Sadara anticipates reduced TDI production at its plant in Al Jubail throughout the whole of Q4
Sadara Chemical (Jubail / Saudi Arabia; is evidently reckoning on reduced chlorine supplies for its TDI production until the end of the fourth quarter of 2020. According to local media reports, this joint venture between Dow (35%) and Saudi Aramco (65%) thus also expects a "significant" cutback in production at the 200,000 t/y plant, although no confirmation of this was received in response to an inquiry from This latest development is likely to further exacerbate the present limited supply of the isocyanate (see of 20.08.2020). As a result, the European TDI contract recently rose by EUR 210/t.

The main reason for the limited supply is the bleak economic outlook for the chlorine by-product caustic soda, the price of which is presently at rock-bottom. In the meantime, numerous facilities in this segment are being operated with reduced output – among other things for the intermediate product ethylene dichloride, which is of relevance for PVC production.

In its PU production according to's Polyglobe database (, Sadara can, in addition to TDI, call on capacities for 400,000 t/y of MDI as well as a polyether polyol line with 390,000 t/y. They are part of the total of 26 petrochemical plants around the mixed-feed cracker in Al Jubail, the last of which went on stream at the end of 2017 (see of 16.08.2017). Dow looks after global sales and marketing of the products outside the Middle East.

The consequences of the corona pandemic are also severely affecting the USD 20 bn (just under EUR 17 bn) joint project, and the pressure on margins is considerable. In 2020, Dow must probably inject USD 500m to service the debts. Over the rest of the year, the Sadara credits are to be restructured.

03.09.2020 [245842-0]
Published on 03.09.2020
TDI: Sadara muss Anlage in Al Jubail aus Chlormangel drosselnGerman version of this article...

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