Aramco-Dow joint venture Sadara Chemical halts production amid supply chain disruptions

01/04/2026 04:02 AST

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."


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