$500 Million! LyondellBasell Acquires 35% Stake in Saudi Arabia's National Petrochemical Industrial Co.

LyondellBasell announced on the 16th that it has reached an agreement to acquire a 35% stake in the National Petrochemical Industrial Co. (NATPET) of Saudi Arabia from Alujain Corporation for approximately US$500 million.

Leveraging LyondellBasell's Spheripol polypropylene technology, the company has access to advantageous feedstocks in strategic regions and additional product marketing capabilities to grow and upgrade its core polypropylene business.

Alujain and LyondellBasell are also jointly evaluating the consideration of new propane dehydrogenation propylene (PDH) and polypropylene facilities at the NATPET site, subject to a final investment decision. The common goal of the project is to achieve Saudi Arabia’s 2060 carbon emission reduction strategy.

Alujain is a Saudi Arabian petrochemical, energy, mining and metals company. As NATPET's majority shareholder, the company has a long-term license to use LyondellBasell's Spheripol polypropylene technology to operate the propylene and polypropylene complex in Yanbu Industrial City. NATPET's current annual polypropylene production capacity is approximately 400,000 tons.

Peter Vanacker, CEO of LyondellBasell, said: "This investment reflects our recognition of NATPET's assets with enduring advantages and LyondellBasell's strategic thinking around business development and core business upgrades. We are excited to invest in this joint venture, which brings together LyondellBasell's technology, global market leadership, and Alujain's proven operational excellence." NATPET will drive value through our ownership interests and product marketing capabilities in key geographies."

Mohammed Bin Saleh AlKhalil, Chairman of Alujain, said: “We take this opportunity to deepen our relationship with LyondellBasell, first as a licensee and now as a joint venture partner , we look forward to working together to advance the development, production and sales of essential materials that meet the needs of global customers. This new investment is a major step forward in developing the downstream industry in Saudi Arabia, and Alujain will further assist in promoting this development trend."

The transaction will proceed after regulatory review and customary closing conditions.