LyondellBasel (LYB) announced the acquisition of a 35% stake in Saudi Arabia’s National Petrochemical Industries Company (NATPET) from Alujain for approximately $500 million.
Powered by Spheripol polypropylene (PP) technology, the joint venture will enable LYB to gain access to advantageous feedstocks and additional product marketing capabilities in strategic locations to grow and enhance its core PP business.
The transaction is subject to regulatory and other customary closing conditions. In addition, Alujain and LYB are jointly evaluating the possibility of establishing a new propane dehydrogenation (PDH) and PP facility at the NATPET facility, but a final investment decision is still pending. The common goal of the project’s research is to implement solutions that are in line with the Kingdom of Saudi Arabia’s 2060 Carbon Reduction Strategy.
Alujain is a petrochemical, energy, mining and metals company in the Kingdom of Saudi Arabia. As a majority shareholder in NATPET, Alujain is a long-standing licensee of LYB Spheripol PP technology, one of the solutions used by Alujain to operate its propylene and PP plant in Yanbu Industrial City. At present, NATPET’s annual PP production capacity is about 400,000 tons.
LYB chief executive officer Peter Vanacker said the investment in NATPET exemplifies LYB’s strategy to develop and upgrade its core business around assets and businesses with enduring advantages. LYB is excited to invest in this joint venture, leveraging LYB’s technology, leading global market position and Alujain’s proven operational excellence.
Mohammed Bin Saleh AlKhalil, Chairman of Alujain, said he was pleased to have the opportunity to deepen the relationship with LYB, from licensees to joint venture partners. We look forward to working together to produce and sell basic materials that meet the needs of our customers around the world. This new investment is a major step forward in the development of downstream industries in the Kingdom of Saudi Arabia, and Alujain plans to further promote these developments.
