Dow Chemical agrees to market, sell products from Saudi Sadara venture

Dow Chemical on Tuesday announced an agreement under which it will market and sell the majority of products produced by Sadara Chemical, Dow’s joint venture with Saudi Aramco.

Dow says it will leverage its global marketing experience and world-class operations to bring Sadara’s 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 Sadara’s 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 Dow’s 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 polyolefin elastomers.

“Sadara’s 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.

Sadara’s first production units will come on-line in 2015, and all units are expected to be up and running in 2016.

Within a few years of becoming fully operational, Sadara is projected to deliver annual revenues of approximately $10 billion.

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