Dow Chemical to increase stake in Sadara JV
by ChemOrbis Editorial Team - content@chemorbis.com
According to media reports, the US company Dow Chemical expressed its plans to increase its stake by 15% in Sadara Chemical, a joint venture with Saudi Aramco, to equalize the ownership in the venture, which is currently at 35-65%. Stakeholders were said to have signed a non-binding agreement that allows Dow to acquire an additional 15% share. Financial terms were not disclosed.
The Sadara plastics and specialty chemicals complex, which houses 26 integrated facilities in Jubail, has a production capacity of more than 3 million tons/year. This month, Sadara had launched the last plant at its petrochemical hub in Jubail.
Saudi Aramco aims to concentrate on petrochemical operations due in part to the kingdom’s efforts to diversify its economy and reduce its dependency on crude. In May, Sadara’s chief executive said Aramco planned to cut its stake in Sadara via an initial public offering. The initial public offering of 5% of Aramco’s shares is planned for next year.
The company will be a 50:50 joint venture after Materials Science Co’s spin-off within 18 months after the close of the merger of equals between Dow and DuPont on Aug. 31. The company also need to have the creditors’ reliability test, which is a part of the limited-recourse financing used to fund construction of the complex, are completed.
The Sadara plastics and specialty chemicals complex, which houses 26 integrated facilities in Jubail, has a production capacity of more than 3 million tons/year. This month, Sadara had launched the last plant at its petrochemical hub in Jubail.
Saudi Aramco aims to concentrate on petrochemical operations due in part to the kingdom’s efforts to diversify its economy and reduce its dependency on crude. In May, Sadara’s chief executive said Aramco planned to cut its stake in Sadara via an initial public offering. The initial public offering of 5% of Aramco’s shares is planned for next year.
The company will be a 50:50 joint venture after Materials Science Co’s spin-off within 18 months after the close of the merger of equals between Dow and DuPont on Aug. 31. The company also need to have the creditors’ reliability test, which is a part of the limited-recourse financing used to fund construction of the complex, are completed.
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