Sadara Chemical Company (Sadara) has begun full commercial operations at its $20 billion complex at Jubail Industrial City II in Saudi Arabia's Eastern Province.

The complex has been under design and construction for a decade and its construction comprised scores of different contract packages.

It has been built for Sadara Chemical Company, a partnership between Saudi Aramco (which owns a 65 percent stake in the business) and US-based giant Dow Chemicals (35 percent).

It is the biggest chemicals complex of its kind ever built in a single phase and contains 26 units that will convert refined hydrocarbons into three million tonnes of various plastics and chemicals products. It was built as a method for Saudi Arabia to generate more added value from its oil resources and will feed into a new 'plaschem' park that will stretch over 12 square kilometres, filled with manufacturers producing everything from brake fluid and paints to pharmaceutical products, detergents and cleaning fluids.

Sadara CEO Ziad Al-Labban said: “Sadara has come a long way in the last six years, from the signing of the original agreement between our shareholders, Saudi Aramco and The Dow Chemical Company, to Sadara’s official inauguration last November by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, to today’s commercial operation of all plants at the Sadara complex.

"The petrochemical and chemical products from Sadara will further spur the kingdom’s industrial growth across multiple sectors, including automotive, construction, manufacturing, pharmaceuticals and consumer goods.”

Dow Chemical Company said last month that it has signed a memorandum of understanding which could take the company's equity stake in the giant complex up to 50 percent.

Speaking after signing the MoU last month, Dow's chairman and CEO Andrew Liveris said: “Increasing our equity stake in this iconic joint venture is a powerful example of our strategic partnership with Saudi Aramco and is yet another accelerator in Dow’s long-term growth strategy designed to capture growing consumer-led demand in our key end-markets of transportation, infrastructure, packaging, and consumer products in developing regions.”

© Zawya 2017