Sadara signs long-term agreements with German JV in PlasChem Park

Logo of Sadara 

Sadara Chemical Co. (Sadara) signed long-term agreements with SADIG Industries and ILCO Chemicals (SADIG-ILCO), a Saudi-German joint venture (JV), to supply feedstock chemicals to SADIG-ILCO’s future chemical manufacturing facility in Jubail’s PlasChem Park.

This 20-year agreement follows a successful primarily deal that was signed previously between the companies, the state-owned SPA reported.

Under the terms of the supply agreements, SADIG-ILCO’s new Plaschem Park facility will offtake ethylene oxide (EO) and propylene oxide (PO) from Sadara through the new EO and PO pipelines that are being built by Sadara.

Using these products as feedstock, SADIG-ILCO will manufacture a range of specialty chemicals which will further enable the production of market-ready products in several areas, including cleaners, mining floatation, metal working fluids, industrial lubricants, plastic additives and many other industrial applications.

The EO-PO project is part of SADIG-ILCO's third generation project line-up with an investment of approximately $70 million (SAR 263 million).