DHAHRAN, Saudi Arabia (Zawya Dow Jones)--Dow Chemical Co.'s (DOW) top executive said Saturday a planned mega chemical joint venture with Saudi Arabian Oil Co. would generate revenues to the tune of $10 billion within five years, making the company the equivalent of a Fortune 250 company.
"Five years from now, we expect the venture to be the equivalent of a Fortune 250 company, generating over $10 billion in annual revenue while spurring job growth in the kingdom and abroad," Andrew Liveris, Dow's chairman and chief executive officer, said at the signing ceremony of the project in Dhahran in the Saudi Arabia's Eastern Province.
State-run Aramco, the world's biggest oil company and Dow signed an agreement earlier Saturday to build one of the world's largest chemicals plants in the oil-rich desert kingdom.
The partners will spend around $12 billion on building the plant, located at Jubail on Saudi Arabia's Persian Gulf coast, producing high-margin chemicals and plastics for fast-growing Asian and Middle East markets, with another $8 billion earmarked for third-party investors and contingencies.
Construction of the 26 plants that will make up the complex--known as Sadara Chemical Co.--is scheduled to begin immediately, with first output due to come on line in the second half of 2015 and full operation scheduled for the following year.
Sadara will produce polyeurethanes, propylene oxide, propylene glycol, elastomers, linear low-density polyethylene, low density polyethylene, glycol ethers and amines.
Copyright (c) 2011 Dow Jones & Co.
Copyright © 2011 Dow Jones Newswires
