Dow Inc. is considering selling its 35% stake in Sadara Chemical Co., a joint venture with Saudi Aramco. The project has seen total investments exceeding $20 billion since its start. This potential exit comes amid a prolonged downturn in the chemicals sector caused by oversupply and weak demand.
The Sadara complex in Jubail, Saudi Arabia, produces over 3 million metric tons of chemicals and plastics per year. The venture has been operational since 2011, with commercial production beginning in phases around 2015.
Financial pressures are evident, as the Jubail complex used $80 million from a Dow-guaranteed revolving credit facility in the fourth quarter of 2025. This move aligns with Dow's broader strategy to trim its portfolio, which includes workforce reductions and asset reviews in Europe.
Following the news, Dow shares rose approximately 3-5% in premarket trading. While no final decision has been reached, Saudi Aramco could potentially increase its ownership or attract new strategic investors if Dow exits.