World chemical agency LyondellBasell (LYB) has accomplished its acquisition of a 35 % curiosity in Saudi Arabia–based mostly Nationwide Petrochemical Industrial Firm (NATPET) from Alujain Company.
The three way partnership is enabled by LYB Spheripol polypropylene (PP) expertise and positions LYB to profitably broaden its core PP enterprise by having access to advantaged feedstocks and extra product advertising volumes, the corporate mentioned in a information launch.
“This funding in NATPET displays our dedication to develop and improve our core companies and strengthen our presence in Saudi Arabia via a brand new long-term partnership,” mentioned LYB CEO Peter Vanacker. “With our strategic accomplice Alujain, the three way partnership will leverage LYB’s main expertise and international market positions. Clients will take pleasure in enhanced provide reliability via a bigger international operations and advertising community”.
“We’re more than happy to strengthen our partnership with LYB,” mentioned Mohammed Bin Saleh Al Khalil, Chairman of Alujain. “We look ahead to persevering with our joint efforts to provide important high-end supplies that serve our prospects’ wants domestically and throughout the globe. This funding as effectively marks a major stride towards enhancing the propylene downstream sector within the Kingdom of Saudi Arabia, in full alignment with the Kingdom of Saudi Arabia’s Imaginative and prescient 2030, Ministry of Power and Ministry of Trade Methods.”
NATPET has roughly 400,000 tons of annual PP manufacturing capability. LYB mentioned it plans to market the vast majority of the quantity of the three way partnership’s manufacturing via its international community. The acquisition was introduced in January, the place LYB mentioned the consideration for the transaction was $500 million.
Alujain and LYB are additionally collectively assessing the development of a brand new propylene by way of propane dehydrogenation (PDH) and PP facility on the NATPET web site, topic to a remaining funding resolution. The mission is being developed with a shared purpose of focusing on high-end merchandise, and implementing options that align with Saudi Arabia’s 2060 carbon discount technique, in response to the discharge.
Alujain, which was established in 1991, describes itself as a petrochemicals, vitality, mining and metals firm within the Kingdom of Saudi Arabia. As the bulk proprietor of NATPET, the corporate is a longtime licensee of LYB Spheripol PP expertise, one of many options it makes use of to function a propylene and PP complicated in Yanbu Industrial Metropolis. Alujain mentioned its primary strategic targets are to establish, consider, promote, develop and make investments/function main industrial initiatives within the petrochemicals, mining, metals, vitality sectors and different initiatives.
LYB describes itself as a pacesetter within the international chemical business “creating options for on a regular basis sustainable dwelling” and one of many world’s largest producers of polymers and a pacesetter in polyolefin applied sciences. The Rotterdam-based firm develops, manufactures and markets merchandise for purposes starting from sustainable transportation and meals security to scrub water and high quality healthcare.
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