Dow, Saudi Aramco Approve $20 Billion Petrochemical Project

According to Bloomberg, Dow Chemical Co. and Saudi Arabian Oil Co. will proceed with a $20 billion petrochemical plant at the Saudi port of Jubail as the world’s largest crude-oil exporter tries to diversify its economy. The joint venture, Sadara Chemical Co., will have capacity to make more than 3 million metric tons of chemicals a year. Sales of advanced chemicals used in applications such as cable coatings, packaging, carbon- fiber composites and water treatment will be $10 billion a year, Dow said. Earnings before interest, taxes, depreciation and amortization will be about $1 billion.