi Aramco).

    Dow said the authorisation for the joint venture, called Sadara Chemical Co., comes after an extensive project feasibility study, which began in 2007. Total investment for the project will be about $20 000 million.

    Consisting of 26 manufacturing units, the complex will be one of the world's largest integrated chemical facilities, Dow said in a 25 July announcement. The complex is expected to produce over 3 million tonnes of chemical products and performance plastics, including polyether polyols, isocyanatesand propylene oxide for the polyurethane industry.

    Construction will begin immediately, and the first production units are due to come online in the second half of 2015, with all units expected to be up and running in 2016, according to the announcement.

    "Today's announcement is outstanding proof of Dow's ongoing commitment to our growth strategy," commented Andrew Liveris, Dow ceo. He added that the project would help Dow reach growth areas such as China, the Middle East and Africa.

    Khalid Al-Falih, ceo of Saudi Aramco said, "Many of Sadara's products will be produced for the very first time in Saudi Arabia. This enterprise will play a key role in the Kingdom's industrial and economic diversification while contributing to the creation of thousands of high quality jobs."

    Sadara aims to reach annual revenues of about $1000 million, Dow said, adding that the complex should generate direct and indirect employment opportunities.

    "

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