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FINANCIAL NEWS
Saudi Aramco, US Dow Chemical ink USD20b chemical plant deal
09 Oct 2011
(MENAFN) Saudi Arabian Oil Co. (Aramco), said that it inked a USD20 billion deal with US Dow Chemical Co. in order to establish a chemical plant in Saudi Arabia, reported Associated Press.
Aramco added that the plant, which would be one of the world’s biggest plants of this kind, would start its output in 2015, moreover, the two companies’ joint venture, Sadara Chemical Co., would be located in Jubail Industrial City.
The company added that Sadara Chemical’s annual revenue would be expected to reach USD10 billion within a few years of operation, on the other hand, the two firms would invest USD12 billion together in the joint venture, whereas a share of Sadara would be sold to shareholders in a public offering in 2013 or 2014.
It is worth noting that the plant will include 26 manufacturing units. It will produce chemicals and plastics for the energy, transportation and consumer products industries and its annual capacity would reach 3.3 million tons once completed.
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