MOSCOW (MRC) -- Dec 8 Saudi Arabia's Sadara Basic Services, fully owned by Sadara Chemical, said on Tuesday that operations had started at its polyethylene (PE) plant in Jubail Industrial City II, said Reuters.
The plant is designed to produce 375,000 metric tons per year of products used in specialty applications, such as the manufacture of food-grade plastics, industrial and consumer packaging and health and hygiene films, it said in a bourse statement.
It is the first of 26 plants being built in the Sadara complex located in Jubail Industrial City II, it said. Sadara said this year that the plant would start producing petrochemicals by the end of 2015.
The start-up is expected to impact fourth-quarter results, it said.
Sadara Chemical is a USD20 billion petrochemical joint venture between Saudi Aramco and Dow Chemical.
As MRC wrote earlier, 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.
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.
The Dow Chemical Company is an American multinational chemical corporation headquartered in Midland, Michigan, United States. Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber. In 2012, Dow had annual sales of approximately USD57 billion. The company"s more than 5,000 products are manufactured at 188 sites in 36 countries across the globe.
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