Sadara Joint Venture Now 94 Percent Complete – On Track for First Production Units to Start up in 2015
By Business Wire News
By Business Wire News
Sadara Chemical Company (Sadara) is progressing on-budget and on-schedule in alignment with Dow’s strategy to enable cost-advantaged growth in fast-growing regions such as Asia Pacific, the Middle East, Africa, and Eastern and Central Europe. Sadara is a joint venture developed by The Dow Chemical Company (NYSE: DOW) and Saudi Arabian Oil Company (Saudi Aramco).
“Sadara is a cornerstone of Dow’s strategy to leverage our technology and scale as we shift our portfolio toward higher-growth businesses with integration to cost-advantaged feedstocks,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “Dow’s investment in Sadara represents our focus and commitment to expand participation in attractive markets as we deliver consistent, long-term earnings growth, a key component of our strategy. Sadara is perfectly positioned to drive this growth in developing markets, where we have strong value drivers.”
Significant progress has been made in starting up key infrastructure and utility systems. Overall construction of the manufacturing facility is now approximately 94 percent complete with 47,000 personnel on site in Jubail Industrial City II, Saudi Arabia. The commissioning and startup of key utilities infrastructure is underway and the process for first production units will begin in the second half of the year with initial polyethylene production beginning near the end of 2015. Full site operations remains on track for the end of 2016.
Sadara’s 26 manufacturing assets are scheduled for a sequenced start-up process, beginning with the polyolefins envelope to maximize timing in the ethylene cycle, followed by ethylene oxide/propylene oxide and their derivatives, with the polyurethanes portfolio in the final phase.
Customer excitement is increasing as Dow businesses actively prepare to market and sell the majority of products produced by Sadara Chemical Company via agreements with the joint venture, to support growth in key markets such as packaging, construction, electronics, furniture and bedding, automotive and transportation.
Progress also continues as Dow works with its customers to attract downstream investments to the advanced manufacturing value park adjacent to Sadara, PlasChem Park, in support of a diversified Saudi economy and job growth in the region.
Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow’s integrated, market driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high-growth sectors such as packaging, electronics, water, coatings and agriculture. In 2014, Dow had annual sales of more than $58 billion and employed approximately 53,000 people worldwide. The Company’s more than 6,000 product families are manufactured at 201 sites in 35 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.
Note: The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company’s operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company’s expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
®TM Trademark of The Dow Chemical Company (“Dow”) or an affiliated company of Dow
The Dow Chemical Company
Rachelle Schikorra, +1 (989) 638-4090