Sadara Chemical Company, a joint venture between Saudi Aramco and Dow, has signed a multi-year contract to supply methylene diphenyl diisocyanate (MDI) to a new chemical production facility in Saudi Arabia.
The complex, operated by E. A. Juffali & Brothers, a privately-owned Saudi company, will consist of several manufacturing plants producing a variety of chemicals and products for the domestic market. Some of the plants will use Sadara’s products, while others will rely on raw materials provided by other suppliers.
Juffali plans to build the facility at PlasChem Park in Jubail Industrial City II, adjacent to the Sadara Chemical Complex.
"This supply agreement heralds a major collaboration between Sadara and Juffali. A wide range of products will be manufactured using Sadara’s differentiated product slate as well as those available from other companies in the Kingdom," said Mohammad Alazzaz, director of Value Park at Sadara. "The Juffali MDI project will cater to the local demand for polyurethanes in industries such as construction, furniture, special flooring for sports facilities and electrical appliances, all of which will benefit from locally supplied MDI for the first time ever in Saudi Arabia and the Middle East."
Juffali is aiming to develop the capability for specialty chemicals production in Saudi Arabia, ultimately replacing imports of materials and increasing the potential for exports of finished products.
The introduction of state-of-the-art technologies will open up career opportunities for Saudi professionals and offer more downstream investment and manufacturing opportunities in the Kingdom, the company said.