Sadara will supply ethylene oxide (EO) and propylene oxide (PO) to SDC via pipeline. SDC will specialise in supplying the domestic market’s demand for detergents

Sadara Chemical Company (Sadara) has entered into a supply agreement with Surfactants’ Detergent Company (SDC), a joint venture being developed by a Saudi-South Korean consortium which plans to build a chemical production facility in PlasChem Park, located in Jubail Industrial City II.

The Saudi-South Korean consortium comprises SFC Ltd, a Korean technology provider, and Saudi partners Ahmad Al Amoudi Ltd (AKA) and Maydan Industry for Industrial Developments & Investment Ltd (Maydan Industry).

Under the agreement, Sadara will supply ethylene oxide (EO) and propylene oxide (PO) to SDC via pipeline. SDC will specialise in supplying the domestic market’s demand for detergents.

Commenting on the agreement, Sadara’s value park director Mohammad Alazzaz says: "We welcome the interest of Korean SME’s to participate in our speciality chemicals market which is growing rapidly in line with the move to diversify the kingdom’s economy.

"This consortium between a Korean Speciality company as technology provider and local Saudi Investors and entrepreneurs is a great model of collaboration, combining local talent pools and knowledge with international experience and expertise. SFC’s interest in entering the Saudi market highlights the global interest we have received for the many opportunities PlasChem Park has to offer."

"Infrastructure development on site at PlasChem Park is nearly complete, with power and utilities tie-ins being finalized in each of the divided lots. PlasChem Park is uniquely positioned to enable and support downstream opportunities in many market segments such as those industries that rely on EO and PO, and we look forward to welcoming SDC to the EO/PO Cluster.

PlasChem Park investors will also benefit from the many additional shared services that are being developed, reducing their capital footprint as well as simplifying and streamlining their operations in the long run," says Alazzaz.

Chief executive officer of SFC Hong Jungku says: "This joint venture is an excellent opportunity for us in the SFC and for our Saudi partners. We are creating a surfactants plant which is very advanced technologically and has very good cost efficiency. The joint venture leverages the unique strengths of SFC and our Saudi partners to create substantial value for our stakeholders."