Dow Chemical 2013 Annual Report Download - page 17

2013 Annual Report 15
Big Deal, Big Benefits
Sadara is a big deal with big benefits—supporting
job creation, economic diversification and
innovation globally.
• InSaudiArabia,ourinvestmentsaresupporting
thegovernment’svisiontoadvanceeconomic
progressbyenhancingjobopportunitiesfor
itsyoungpeople.Whencomplete,Sadarawill
employnearly4,000people.
• Inaddition,Sadara’sdiverseproductslateis
expectedtoattractdownstream,industrial
developmentopportunitiesthatwillfurtherdrive
innovationandjobopportunitiesintheKingdom.
• IntheUnitedStates,Sadara’sconstructionis
supportingthousandsofjobsandsmallbusinesses.
Awardedthe2013DealoftheYearbytheU.S.
Ex-ImBank,theprojectwascreditedforsupporting
morethan18,000Americanjobsinmorethana
dozenstates.
• Thesejobsareinadditiontothosebeingcreated
byourtotalU.S.GulfCoastconstructioneorts.
Atpeakconstruction,weestimateourGulfCoast
projectswillcreate6,000constructionjobsand
35,000relatedjobsinthebroadereconomy.
PERFORMANCE LDPE
USGC INVESTMENTS
Dow Packaging and Specialty
Plastics Market Sectors
SADARA
Dow Packaging and Specialty Plastics and
Performance Materials Market Sectors
• In2013,Sadarasecuredmainprojectnancing
ofapproximately$12.5billiontohelpfundits
constructionandstart-up.Thenancingincluded
a$5billiondirectloanfromtheExport-Import
BankoftheUnitedStates(Ex-ImBank)—the
largestauthorizationintheBank’shistory.
• Thelargestchemicalcomplexeverbuiltinasingle
phase,Sadarawillconsistof26manufacturingunits
andpossessexiblecrackingcapabilities.
Sadara’sproductslateisdrivenbydemandinkeyglobal
end-marketsinemergingregions.Thecomplexwill
producemorethan3millionmetrictonsofvalue-add
performanceplasticsandspecialtychemicalproducts
annuallytoservehigh-growthend-marketssuchas
packaging,electronics,coatings,transportation,oil
andgas,consumerdurables,hygieneandmedical,
infrastructureandwater.Dowwillberesponsiblefor
marketingSadara’sproductsoutsidetheMiddleEast—
approximately80percentofitsoutput.
Leading Brands Integrated to Low-Cost Feedstocks
p Sadara is expected to deliver annual revenues
to Dow of approximately $6 billion to $8 billion
within a few years of operation and achieve
average equity earnings of $500 million annually
during the first 10 years after its start-up.
$6–8B
Run-Rate
Investment Startup EBITDA
St. Charles
Ethylene Restart 2012 ~$250MM
PDH Propylene 2015 ~$450MM
Louisiana Ethane
Flexibility 2015 ~$250MM
USGC Ethylene &
Performance
Plastics Units
2017 ~$1.5B
Sadara 20152016 ~$500MM