Sadara supply ethylene oxide, propylene oxide SADIG-ILCO

Sadara to supply ethylene oxide, propylene oxide to SADIG-ILCO

9:09 AM, 18th January 2018
Sadara to supply ethylene oxide, propylene oxide to SADIG-ILCO
Sadara Chemical and SADIG-ILCO signing ceremony.

JUBAIL, SAUDI ARABIA: Sadara Chemical Company (Sadara) has signed an agreement to supply SADIG-ILCO, a new Saudi-German joint venture focused on the manufacture of a wide range of speciality chemicals with ethylene oxide (EO) and propylene oxide (PO).

Under the terms of the supply agreement, SADIG-ILCO’s new PlasChem Park facility will offtake EO and PO from Sadara through the EO and PO pipelines that are being established by Sadara.

Using these products as feedstock, the company will manufacture a range of speciality chemicals, some of which will be produced for the first time in the Kingdom of Saudi Arabia. This will further enable the production of market-ready products in several areas, including coatings and adhesives, personal care products and many other industrial applications.

“With Sadara’s products now in the local, regional and global markets, we are able to show investors definitively that the Kingdom is an attractive destination for new and exciting downstream manufacturing opportunities. The speciality chemicals that SADIG-ILCO will produce locally will replace imports and encourage the development of new downstream speciality industries,” said Mohammad Alazzaz, director of Value Park for Sadara.

“The project is in line with Saudi Vision 2030. The EO/PO project is part of SADIG Industries’ growth strategy and will bring technical know-how to manufacture speciality chemicals in the Kingdom and create quality long-term stable job opportunities. The EO/PO project is part of our third-generation project line-up, with an investment of approximately $40 million. It forms a key part of a number of projects we are currently working on with a total investment of approximately $300 million through which we aim to create more than 300 direct quality jobs. We envision that the project will introduce new chemicals that will enable further downstream industries in the Kingdom and will add value to the local economy and the country’s export portfolio,” said Eng. Ahmad Alubaid, managing director, SADIG Industries.

“We believe diversification to the existing chemical market in the Kingdom will open new opportunities for further expansion of the Kingdom’s speciality chemicals industry. SADIG-ILCO will allow us to tap the region’s growing demand and expand into Saudi Arabia, as well as the other regional markets. By combining our downstream manufacturing experience and technical expertise with Sadara’s speciality chemicals value chain, we will be able to bring many new and exciting products to the Kingdom,” said Dr Corvin Volkholz, technical director, ILCO.

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