Commissioning of its last plant, the region’s first isocyanates
facility, marks milestone achievement for the massive chemicals
complex
Sadara Chemical Company (Sadara), a joint venture between Saudi
Aramco and The Dow Chemical Company, today celebrates the
commissioning of the last of its 26 plants – an isocyanates section
currently producing crude quantities of toluene di isocyanate (TDI)
and other specialty chemicals.
The landmark commissioning milestone was celebrated in the
presence of Saudi Arabia’s Minister of Energy, Industry and Mineral
Resources and Saudi Aramco Chairman, His Excellency Khalid A.
Al-Falih; Dow Chairman and CEO Andrew Liveris; and Ahmad Saadi,
Chairman of Sadara and Saudi Aramco Senior Vice President of
Technical Services at the Sadara complex in Jubail Industrial City
II.
A first for the Gulf region, the TDI section is mainly used in
the production of flexible polyurethane foam for furniture,
mattresses, cushioning and car seats. TDI also has a variety of
industrial uses, such as coatings, adhesives, sealants, specialty
foams and other products.
The TDI section consists of three integrated units producing di
nitro toluene (DNT), toluene di amine (TDA), and toluene di
isocyanate (TDI). The DNT and TDA units started operations in
April, and the TDI unit began crude production this week.
The isocyanates envelope also includes an unprecedented
integrated facility producing PMDI or polymeric methylene di phenyl
di isocyanate. The PMDI Plant began producing commercial quantities
in early June.
Additionally, Sadara is producing another important polyurethane
precursor – polyether polyols. The company’s Polyols Plant came
on-stream in late July.
The world’s largest integrated chemicals complex ever built in a
single phase, and established by the largest foreign direct
investment in the Saudi petrochemicals industry, Sadara has been
bringing its chemical plants on-stream in a carefully planned
sequence and will produce more than three million tons of
high-value performance plastics and specialty chemical products
annually. Sadara’s mixed feed cracker, the heart of Sadara’s
operations, started up in August 2016, cracking ethane gas and
naphtha liquid feedstock to produce chemicals for the site’s other
facilities. Sadara’s four polyethylene production units came
on-line between late 2015 and early 2017.
Thirty-two polyethylene products have been qualified to-date,
serving more than 600 customers in 70 countries. An additional four
new polyethylene products will be added to Sadara’s capabilities by
year-end.
Sadara’s specialty chemicals portfolio includes facilities that
manufacture propylene oxide, propylene glycol, ethylene oxide,
glycol ethers, amines, isocyanates and polyether polyols.
Al-Falih said, “Sadara’s commissioning positions the company to
fully deliver its promise as a major catalyst for Saudi Arabia’s
economic future – a promise that will be felt in human terms.
“Sadara’s slate of high-value chemicals, including many firsts
for the Kingdom and the region, will create the quality
performance, value-added and plastics products that support a
higher living standard around the world, especially in the emerging
Asia Pacific and Middle Eastern markets that will drive two-thirds
of global petrochemical demand over the next decade.
“In addition to transforming the Kingdom from a consumer and
importer to a global exporter, Sadara will create new value chains
and technologies that will attract foreign and domestic investment,
spurring new sectors and entrepreneurial business, and creating
thousands of manufacturing jobs for Saudis. In this way, Sadara is
perfectly aligned with the Kingdom’s national transformation goals
as expressed in Vision 2030. By driving non-oil sector growth,
innovation and better-life opportunities, Sadara will deliver
progress and prosperity now, and for generations to come.”
Liveris said, “Today marks a pivotal moment for this
game-changing joint venture – for Dow, our partners at Saudi Aramco
and for the Kingdom of Saudi Arabia – delivering market-driven
solutions that have never before been manufactured in the Kingdom
and supporting the diversification of its economy in line with
Vision 2030. Dow has been a strategic partner in Saudi Arabia for
more than four decades and is the Kingdom’s largest foreign
investor. Commissioning of Sadara’s final plant marks a pivotal
moment in the history of this landmark public and private
partnership that advances Dow’s growth strategy and will help
transform the Kingdom’s rich resources into solutions for the world
through a thriving manufacturing sector.”
Saudi Aramco President and CEO Amin H. Nasser called Sadara a
major milestone in Saudi Aramco’s strategic intent to become the
world’s foremost integrated energy and chemicals company.
“Sadara is a flagship chemicals project that significantly
advances our ability to derive the maximum value from every
hydrocarbon molecule, and to participate more broadly across the
petroleum value chain,” Nasser said.
“The closer integration of Saudi Aramco’s refining networks with
chemical production brings greater resilience and robustness to our
portfolio. Using raw materials provided by SABIC, SATORP and Sadara
itself, the complex will transform raw materials and feedstocks
into high-value products – a position of strength that drives
business growth. Our strategy to make chemicals a top-tier global
business will have a multiplier effect on jobs, industries and
technologies, especially through industrial parks as a base for
conversion industries making plastics and plastic products from
petrochemicals. As a creator of entirely new products and
industries, Sadara is a transformational company that will benefit
all stakeholders.”
Sadara Chairman Ahmad Saadi said: “Sadara has come a long way
from the shareholder agreement signing six years ago, to the
official inauguration in November. Yet the commissioning of all our
plants is not the finish-line, but Sadara’s start in meeting rising
demand for high-quality chemicals, plastics and performance
products, especially in emerging markets, and stimulating Saudi
Arabia’s industrial growth across the automotive, construction,
manufacturing, pharmaceuticals and consumer goods sectors.”
The Sadara Chairman added: “The future will be demanding, but
our determination and commitment are more than equal to the task.
Knowing Sadara’s ‘can do’ attitude, I’m confident that we will
exceed the expectations that our shareholders have set for us.”
Strategically located to benefit from competitive feedstocks,
Sadara will serve the needs of Dow customers across the Asia
Pacific, India, the Middle East, Africa and Central and Eastern
Europe.
To date, Sadara has more than 4,100 employees, the majority of
whom are Saudis. Almost 2,000 of these employees have completed
intensive, technology-centric, on-the-job training (OJT) programs
at various Saudi Aramco and Dow sites in Saudi Arabia and around
the world for advanced chemicals production technologies knowledge.
The Sadara OJT program is one of the largest and most sophisticated
technological training programs ever undertaken by any company in
Saudi Arabia.
In addition, the PlasChem Park, a world-class industrial park
for chemical and conversion industries created by a collaboration
between Sadara and the Royal Commission for Jubail and Yanbu, is
expected to attract quality investments valued at 20 billion Saudi
Riyals, and to create thousands of direct and indirect jobs.
About Dow
Dow (NYSE: 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 material,
polymer, chemical and biological science to help address many of
the world's most challenging problems, such as the need for fresh
food, safer and more sustainable transportation, clean water,
energy efficiency, more durable infrastructure, and increasing
agricultural productivity. Dow's integrated, market-driven
portfolio delivers a broad range of technology-based products and
solutions to customers in 175 countries and in high-growth sectors
such as packaging, infrastructure, transportation, consumer care,
electronics, and agriculture. In 2016, Dow had annual sales of $48
billion and employed approximately 56,000 people worldwide. The
Company's more than 7,000 product families are manufactured at 189
sites in 34 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.
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