US-based Dow Chemical has signed a memorandum of understanding (MoU) with Saudi Aramco to increase its stake in the Sadara Chemical Company by 15 per cent.
The US firm currently owns 35 per cent of the chemicals joint venture with state oil company Aramco, and the 15 per cent increase would result in each party holding 50 per cent of the firm.
The potential restructure would occur after the planned separation of the Materials Science Company within 18 months following the completion of the merger between Dow and US-based Dupont, which is expected to be completed on 31 August.
MEED reported in July that Sadara Chemical had begun operating its propylene glycol plant in Jubail Industrial City.
According to international media reports, production from the plant has now started and Sadara is working to achieve full operation of the mega petrochemicals complex, which will house 26 facilities when fully operational.
Sadara started operation of the mixed feed steam cracker at the complex in 2016, which has the capacity to crack 85 million cubic feet a day of ethane. When fully commissioned, the Sadara facility will have the capacity to produce 3 million tonnes of performance plastics and high-value chemicals in a year.
In May, MEED reported that Aramco was considering reducing its stake in the Sadara joint venture through an initial public offering of the company.