Sadara Chemical ropes in auto industry to set up cluster in PlasChem Park

Ziad Al-Labban, CEO of Sadara, said, “This is an exciting partnership for us as it will help drive development of an emerging sector within Saudi Arabia’s downstream manufacturing industry. Our specialty chemical products can be utilised by third-party investors to make components used in automobile manufacturing. With SNAM on board, we have a catalyst for manufacturers to come in and quickly begin to realise value on their investments.”

Dr Fahd S Al-Dohish, president and CEO, SNAM, commented, “The project will include basic facilities such as a press shop, welding (body) shop, paint shop, and general assembly shop, in addition to support facilities such as a logistics warehouse, test track, and admin building. Furthermore, another one million square meters next to SNAM’s factory has been allocated for automotive tier 1 suppliers.”

Furthermore, Dr Al-Dohish added, “In order to create a sustainable automotive industry ecosystem, SNAM researched local companies with operations related to automotive industry in order to activate tier 2 and tier 3 suppliers who can do business with international tier 1 suppliers. Another important aspect of SNAM’s plan is to utilise the local resources in manufacturing the automotive parts as much as possible.”

PlasChem Park is a 12-square kilometer industrial park in Jubail Industrial City II dedicated to downstream chemical and conversion industries. PlasChem Park is a key element differentiating Sadara from other petrochemical, chemical and plastics manufacturing projects in Saudi Arabia.

The park is uniquely positioned to enable and support downstream opportunities in many market segments, including the hydrocarbon resin cluster, ethylene oxide/propylene oxide (EO/PO) cluster, polyurethane cluster and a plastics cluster. Collectively, these clusters are expected to attract diversified investments into PlasChem Park in an array of downstream applications such as the production of oil and gas chemicals, construction materials, auto components, animal feed, paints and coatings, as well as home and personal care products.