Sadara inks deal for auto manufacturing cluster in PlasChem Park

Sadara Chemical Co. has signed a cooperation agreement with Saudi National Automobiles Manufacturing (SNAM) for the latter’s planned automobile manufacturing cluster in the PlasChem Park, it said on Wednesday.

Under the deal, Sadara – a joint venture between Saudi Aramco and Dow Chemical Co. – will work with SNAM’s auto cluster tenants, which will include automobile parts manufacturing companies.

Sadara will also identify potential third-party investors that can use its chemicals and plastics products to manufacture automotive parts locally.

Spread over an area of 1 million square meters, the auto cluster is expected to be the largest manufacturing cluster in the PlasChem Park, an industrial zone located adjacent to the Sadara site in Jubail Industrial City II. 

Sadara’s 12-square kilometer PlasChem Park is being developed in collaboration with the Royal Commission for Jubail and Yanbu. It will consist of downstream chemical and conversion industries, supplied with products from Sadara and others in Jubail.