Sadara Halts Production as Middle East Disruptions Hit Supply Chains

Saudi Arabia-based Sadara Chemical, a joint venture between Aramco and Dow, has temporarily suspended production at its integrated complex in Jubail due to ongoing supply chain disruptions linked to the Middle East conflict.

The company stated that operations will remain halted until conditions stabilize, with no clear timeline for a restart as the situation depends on both regional and global developments.

Shutdown Expected to Impact Financial Performance

Sadara has indicated that the production halt is likely to affect its financial performance this year. The uncertainty surrounding supply chains and logistics continues to create challenges for operations.

Major Capacity Affected

The Jubail complex includes significant production capacity:

• Ethylene: 1.5 million tons per year
• Propylene: 400,000 tons per year
• Polyethylene: 1.1 million tons per year

The shutdown of such a large facility is expected to add further pressure to already tight petrochemical markets.

Regional Supply Pressures Continue

The disruption comes as the broader conflict continues to impact feedstock availability, shipping, and logistics across the Gulf region.

Supply chains remain under strain, contributing to tighter market conditions and supporting higher prices across petrochemical products.

Market Outlook

With major production facilities affected and supply challenges persisting, the petrochemical market is expected to remain tight in the near term.

Further disruptions could continue to influence pricing and availability across global markets.

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