Home » Business News » 2012 » April » April 2, 2012

Linde to construct on-site plants for Sadara's major chemical complex in Saudi Arabia

April 2, 2012 - Munich, Germany

Linde AG /Linde to construct on-site plants for Sadara's major chemical complex inSaudiArabia.

Processed and transmitted by Thomson Reuters ONE.The issuer is solely responsible for the content of this announcement.

-- Total investment: USD 380 million
-- Contract opens up further growth opportunities in the Middle East

The technology group The Linde Group and Sadara ChemicalCompany (Sadara) recently signed a long-term contract that will see LindesupplySadara with carbon monoxide (CO), hydrogen (H(2)) and ammonia (NH(3)) at achemical complex now being built by Sadara in Jubail, Saudi Arabia, whichwillbe the world's largest chemical complex ever built in a single phase. Theon-site gases supply contract includes a HyCO facility for the productionof CO andH(2) plus an ammonia plant. Linde will be investing USD 380 million in theproject. Sadara, established in October 2011, is a joint venture developedbySaudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company(Dow).

"This contract is an excellent opportunity from several perspectives,"statesProfessor Dr Aldo Belloni, Member of the Executive Board of Linde AG. "ItisLinde's largest on-site petrochemical project in this region, and our firstinJubail. It thus strengthens our position as a global leader in thegenerationand supply of carbon monoxide for MDI and TDI production plants atintegratedchemical hubs. The petrochemical industry is expanding rapidly in SaudiArabia.We expect that this growth will give added momentum to the expansion of ourgases and engineering business in the Middle East."

Linde's Engineering Division will design, deliver and construct the newturnkeygases facilities at Sadara's site in the Jubail 2 petrochemical cluster.Thecompany will be building a two-stream HyCO plant, plus a single-streamNH(3)unit producing waterless liquid ammonia. Linde will also install a largeNH(3)storage tank, resulting in a sophisticated supply concept which willenable theplant to run smoothly and reliably at all times. The production units arescheduled to be ready in 2015. Once built, they will be operated by Linde'sGases Division. Linde is setting up a local gases company for on-sitesupport.

Sadara will use carbon monoxide, hydrogen and ammonia primarily for theproduction of aromatics, isocyanates (MDI and TDI), amines and hydrogenperoxide. Methylene diphenyl diisocyanate (MDI) and 2,4 toluenediisocyanate(TDI) are used in the production of polyurethanes - an essential componentinmany products ranging from synthetic fibres through insulating foam andadhesives to mattresses and car seats.

Sadara will construct, own and operate a world-scale integrated chemicalscomplex in Jubail Industrial City II in Saudi Arabia. Sadara will have adifferentiated product mix, most of which are produced locally for thefirsttime. This differentiation will create further growth opportunities forconversion and downstream industries in the adjacent PlasChem Park.

The Linde Group is a world-leading gases and engineering company witharound50,500 employees in more than 100 countries worldwide. In the 2011financialyear, it achieved sales of EUR 13.787 bn. The strategy of The Linde Groupisgeared towards long-term profitable growth and focuses on the expansion ofitsinternational business with forward-looking products and services. Lindeactsresponsibly towards its shareholders, business partners, employees, societyandthe environment - in every one of its business areas, regions and locationsacross the globe. The Group is committed to technologies and products thatunitethe goals of customer value and sustainable development.

For more information, see The Linde Group online at

Press Release as PDF:

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Linde AG via Thomson Reuters ONE


Further information:

Matthias Dachwald
Telephone: +49.89.35757-1333

Investor Relations
Lisa Tilmann
Telephone: +49.89.35757-1328

Stefan Metz
Telephone: +49.89.35757-1322


Comment on this story