Sector News

Dow Chemical plans to boost stake in Sadara JV to 50 percent

August 29, 2017
Energy & Chemical Value Chain

U.S. company Dow Chemical plans to buy an additional 15 percent stake in its $20 billion joint venture with Saudi Aramco IPO, the companies said on Monday.

Dow, which owns a 35 percent stake in Sadara Chemical, said it had signed a non-binding agreement with Aramco to boost that interest to 50 percent.

The deal is expected to follow the spin-off of Materials Science Co within 18 months and a creditors’ reliability test, which is part of the limited-recourse financing used to fund the construction of the complex.

Once the transaction is complete, the Sadara Chemical IPO joint venture will be 50:50 owned by the two partners.

In May, Sadara’s chief executive said Aramco planned to cut its stake in Sadara via an initial public offering.

A statement gave no update on the listing of Sadara, which is due to take place on the Saudi stock market. It did not disclose any financial terms.

Sadara said this month it had commissioned the last plant at its petrochemicals complex in Jubail, in eastern Saudi Arabia.

The Sadara complex has 26 integrated facilities and the capacity to produce more than 3 million tonnes of products per year.

Many products are being made in the kingdom for the first time, including isocyanates, as the world’s top oil-exporting country moves downstream.

Sadara will transform the kingdom “from a consumer and importer to a global exporter,” Saudi Energy Minister Khalid al-Falih has said.

By Ahmed Farhatha and Reem Shamseddine

Source: Reuters

comments closed

Related News

May 26, 2024

Borealis signs first Austrian wind and solar PPA with Burgenland Energie

Energy & Chemical Value Chain

Borealis has partnered with Austria-based wind and solar power producer and green tech solution provider Burgenland Energie on a power purchase agreement (PPA). Under the ten-year agreement, renewable electricity will be provided by a hybrid renewable energy park located in Nickelsdorf, Austria, which is owned by Burgenland Energie’s subsidiaries Nick Alpha and Wind PV Operation.

May 26, 2024

DuPont to split into three companies

Energy & Chemical Value Chain

DuPont de Nemours Inc. announced plans to split into three separate, publicly traded companies. The electronic materials and water business will become independent companies, with the remainder of the company to comprise New DuPont. The splits will be complete within 18 to 24 months, and do not require shareholder approval.

May 26, 2024

Olin hires new leader for chlor-alkali and vinyls business

Energy & Chemical Value Chain

Olin Corp. has hired Deon Carter as vice president and president/chlor-alkali products and vinyls, effective June 17. Carter was previously COO at Continental Industries Group, a position he took April 2023 after serving as president and CEO of Scientific Design Company.

How can we help you?

We're easy to reach