Dow Chemical on Tuesday announced an agreement under which
it will market and sell the majority of products produced by
Sadara Chemical, Dows joint venture with Saudi
Dow says it will leverage its global marketing experience
and world-class operations to bring Sadaras plastics and
specialty chemical products to market in growing regions,
particularly geographies where Dow has strong brand recognition
and well-established market channels.
The company believes the combination of its marketing
leadership with Sadaras strategic, well-positioned
location will strengthen existing customer relationships and
forge new ones in these fast-growing regions.
Nearly half the products Sadara offers will be available in
expanding Asia-Pacific markets, while the majority of the
remainder will be sold in other key countries in Central and
Eastern Europe, Africa and India.
Sadara itself will take the lead in bringing its products to
market in certain Middle Eastern nations, including the Kingdom
of Saudi Arabia.
This marketing agreement - like the Sadara joint
venture as a whole-represents another significant step towards
Dows ever-expanding global reach, advancing our
transformation as we grow with customers locally and
globally, said Andrew N. Liveris, Dow CEO.
This project - the largest of its kind
ever built in a single phase - will literally transform our
industry and the petrochemical sector in Saudi Arabia
by creating an advanced manufacturing hub that provides a
differentiated product slate from a competitive, low-cost
position, he added.
Products covered under the agreement include polyethylene
(PE), propylene oxide, polyether polyols, methylene diphenyl
diisocyanate (MDI) and toluene diisocyanate (TDI) aromatic
isocyanates, propylene glycol, butyl glycol ethers, amines and
Sadaras product slate is targeted to technology-rich sectors like energy,
transportation, electronics, consumer goods and
infrastructure, said Pat Dawson, president of Dow Asia
Pacific. These are industries where Dow has a global
leadership position and can deliver value-added technology.
Sadara is building the complex, which will be comprised of
26 manufacturing units, and will possess flexible cracking
capabilities and produce more than 3 million metric tons of
performance plastics and specialty chemical products.
Sadaras first production units will come on-line in
2015, and all units are expected to be up and running in
Within a few years of becoming fully operational, Sadara is
projected to deliver annual revenues
of approximately $10 billion.