Sadara, Harcros-ARA sign supply pact for new chemical facility

Sadara Chemical Company (Sadara) has signed a supply agreement with Harcros-ARA for its upcoming chemical facility in PlasChem Park in Jubail Industrial City II, the company said in a statement.

Under terms of the agreement, Sadara will supply Ethylene Oxide (EO) and Propylene Oxide (PO) to the chemical facility to fuel the production of various specialty chemicals.

Harcros-ARA is a new venture established by US-based Harcros Chemicals Inc. (Harcros), a global manufacturer and distributor of industrial and specialty chemicals, and ARA Specialty Industrial Company (ARA), a chemical manufacturer based in Riyadh.

The proposed Harcros-ARA facility will produce specialty chemicals used in a variety of applications from construction materials, paint and coating additives, to metal treatment and mining, water treatment and enhanced oil recovery. Methyldiethanolamine (MDEA) will also be produced for oil and gas applications.

“These products, which will be manufactured and introduced in the region, will serve local, regional and export markets, in line with Vision 2030, and Sadara’s role as a key contributor in driving development of the downstream manufacturing industry in the Kingdom," said Dr Faisal Al-Faqeer, chief executive officer, Sadara.

"This project will create jobs – both directly and indirectly – and will introduce new technologies to the local market," he added.

PlasChem Park is a 12 square kilometres industrial park in Jubail Industrial City II, dedicated to downstream chemical and conversion industries.

At present, two downstream investments are operating in Jubail Industrial City II and several existing investors in the PlasChem Park will conclude their planned project engineering activities in the first half of 2018 and more activities will take place in the second half of 2018, the statement said.