MIDLAND, MICH. (July 25, 9:55 a.m. ET) — Dow Chemical Co. has made another blockbuster move, this time announcing plans to build a massive plastics and chemicals complex in Jubail, Saudi Arabia, in a partnership with Saudi Arabian Oil Co.
The complex will include 26 units and will have annual capacity of almost 7 billion pounds of plastics and chemicals products, including low and linear low density polyethylene, elastomers and polyurethanes, officials with both companies said in a July 25 news release.
The joint venture between Midland, Mich.-based Dow and state-owned Saudi Aramco of Riyadh, Saudi Arabia, will operate as Sadara Chemical Co. Construction of the complex will begin this year, with the first production units expected to come online in the second half of 2015.
Full production is scheduled for 2016 at the site, which is expected to generate annual revenues of about $10 billion. Total investment in the project – which will create thousands of new jobs – is estimated at $20 billion.
The announcement “is outstanding proof of Dow's ongoing commitment to our growth strategy,” Dow Chairman and CEO Andrew Liveris said in the release. “This premier partnership is the right economic ownership model with the right partner.”
Saudi Aramco President and CEO Khalid Al-Falih added that the project “will play a key role in (Saudi Arabia's industrial and economic diversification.”
The announcement comes a week after Dow announced a massive bioplastics project in Brazil in conjunction with Japanese conglomerate Mitsui & Co. Ltd.
Dow ranks as one of the world's largest plastics and chemicals maker. Saudi Aramco is one of the world's largest suppliers of oil and natural gas.