Sadara and Juffali Sign Multi-Year “BTG” Supply Agreement Following Successful “MDI” Agreement

Sadara Chemical Company and E. A. Juffali & Brothers, a privately-owned Saudi company, have signed a second supply agreement, this time for Butyl Tri-Glycol ether (BTG), following the successful execution of an MDI supply agreement in July 2015. With this new agreement, Sadara will supply BTG to one of the new plants that will be built in the planned Juffali chemical production complex to be based among other plants in PlasChem Park in Saudi Arabia’s Jubail Industrial City II. 

The new Juffali complex will consist of several manufacturing plants designed to produce highly differentiated chemicals and products slated for use in the Kingdom of Saudi Arabia’s various industries. Some of the plants will receive a direct feed of Sadara’s products, namely the MDI plant and the BTG plant that have been announced thus far, while other plants will rely on raw materials provided by other suppliers.  

The PlasChem Park where the new Juffali complex will reside, among other downstream manufacturers, is adjacent to the Sadara Chemical Complex and covers a 12km2 area.  It is a unique industrial platform and a collaborative effort between the Royal Commission for Jubail and Yanbu (RCJY) and Sadara, and is positioned for the development of new value added downstream manufacturing and business opportunities. 

“One of our objectives at Sadara is to encourage and drive collaboration with local industries with the aim of developing the downstream chemical business. This BTG supply agreement is yet another milestone achievement between Sadara and Juffali. The Juffali BTG project will produce auto brake fluids to meet the local and regional demand, and can reduce or even eliminate the import of these products and enhance the value derived from chemical production in the local economy. The products from the MDI and the BTG plants are well positioned to serve the evolving auto manufacturing industry in the Kingdom. Additionally, the brake fluid production from the BTG plant will cater to the auto industry’s after-market needs in Saudi Arabia and the rest of the MENA region,” said Mohammad Alazzaz, Director of Value Park at Sadara.

“PlasChem Park will be a differentiated industrial platform to serve the Kingdom’s downstream manufacturing sector in key value chains based on Sadara’s state of the art technologies. Our products, many of which will be introduced to the region for the first time, will enable important applications in a number of key industries, support the local economies and reduce the need to rely on imports for essential products,” concluded Alazzaz

The Juffali BTG project will encompass several specialty chemical products and includes production of about 5,000 tons / year of different grades of premium brake fluids. It will be the first brake fluid production unit in the Middle East and North Africa and will supply the Middle East’s growing demand for these products, replacing imports. This Project is almost totally dependent on raw material from Sadara and its location is most advantageous. Juffali will license state of the art technology, process design and engineering advisory to complete its project, and the resulting brake fluid products will serve OEM, related accounts, aftermarket and commercial transportation customers. 

E. A. Juffali & Brothers is a diversified Saudi based company established in 1946.  Its interests span a number of markets including Electrical Contracting, Information Technology, Engineering, Automotive, Chemicals, Construction, Equipment, Services and Domestic Appliances. The new BTG and MDI facilities together aim to address the Kingdom’s safety issues through the production of safety products for the auto industry, further enhance the local production of Auto parts in the Kingdom, and encourage the growth of the Kingdom’s downstream Industries.

PlasChem Park is expected to attract diversified investments for downstream applications such as oil and gas chemicals, construction materials, paints and coatings, as well as home and personal care products. These investments will create new jobs for Saudi nationals as well as contribute to the fulfillment of the Government’s vision to diversify the Kingdom’s economy.