Dow Chemical plans to buy an additional 15 percent stake in its $20 billion joint venture with Saudi Aramco, the companies said on Monday according to reports.
The U.S.-Saudi joint venture, named Sadara, aims to transform Saudi Arabia “from a consumer and importer to a global exporter,” according to Saudi Energy Minister Khalid al-Falih.
U.S.-based Dow Chemical currently owns 35% of the JV, but has agreed to purchase up to 50% of the company, according to Reuters. That means Sadara will be 50:50 owned by the two partners.
On August 14, the joint venture company of Dow Chemical and Saudi Aramco made the announcement that all 26 plants have been commissioned, making the Sadara facility the world’s largest chemical complex. According to marketrealist.com, it manufactures propylene oxide, propylene glycol, ethylene oxide, glycol ethers, amines, isocyanates, and polyether polyols, which added the facility is already serving more than 600 customers involving 70 countries and 32 polyethylene products.
Another four new products will be added to it by the end of 2017.
Many products are produced in the kingdom for the first time, including isocyanates as the world’s largest oil exporter moves downstream.
In June of 2016, Dow Chemical became the first company to receive a trading license from the Government of Saudi Arabia “allowing 100 percent ownership in the country’s trading sector,” following the visit of H.R.H. Crown Prince Mohammed bin Salman to the United States.