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Aramco-Dow joint venture Sadara Chemical halts production over Middle East turmoil
Reuters· 2026-03-31 07:20
Core Viewpoint - Sadara Chemical Company, a joint venture between Saudi Aramco and Dow, has temporarily halted production due to ongoing supply chain disruptions linked to regional turmoil in the Middle East [1][3]. Group 1: Company Operations - Sadara Chemical operates a facility in Jubail, Saudi Arabia, with an annual production capacity exceeding 3 million metric tons of chemicals and plastics [2]. - The suspension of production was communicated through a regulatory filing by Sadara Basic Services, which is responsible for issuing Islamic bonds for the parent company [2]. Group 2: Impact of External Factors - The company has stated that it cannot currently estimate when production will resume, as this is dependent on both domestic and international factors [3]. - The ongoing conflict in the region, particularly the month-long war involving Iran, has disrupted energy supplies and poses a threat to the global economy, impacting Sadara's financial results for the year [3].