JUBAIL INDUSTRIAL CITY, SAUDI ARABIA- Midland, MI-based Dow Chemical Co. and the Saudi Arabian Oil Co. announced earlier today that it is going ahead with four-year-old plans to build a $20-billion chemical plant here. The plant will comprise 26 manufacturing divisions creating products and plastics for the energy, transportation, infrastructure and consumer products industries, to capitalize on emerging markets such as China and the Middle East.
Dow is one of the world’s most well-known chemical companies. The Saudi firm, also known as Saudi Aramco, is owned by the Saudi government. The two firms are forming a venture called the Sadara Chemical Co. The name is an anagram, with “Sa” signifying Saudi Aramco, “d” standing for Dow, and “ara” for Arabia.
The two firms will each contribute about $2.3 billion toward the investment, with another $2.3 billion planned to be raised from a stock offering for Sadara. The venture will use another $13 million of debt for the project, according to a venture statement.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
