A new joint venture project between Saudi Aramco and Dow Chemical, signed on Saturday, is expected to create $10bn in revenues within a few years, officials said.
Sadara Chemical Company will make three million tonnes of chemical products a year, making it the largest joint venture in the kingdom.
It will make chemical products that are new to the Middle East, the company said in a statement.
Sadara, which will be comprised of 26 manufacturing units, will be one of the world's largest integrated chemical facilities, and the largest ever built in one single phase.
Preparation work on the complex site has started with manufacturing units expected to come on line in the second half of 2015. All units are expected to be up and running in 2016, the statement added.
"Sadara is an extraordinary and unique venture that will build upon the strengths of both Dow and Saudi Aramco to deliver the diversified and specialty materials and chemicals needed to drive growth in the entire region and beyond," said Andrew Liveris, Dow's chairman and CEO.
"This premier partnership is truly unprecedented and is very well positioned to bring value creation on every front; transforming the Saudi economy, as well as the entire chemical industry, at the same time."
Sadara is expected to deliver annual revenues of approximately $10 billion within a few years of operation while contributing significantly to Saudi Arabia's industrial diversification.
Saudi Aramco president and CEO Khalid A Al-Falih added: "I am confident that Sadara will be a game-changer in the kingdom's petrochemical industry as it has all the needed ingredients for success."
The joint venture and related investments are expected to generate thousands of jobs, with hundreds of Saudi nationals set to be recruited by the end of 2011.
Sadara's manufacturing units are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016.For all the latest industry news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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