Sadara Chemical Company and E A Juffali & Brothers, a privately-owned Saudi company, have signed a supply agreement through which Sadara will supply methylene diphenyl diisocyanate (MDI) to a new Juffali chemical production facility in PlasChem Park in Jubail Industrial City II.

The new Juffali facility will consist of several manufacturing plants designed to produce highly differentiated chemicals and products slated for use in the kingdom of Saudi Arabia’s various industries.

Some of the plants will receive a direct feed of Sadara’s products, while others will rely on raw materials provided by other suppliers.

The PlasChem Park is adjacent to the Sadara Chemical Complex and covers a 12 sq km area. It is a collaborative effort between the Royal Commission for Jubail and Yanbu (RCJY) and Sadara, and is uniquely positioned for the development of new value added downstream manufacturing and business opportunities.

"This supply agreement heralds a major collaboration between Sadara and Juffali. A wide range of products will be manufactured using Sadara’s differentiated product slate as well as those available from other companies in the kingdom. The Juffali MDI project will cater to the local demand for polyurethanes in industries such as construction, furniture, special flooring for sports facilities and electrical appliances, all of which will benefit from locally supplied MDI for the first time ever in Saudi Arabia and the Middle East," says Mohammad Alazzaz, director of Value Park at Sadara.

"PlasChem Park will strengthen Jubail’s position as a key enabler and supporter of the kingdom’s downstream manufacturing sector, providing numerous opportunities in multiple market segments based on Sadara’s state of the art technologies. Our products will enable important applications in a number of key industries such as oil and gas chemicals, construction materials, auto components, to name just a few," he says.