Sadara Chemical Company, a joint venture between Saudi oil ​giant Aramco and US chemicals firm ‌Dow, has announced that it has temporarily shut down production at its parent-operated plant, citing ongoing supply chain disruptions.

Sadara Chemical operates ​a complex in the Saudi city ⁠of Jubail with annual production ​capacity of over 3 million metric tons ​of chemicals and plastics.

The shutdown comes as the conflict involving Iran, the US and Israel continues to resonate across the Middle East, disrupting supply chains, constraining the movement of feedstock and finished products, and heightening risks to critical energy and industrial infrastructure.

The suspension was announced in a regulatory filing by Sadara ⁠Basic Services, which ‌issues Islamic ‌bonds for its parent.

The escalation has added pressure on petrochemical producers in the Gulf, where operations are closely tied to regional logistics networks and export routes.

Earlier, Sadara Chemical had reported a wider net loss for 2025, hit by lower sales volumes, weaker prices and operational disruptions. The net loss widened to SAR5.79 billion ($1.54 billion) over the 2024 figures of SAR4.15 billion ($1.1 billion).

Announcing the results for the 12-month period ended December 31, 2025, Sadara Basic Services Company said its parent company's revenue fell 14.8% to SAR9.87 billion, mainly due to reduced sales volumes, following unplanned operational events and extended maintenance activities that disrupted production. 

Lower average selling prices across parts of the product portfolio also weighed on revenue, thus taking the total comprehensive loss to SAR6.12 billion, stated the company in its bourse filing.

Gross loss deepened to SAR2.56 billion from SAR1.04 billion, while operating loss widened to SAR2.87 billion.

The company said higher fixed costs linked to operational disruptions and maintenance further pressured margins, it added.-TradeArabia News Service