Abu Dhabi: Saudi Arabia’s Sadara chemical company’s new $20 billion (Dh73.4 billion) chemical complex is on track for completion by mid of 2017, the chief executive officer of the company said in Abu Dhabi on Wednesday.
The complex, which is the largest such complex in the world will have 26 manufacturing plants that will produce a range of petrochemical products.
Sadara is a joint venture between Saudi Aramco and the Dow Chemicals company of the US.
“The commissioning and start-up continues. We are at the tail end of commissioning and will be ready by midyear of 2017,” Ziad Al Labban, CEO of Sadara chemical company told reporters at a petrochemicals conference in Abu Dhabi.
The complex with an investment outlay of about $20 billion is funded with $12.5 billion of debt and the remaining from the shareholders, he said.
The capacity of the plant is over 3 million metric tonnes per year.
The construction of the plant began in the third quarter of 2011 and the first production started in 2015, he added.
When asked about IPO (Initial public Offering) plans he said, Sadara’s IPO will be done by Saudi Aramco, the majority shareholder in the company.
“There will be an IPO. Aramco has 65 per cent stake in Sadara and they want to become equal with Dow, which has 35 per cent stake. The 30 per cent will be IPoed by Saudi Aramco.”
He did not give a time frame for the IPO. He also said advisers are yet to be appointed.
Saudi oil giant Saudi Aramco is planning an initial public planning in 2018.
