Sadara signs supply deal for PlasChem Park

Khalid Al-Luhaidan, Ziad Al-Labban, Hong Jungko, Abdullah Al-Amoudi at the agreement signing ceremony.
Updated 27 May 2016

Sadara signs supply deal for PlasChem Park

JUBAIL: Sadara Chemical Company (Sadara) has entered into a supply agreement with Surfactants’ Detergent Company (SDC), a joint venture being developed by a Saudi/South Korean consortium which plans to build a chemical production facility in PlasChem Park, located in Jubail Industrial City II.
The Saudi/South Korean consortium comprises SFC Ltd, a Korean technology provider, and Saudi partners Ahmad K. Al-Amoudi Ltd. (AKA) and Maydan Industry for Industrial Developments & Investment Ltd. (Maydan Industry).
Under the agreement, Sadara will supply Ethylene Oxide (EO) and Propylene Oxide (PO) to SDC via pipeline. SDC will specialize in supplying the domestic market’s demand for detergents.
Commenting on the agreement, Sadara’s Value Park Director Mohammad Alazzaz said: “We welcome the interest of Korean SMEs to participate in our specialty chemicals market which is growing rapidly in line with the move to diversify the Kingdom’s economy.”
The director said: “This consortium between a Korean Specialty company as technology provider and local Saudi Investors and entrepreneurs is a great model of collaboration, combining local talent pools and knowledge with international experience and expertise. SFC’s interest in entering the Saudi market highlights the global interest we have received for the many opportunities PlasChem Park has to offer.”
Alazzaz said: “Infrastructure development on site at PlasChem Park is nearly complete, with power and utilities tie-ins being finalized in each of the divided lots. PlasChem Park is uniquely positioned to enable and support downstream opportunities in many market segments such as those industries that rely on EO and PO, and we look forward to welcoming SDC to the EO/PO Cluster. PlasChem Park investors will also benefit from the many additional shared services that are being developed, reducing their capital footprint as well as simplifying and streamlining their operations in the long run,” said Alazzaz.
SFC CEO Hong Jungku said: “This joint venture is an excellent opportunity for us in the SFC and for our Saudi partners. We are creating a surfactants plant which is very advanced technologically and has very good cost efficiency. The joint venture leverages the unique strengths of SFC and our Saudi partners to create substantial value for our stakeholders.”
In welcoming the deal, Maydan Industry Managing Director and SDC Chairman Khalid Alluhaidan said: “The positive impact of the Saudi government’s vision in diversifying the Kingdom’s economy has helped create this alliance with SDC and enabled this deal with Sadara to come to fruition.”
He said: “We greatly appreciate the dedicated support by our colleagues in Sadara and we would also like to extend our thanks and appreciation to the Royal Commission for Jubail & Yanbu for their support in developing PlasChem Park.”
PlasChem Park is attracting diversified investments for downstream applications such as the production of oil and gas chemicals, construction materials, paints and coatings, as well as home and personal care products.
These investments will create unprecedented downstream manufacturing opportunities, new jobs for Saudi nationals, as well as contributing to the fulfillment of the Government’s vision to diversify the Kingdom’s economy.
Sadara is a joint venture developed by the Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company. With a total investment of about $20 billion, Sadara is building a world scale chemical complex in Jubail Industrial City II in Saudi Arabia’s Eastern Province. Comprising 26 world scale manufacturing units, the Sadara complex is the world’s largest to be built in a single phase and will be the first in the Middle East to use refinery liquids, such as naphtha, as feedstock.

Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019

Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.