Dow Chemical has announced it will sell a majority of the production from Sadara Chemical Co.
US-based Dow said the agreement will help it in fast-growing regions including Asia Pacific markets, Central and Eastern Europe, Africa and India.
Sadara will market the products itself in certain Middle Eastern nations, including Saudi Arabia.
The joint venture will make a variety of chemicals, including polyethylene, polyolefin elastomers, and polyurethanes. The first production units are scheduled to come online in 2015, with all units running by 2016.
“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,” Dow chairman and CEO Andrew Liveris said in a news release.
Within a few years of becoming fully operational, Sadara is projected to deliver annual revenues of approximately $10bn .
