Arab News
Arab
News,
Wed, April 1, 2026 | Shawwal 13, 1447
Aramco-Dow joint venture Sadara Chemical halts production amid supply chain disruptions
Saudi Arabia:
Sadara Chemical Co., a joint venture between Saudi
state oil giant Aramco and US chemicals firm Dow, has temporarily shut down
production at its parent-operated plant, citing ongoing supply chain
disruptions.
Sadara Chemical operates a complex in the
Saudi city of Jubail with annual production capacity of over 3 million
metric tonnes of chemicals and plastics.
The suspension was announced in a regulatory
filing by Sadara Basic Services, which issues Islamic bonds for its parent.
The shutdown comes as the conflict involving Iran,
the US and Israel continues to resonate across the Middle East, disrupting
supply chains, constraining the movement of feedstock and finished products, and
heightening risks to critical energy and industrial infrastructure.
The escalation has added pressure on petrochemical
producers in the Gulf, where operations are closely tied to regional logistics
networks and export routes.
A Tadawul statement said: “Sadara cannot provide,
at the present time, an estimate for the return to production, as this is
contingent on domestic and international factors.”
It added: “The shutdown is expected to have an
impact on the financial results for 2026.”