Dow Considering Exit from $20 Billion Saudi Petrochemical Venture
Dow is reportedly considering selling its 35% stake in the Sadara Chemical Company, a joint venture with Saudi Aramco valued at $20 billion. The potential exit aligns with Dow's broader strategy to streamline operations and improve profitability amid ongoing challenges in the global chemicals industry. Weak demand, overcapacity, elevated costs, and disruptions from the Middle East conflict have all contributed to pressure on petrochemical supply chains and operating expenses. Sadara, located in Jubail Industrial City, is one of the world's largest integrated chemical complexes with an annual production capacity exceeding 3 million metric tons. Dow reported a negative investment balance of $793 million for its stake as of June 30 and has suspended recognizing losses from the venture since early 2026.
Tickers: $DOW
Topics: Dow M&A petrochemicals Sadara Chemical Company Saudi Aramco