Alujain Corporation has signed an agreement with Basell International Holdings, a subsidiary of LyondellBasell Industries, to sell a 35 percent equity stake in its subsidiary, National Petrochemical Industrial Company (NATPET) for a value of $500 million (1.87 billion Saudi Riyals).
According to the statement, “The agreement outlines Basell’s acquisition of a 35 percent stake in Alujain National Company for Industries (under development), focused on establishing a petrochemical complex with an investment cost of approximately (SAR 7.5 billion).”
This agreement is poised to make a substantial contribution to the realization of Saudi Vision 2030 goals, aiming to maximize added value to the national economy within the sector. The project is expected to play a crucial role in producing local specialty plastics, aligning with localization plans for the automotive, electronics, pipes, batteries, and construction industries.
This partnership follows the Ministry of Energy’s approval for the allocation of necessary feedstock to establish the new Alujain Company project. The project includes a propylene production plant, a polypropylene production plant, and a complex for the production of compounds and specialized materials from polypropylene, marking a significant milestone as these will be produced for the first time in the Kingdom.
Additionally, the plan involves linking the two production units at the National Petrochemical Industries Company with the new company project to enhance the reliability, production efficiency, and overall economic performance of both projects.
According to the statement, “The two companies signed another agreement under which Basell International Holdings will enter a strategic partnership with NATPET with a 35 percent stake in the company’s capital.”
The partnership also included the signing of a contribution agreement between the two partners, a product marketing and sales agreement, a product allocation agreement, a new project management agreement, and an internal cost management agreement for the new project.
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