Sadara, the World’s Largest Chemicals Complex Built in a Single Phase, Commemorates Commissioning of All 26 Plants

Commissioning of its last plant, the region’s first isocyanates
facility, marks milestone achievement for the massive chemicals complex

JUBAIL, Saudi Arabia–(BUSINESS WIRE)–Sadara Chemical Company (Sadara), a joint venture between Saudi Aramco
and The Dow Chemical Company, today celebrates the commissioning of the
last of its 26 plants – an isocyanates section currently producing crude
quantities of toluene di isocyanate (TDI) and other specialty chemicals.

The landmark commissioning milestone was celebrated in the presence of
Saudi Arabia’s Minister of Energy, Industry and Mineral Resources and
Saudi Aramco Chairman, His Excellency Khalid A. Al-Falih; Dow Chairman
and CEO Andrew Liveris; and Ahmad Saadi, Chairman of Sadara and Saudi
Aramco Senior Vice President of Technical Services at the Sadara complex
in Jubail Industrial City II.

A first for the Gulf region, the TDI section is mainly used in the
production of flexible polyurethane foam for furniture, mattresses,
cushioning and car seats. TDI also has a variety of industrial uses,
such as coatings, adhesives, sealants, specialty foams and other
products.

The TDI section consists of three integrated units producing di nitro
toluene (DNT), toluene di amine (TDA), and toluene di isocyanate (TDI).
The DNT and TDA units started operations in April, and the TDI unit
began crude production this week.

The isocyanates envelope also includes an unprecedented integrated
facility producing PMDI or polymeric methylene di phenyl di isocyanate.
The PMDI Plant began producing commercial quantities in early June.

Additionally, Sadara is producing another important polyurethane
precursor – polyether polyols. The company’s Polyols Plant came
on-stream in late July.

The world’s largest integrated chemicals complex ever built in a single
phase, and established by the largest foreign direct investment in the
Saudi petrochemicals industry, Sadara has been bringing its chemical
plants on-stream in a carefully planned sequence and will produce more
than three million tons of high-value performance plastics and specialty
chemical products annually. Sadara’s mixed feed cracker, the heart of
Sadara’s operations, started up in August 2016, cracking ethane gas and
naphtha liquid feedstock to produce chemicals for the site’s other
facilities. Sadara’s four polyethylene production units came on-line
between late 2015 and early 2017.

Thirty-two polyethylene products have been qualified to-date, serving
more than 600 customers in 70 countries. An additional four new
polyethylene products will be added to Sadara’s capabilities by year-end.

Sadara’s specialty chemicals portfolio includes facilities that
manufacture propylene oxide, propylene glycol, ethylene oxide, glycol
ethers, amines, isocyanates and polyether polyols.

Al-Falih said, “Sadara’s commissioning positions the company to fully
deliver its promise as a major catalyst for Saudi Arabia’s economic
future – a promise that will be felt in human terms.

“Sadara’s slate of high-value chemicals, including many firsts for the
Kingdom and the region, will create the quality performance, value-added
and plastics products that support a higher living standard around the
world, especially in the emerging Asia Pacific and Middle Eastern
markets that will drive two-thirds of global petrochemical demand over
the next decade.

“In addition to transforming the Kingdom from a consumer and importer to
a global exporter, Sadara will create new value chains and technologies
that will attract foreign and domestic investment, spurring new sectors
and entrepreneurial business, and creating thousands of manufacturing
jobs for Saudis. In this way, Sadara is perfectly aligned with the
Kingdom’s national transformation goals as expressed in Vision 2030. By
driving non-oil sector growth, innovation and better-life opportunities,
Sadara will deliver progress and prosperity now, and for generations to
come.”

Liveris said, “Today marks a pivotal moment for this game-changing joint
venture – for Dow, our partners at Saudi Aramco and for the Kingdom of
Saudi Arabia – delivering market-driven solutions that have never before
been manufactured in the Kingdom and supporting the diversification of
its economy in line with Vision 2030. Dow has been a strategic partner
in Saudi Arabia for more than four decades and is the Kingdom’s largest
foreign investor. Commissioning of Sadara’s final plant marks a pivotal
moment in the history of this landmark public and private partnership
that advances Dow’s growth strategy and will help transform the
Kingdom’s rich resources into solutions for the world through a thriving
manufacturing sector.”

Saudi Aramco President and CEO Amin H. Nasser called Sadara a major
milestone in Saudi Aramco’s strategic intent to become the world’s
foremost integrated energy and chemicals company.

“Sadara is a flagship chemicals project that significantly advances our
ability to derive the maximum value from every hydrocarbon molecule, and
to participate more broadly across the petroleum value chain,” Nasser
said.

“The closer integration of Saudi Aramco’s refining networks with
chemical production brings greater resilience and robustness to our
portfolio. Using raw materials provided by SABIC, SATORP and Sadara
itself, the complex will transform raw materials and feedstocks into
high-value products – a position of strength that drives business
growth. Our strategy to make chemicals a top-tier global business will
have a multiplier effect on jobs, industries and technologies,
especially through industrial parks as a base for conversion industries
making plastics and plastic products from petrochemicals. As a creator
of entirely new products and industries, Sadara is a transformational
company that will benefit all stakeholders.”

Sadara Chairman Ahmad Saadi said: “Sadara has come a long way from the
shareholder agreement signing six years ago, to the official
inauguration in November. Yet the commissioning of all our plants is not
the finish-line, but Sadara’s start in meeting rising demand for
high-quality chemicals, plastics and performance products, especially in
emerging markets, and stimulating Saudi Arabia’s industrial growth
across the automotive, construction, manufacturing, pharmaceuticals and
consumer goods sectors.”

The Sadara Chairman added: “The future will be demanding, but our
determination and commitment are more than equal to the task. Knowing
Sadara’s ‘can do’ attitude, I’m confident that we will exceed the
expectations that our shareholders have set for us.”

Strategically located to benefit from competitive feedstocks, Sadara
will serve the needs of Dow customers across the Asia Pacific, India,
the Middle East, Africa and Central and Eastern Europe.

To date, Sadara has more than 4,100 employees, the majority of whom are
Saudis. Almost 2,000 of these employees have completed intensive,
technology-centric, on-the-job training (OJT) programs at various Saudi
Aramco and Dow sites in Saudi Arabia and around the world for advanced
chemicals production technologies knowledge. The Sadara OJT program is
one of the largest and most sophisticated technological training
programs ever undertaken by any company in Saudi Arabia.

In addition, the PlasChem Park, a world-class industrial park for
chemical and conversion industries created by a collaboration between
Sadara and the Royal Commission for Jubail and Yanbu, is expected to
attract quality investments valued at 20 billion Saudi Riyals, and to
create thousands of direct and indirect jobs.

About Dow

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is driving innovations that extract value from material, polymer,
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and in high-growth sectors such as packaging, infrastructure,
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people worldwide. The Company’s more than 7,000 product families are
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