Sadara Chemical Company, a 50:50 joint venture of Saudi Aramco and Dow Chemical, has signed a cooperation agreement with Saudi National Automobiles Manufacturing Company (SNAM) covering a production facility the automaker plans to establish at the jv’s PlasChem Park plastics processing site.

Under the agreement, Sadara and SNAM will explore possibilities for supplying specialty chemicals and plastics to SNAM’s parts suppliers – for the most part original equipment manufacturers (OEMs) at Tier 1 and Tier 2 levels – who will also set up production in the park, part of an industrial zone adjacent to the Sadara site in Jubail Industrial City II. 

The automotive cluster will be one of several other chemical- and plastics-related clusters operating in the park and most likely the largest in the manufacturing complex being developed in collaboration with the Saudi Royal Commission for Jubail and Yanbu. The aim is to provide a regular customer base for products manufactured by Sadara.

The car assembly plant and the Tier 1 plants will stand on space of around 1 million square meters each.  SNAM’s CEO, Fahd S. Al-Dohish, said the facilities will include a press shop, body shop, paint shop and general assembly shop, along with support facilities such as a logistics warehouse, test track, and administration building.

PlasChem, which covers 12 square kilometers altogether, is a key element differentiating Sadara from other petrochemical, chemical and plastics manufacturing projects in Saudi Arabia, the jv partners have said. The park wants to attract a diversified mix of industries, ranging from production of oil and gas chemicals, construction materials, auto components, animal feed and paints and coatings, in addition to home and personal care products. 

The other clusters are dedicated to hydrocarbon resins, ethylene and propylene oxide, polyurethanes and plastics.