Sadara Chemical, Juffali ink MDI supply deal

Sadara Chemical Co. inked a multi-year agreement to supply methylene diphenyl diisocyanate (MDI) to the new facility of E. A. Juffali & Brothers, located in PlasChem Park, Jubail Industrial City II, Sadara said in a statement.

The Saudi-based Juffali facility will consist of several manufacturing plants designed to produce different chemicals and products, which will be used in various local industries.

Sadara will supply some plants with a direct feed, while others will rely on raw materials provided by other suppliers.

The new facility is expected to go online in the first half of 2017. It will enhance Juffali’s chemicals portfolio and help encourage the growth of the Kingdom's downstream industries.

"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," said Mohammad Alazzaz, director of Value Park at Sadara.

PlasmChem Park was cofounded by Sadara and the Royal Commission for Jubail and Yanbu (RCJY). The 12 km2 site is located next to Sadara’s new manufacturing complex and will deliver a full range of value-added performance products.