Formation of Dow and Saudi Aramco Proposed Joint Venture Making Significant Progress

The establishment of Sadara Chemical Company, a planned joint venture under formation between The Dow Chemical Company DOW and the Saudi Arabian Oil Company (Saudi Aramco), is making significant progress following the authorization by the Boards of Directors of both companies in late July. The two partners are in the final stages of establishing Sadara, and it is expected that the officer and board member nominees will soon be officially announced. The on-line recruitment process for the first in-take of Saudi apprentices commenced in August and the response was overwhelming, with over 6,300 applications received. Meanwhile, the Engineering, Procurement & Construction (EPC) contract bidding process continues. 50% of the capital investment amount is already under contract with another 20% out for bid. It is expected that all invitation for bids will be out by end of the year. “We are pleased with the progress that we have made so far,” said Jim McIlvenny, Dow's Group Senior Vice President for Mega Projects. “Both Dow and Saudi Aramco are excited at the benefits that this historic partnership is going to bring and we are committed to making Sadara a reality. We certainly look forward to realizing the extraordinary potential that Sadara holds.” The authorization for Sadara came after an extensive project feasibility study and front-end engineering and design effort which began in 2007. Sadara will build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Kingdom of Saudi Arabia. Comprising 26 manufacturing units, building on Saudi Aramco's project management and execution expertise, and utilizing many of Dow's industry leading technologies, the complex will be one of the world's largest integrated chemical facilities, and the largest ever built in one single phase.