LyondellBasell acquires 35% stake in Saudi NATPET from Alujain

LyondellBasell (LYB) and Alujain Corporation (Alujain) announced today that LYB has acquired a 35% stake in Saudi National Petrochemical Industries (NATPET) from Alujain.

The joint venture, which uses LYB Spheripol polypropylene (PP) technology, enables LYB to expand the profitability of its core PP business through access to superior feedstock and additional product marketing volumes.

Peter Vanacker, CEO of LYB, said: "This investment in NATPET reflects our commitment to grow and upgrade our core business and strengthen our presence in Saudi Arabia through a new long-term partnership. In collaboration with our strategic partner Alujain, the joint venture will fully leverage LYB's leading technology and global market position. Customers will enjoy greater supply reliability through a larger global operation and marketing network."

Mohammed Bin Saleh AlKhalil, Chairman of Alujain, said: "We are very pleased to strengthen our cooperation with LYB. We look forward to continuing to work together to produce the necessary high-end materials to meet the needs of our local and global customers. This investment also marks an important step in the Kingdom of Saudi Arabia's efforts to strengthen the downstream propylene industry, fully in line with the Kingdom of Saudi Arabia's Vision 2030, the Ministry of Energy and the Ministry of Industrial Strategy."

Currently, NATPET has an annual PP production capacity of approximately 400,000 tons. LYB will sell most of the joint venture's products through its global network.

Alujain and LYB are also jointly evaluating the construction of a new propane dehydrogenation propylene (PDH) and PP facility at the NATPET plant, subject to a final investment decision.

The joint goal of the project is to target high-end products and implement solutions that are in line with the Kingdom of Saudi Arabia’s 2060 carbon reduction strategy.