Riyadh – Mubasher: Sadara Chemical Company (Sadara) and Saudi National Automobiles Manufacturing Company (SNAM) announced signing a cooperation agreement for SNAM’s planned Automobile Manufacturing Cluster in PlasChem Park.
“This is an exciting partnership for us as it will help drive development of an emerging sector within Saudi Arabia’s downstream manufacturing industry,” Ziad Al-Labban, CEO of Sadara, said.
Under the agreement, Sadara will work with SNAM’s Auto Cluster tenants, including automobile parts manufacturing companies, and identify potential third-party investors who are able to utilise Sadara’s slate of specialist chemicals and plastics products to manufacture automotive parts locally, according to press release.
The Auto Cluster stretches over more than 1 million square meters and is expected to be the largest manufacturing cluster to be located in PlasChem Park, an industrial zone located adjacent to the Sadara site in Jubail Industrial City II.
“In order to create a sustainable automotive industry ecosystem, SNAM researched local companies with operations related to automotive industry in order to activate Tier2 and Tier3 suppliers who can do business with international Tier1 suppliers," Fahd Al-Dohish, SNAM CEO, commented.
Al-Dohish added that another important aspect of SNAM’s plan is to utilise the local resources in manufacturing the automotive parts as much as possible
PlasChem Park is a 12-square kilometer industrial park in Jubail Industrial City II dedicated to downstream chemical and conversion industries and is a key element differentiating Sadara from other petrochemical, chemical and plastics manufacturing projects in Saudi Arabia, the statement said.
