Saudi Arabia’s Sadara starts up first plant at Jubail complex

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SINGAPORE (ICIS)–Sadara Chemical started up a linear low density polyethylene (LLDPE) plant at its Jubail complex in Saudi Arabia on 7 December, the company’s fully owned subsidiary Sadara Basic Services Co (SBSC) said on Tuesday.

“The plant is designed to produce 375,000 [tonnes/year] of products used in specialty applications, such as the manufacture of food grade plastics, industrial and consumer packaging and health and hygiene films,” the company said in a filing to the Saudi Stock Exchange.

The plant is expected to produce LLDPE using the proprietary technology of US’ Dow Chemical. It is the first of the 26 world-scale plants that are being built in the Sadara complex located in Jubail Industrial City II.

“Construction of the Sadara complex reached 97% completion in November 2015, and commissioning of the completed units is ongoing,” SBSC said.

SBSC is a joint stock company set up for the purpose of raising funds through a flotation of “sukuk” or bond on behalf of Sadara Chemical.

Sadara’s integrated complex in Jubail is expected to produce over 3m tonnes/year of chemical and plastic products, and will be the first in the Middle East to use refinery liquids like naphtha as feedstock.

The 26 manufacturing assets at the site are scheduled for a sequenced start-up process, beginning with polyolefins followed by ethylene oxide/propylene oxide (EO/PO) and their derivatives, with the polyurethanes (PU) portfolio in the final phase.

Sadara Chemical is a joint venture between Saudi Aramco and Dow Chemical.

Additional reporting by Pearl Bantillo