Dow Chemical and Saudi Aramco have approved the formation of a joint venture to build and operate a world-scale, fully integrated chemicals complex in Jubail Industrial City, Saudi Arabia. The new joint venture will be named as Sadara Chemical Company.  Construction will begin immediately and the first production units will come on line in the second half of 2015, with all units expected to be up and running in 2016. Once
operational, Sadara is expected to deliver annual revenues of approximately $10 billion.

"[This] announcement is outstanding proof of Dow's ongoing commitment to our growth strategy," said Andrew Liveris, Dow's chairman and CEO.

Total investment for the project, including third party investments, will be approximately $20 billion. Sadara will become an equal joint venture between Saudi Aramco and Dow after an initial public offering. In addition to equity from the partners, Export Credit Agencies and financial institutions will provide project financing to Sadara.