Dow Inc. is evaluating an exit from its 35% stake in Sadara Chemical Co. This joint venture with Saudi Aramco is valued at $20 billion. The Saudi Arabian complex operates 26 manufacturing units. Annual production capacity at the site exceeds 3 million metric tons.
The divestiture aims to reduce Dow’s exposure to Sadara’s debt. This move would free up capital for strategic priorities during a corporate restructuring.
The chemicals industry currently faces persistent margin pressures and sector-wide headwinds. Market skepticism regarding Dow’s growth is reflected in its low Price-to-Sales ratio.