MOSCOW (MRC) -- Sadara Chemical Co. has signed an agreement for the multi-year supply of diphenylmethane diisocyanate (MDI) for a new production facility being built by E. A. Juffali & Brothers in PlasChem Park in Jubail, Saudi Arabia, according to GV.
Juffali’s project will consist of several units designed to produce highly differentiated chemicals and products for use in various industries in Saudi Arabia. Some of the units will receive direct feed of Sadara products, while others will use feedstock provided by other suppliers.
"The Juffali MDI project will cater to the local demand for polyurethanes in industries such as construction, furniture, special flooring for sports facilities and electrical appliances, all of which will benefit from locally sourced MDI for the first time ever in Saudi Arabia and the Middle East," explained Mohammad Alazzaz, director of Value Park at Sadara.
PlasChem Park, located adjacent to Sadara’s complex and being developed as a collaborative effort between Sadara and the Royal Commission for Jubail and Yanbu, is intended to strengthen Jubail’s position as a key enabler and supporter of the Kingdom’s downstream manufacturing sector, providing numerous opportunities in multiple market segments based on Sadara's technologies.
As MRC wrote previously, in June 2015, Sadara Chemical Co. signed a 20-year supply agreement with Energy Chemicals Sources Co. (ECSC), a new joint venture of Halliburton and The Industrialization & Energy Services Co. (TAQA), to supply feedstock to ECSC's planned chemical production facility to be built in Jubail, Saudi Arabia. Under the agreement, Sadara will supply 60,000 t/y of ethylene oxide and 20,000 t/y propylene oxide via pipeline to the new specialty chemicals complex, which will be located in PlasChem Park. Construction on the facility is planned to begin this year with production expected in the fourth quarter of 2016.
Sadara is building a world-scale, fully integrated chemicals complex in Jubail Industrial City 2, Kingdom of Saudi Arabia. The complex will be comprised of 26 manufacturing units, will possess flexible cracking capabilities and is expected to produce more than 3 million metric tons of high-value performance plastics and specialty chemical products. The first production units are expected to come on-line in the second half of 2015, with full production starting in mid-2016.
MRC