Sadara signs supply agreement with Saudi-Korean consortium JV

Sadara signs supply agreement with Saudi-Korean consortium JV

10:21 AM, 30th May 2016
Sadara signs supply agreement with Saudi-Korean consortium JV

JUBAIL, SAUDI ARABIA: Sadara Chemical Company (Sadara) has entered into a supply agreement with Saudi-South Korean consortium joint venture, Surfactants’ Detergent Company (SDC), which plans to build a chemical production facility in PlasChem Park, located in Jubail Industrial City II.

The Saudi/South Korean consortium is comprised of SFC Ltd, a Korean technology provider, and Saudi partners Ahmad K Al-Amoudi Ltd (AKA) and Maydan Industry for Industrial Developments & Investment Ltd (Maydan Industry).

Under the agreement, Sadara will supply ethylene oxide (EO) and propylene oxide (PO) to SDC via pipeline. SDC will specialize in supplying the domestic market’s demand for detergents.   

“This consortium between a Korean Specialty company as technology provider and local Saudi Investors and entrepreneurs is a great model of collaboration, combining local talent pools and knowledge with international experience and expertise. SFC’s interest in entering the Saudi market highlights the global interest we have received for the many opportunities PlasChem Park has to offer,” said Mohammad Alazzaz, Sadara’s value park director.

“This joint venture is an excellent opportunity for us in the SFC and for our Saudi partners. We are creating a surfactants plant which is very advanced technologically and has very good cost efficiency. The joint venture leverages the unique strengths of SFC and our Saudi partners to create substantial value for our stakeholders,” said Hong Jungku, CEO of SFC. 

“The positive impact of the Saudi government’s vision in diversifying the Kingdom’s economy has helped create this alliance with SDC and enabled this deal with Sadara to come to fruition. We greatly appreciate the dedicated support by our colleagues in Sadara and we would also like to extend our thanks and appreciation to the royal commission for Jubail & Yanbu for their support in developing PlasChem Park,” said Khalid Alluhaidan, managing director of Maydan Industry.

© Worldofchemicals News



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