Sadara Chemical Plant in Saudi Arabia Temporarily Halts Production Due to Ongoing Supply Chain Disruptions

Sadara, the joint venture between Saudi Aramco and U.S.-based Dow Chemical, confirmed on March 31 that its large petrochemical complex in Jubail, Saudi Arabia, has suspended production due to ongoing global supply chain disruptions.

The announcement was issued by Sadara Basic Services Company, a subsidiary that issued Islamic bonds on behalf of its parent company. According to a statement cited by Reuters, the company currently cannot determine when operations will resume, emphasizing that the timeline will depend on a range of internal and external factors.

Sadara operates a major industrial facility in Jubail with an annual production capacity of over 3 million tons of chemicals and plastics. This shutdown is expected to negatively impact the company's financial performance for the current year.

This production disruption occurred amid rising regional instability. A war involving Iran that lasted a month has spread across the Middle East, seriously affecting energy supply routes and raising concerns about broader impacts on the global economy. In response to attacks by the United States and Israel, Tehran has launched retaliatory attacks on regional infrastructure and maritime shipping, further complicating supply chains and industrial operations.