Sadara

Sadara is not just another project; it is the cornerstone of our downstream strategy to become a leading global integrated energy and chemicals enterprise, continuously increasing the value we deliver from the Kingdom’s hydrocarbon resources.

The world’s best partnerships are those in which partners share a vision and complement each other’s strengths to produce something that is truly transformative and extraordinary. That’s what happened when we created our powerful partnership with The Dow Chemical Company.

We chose to partner with Dow because of its technical competence in producing high volumes of speciality chemicals. This capability, combined with our refining expertise and ability to produce and leverage high volumes of versatile feedstocks, made the prospect of joining forces very attractive. Both leaders in our respective industries, we came together through our shared values and vision to create a chemicals production facility that is unrivalled in the industry. The result was the Sadara Chemical Company.

Leading on the world stage

The name Sadara means ‘in the lead’ in Arabic. It was chosen to reflect our quest for progressive leadership, superior performance, and our commitment to becoming the global leader in petrochemicals production. Sadara’s location, scale, configuration, and product slate would make it a first of its kind in the region and the industry. It would also enable further integration between our upstream and downstream operations and enable us to significantly increase our product portfolio and enter the specialty chemicals segment with a compelling offer for customers.

In 2007, we began formulating plans with Dow to build a new, world-scale chemicals complex.

Our proven ability to engineer and bring to completion extreme engineering projects has enabled the growth of our company to become the world’s unprecedented upstream production powerhouse.

We applied that skillset to build Sadara — the world’s largest integrated chemicals complex ever completed in a single phase — and established by the largest foreign direct investment in the Saudi petrochemicals industry.

In 2011, construction began on the $20-billion Sadara mega project. Located in Jubail Industrial City II on the east coast of Saudi Arabia, the site was chosen because of its strategic access to growing chemicals markets in the region and in Asia.

Plans for Sadara featured 26 integrated world-scale manufacturing plants that could produce more than three million tons of performance plastics and high-value chemicals per year. Of the 26 plants, 14 would be capable of producing specialty chemical products that have never been produced in the Kingdom before.

At Aramco, we know our greatest opportunities for growth and diversification come from an innovative approach to maximizing our resources. So we aim to create extra value from every hydrocarbon molecule we produce through refining and chemical production.

As a result, we generate new value streams for our company, sustainable value for our partners, and exceptional products for our customers in the Kingdom and the rest of the world. 

A pioneering first

In 2016, Sadara marked a historic landmark with the startup of its mixed feed steam cracker, making it the first chemicals facility in the GCC countries to crack naphtha. The cracker, which breaks ethane and naphtha to form new molecules, including ethylene and propylene, enables the production of a diversified range of plastics and chemical products designed to meet the rigorous standards of sectors such as advanced packaging, construction, electronics, furniture, and the automobile industry.  

In another first for the Gulf region, Sadara produces toluene diisocyanate (TDI). TDI 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.

Sadara at a glance

• Largest chemical complex ever built in a single phase
• Ambitious human capital development
• Sadara has 4300+ employees 
• 2,000 undertook our intensive, technology centric, on-the-job training
• Specialty chemical company — first to crack naphtha in the GCC — with differentiated product slate
• Largest project financing in the Middle East

Sadara’s full value will be seen in an economic ripple effect of industrial clusters, value parks, and the development of the knowledge-based research, engineering, and service firms to support them.

While Sadara itself currently employs more than 4,000 people, it is expected to also create economic opportunities in associated manufacturing and service businesses that will generate additional jobs in the Jubail area.

Another powerful partnership, this time between Sadara and the Royal Commission for Jubail and Yanbu’, has given us the ability to build the PlasChem conversion park — one of the keys to realizing the full value of the Sadara complex.

The 12-square kilometer PlasChem park site in Jubail Industrial City II is located next to Sadara’s new manufacturing complex. It will be devoted exclusively to chemical and conversion industries that make direct or indirect use of Sadara’s products, as well as raw materials from other suppliers. The site will have two main sections: the Chemical Park and the Conversion Park.

By offering the advantages of easy access to Sadara’s highly differentiated chemical products and the strong industrial and regulatory infrastructure in Jubail, PlasChem provides the ability to convert feedstock into high-value finished products. 

The Sadara Chemical Company represents what is possible when two partners come together to create a vehicle for generating more value for their customers, partners, and their respective companies. Sadara stands as a tangible example of the power of vision and collaboration.