The project, a joint venture between Sahara and the state-run miner Saudi Arabian Mining Co (Maaden), will have a production capacity of 250,000t/y of high grade sodium hydroxide and 300,000 t/y of ethylene dichloride.

Preliminary work has begun for the project being developed using German UHDE technology, under the 34-month early work agreement.

The project will be financed through bank loans including a $240m loan from the Saudi Industrial Development Fund.

Work on the project is due to be complete in the fourth quarter of 2012, reports The Economic Times.