Sadara Chemical Company will be a joint venture of Dow and the Saudi Aramco. The Boards of Directors of both companies have approved the formation of a joint venture to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia.
The construction is said to begin immediately and the first production units will come on line in the second half of 2015. All units are expected to be up and running in 2016. Once operational, Sadara is expected to deliver annual revenues of approximately $10 billion.
Total investment for the project, including third party investments, will be approximately $20 billion. Sadara will become an equal joint venture between Saudi Aramco and Dow after an initial public offering. In addition to equity from the partners, Export Credit Agencies and financial institutions will provide project financing to Sadara.