HOUSTON and RIYADH, Saudi Arabia, May 30, 2024 /PRNewswire/ -- LyondellBasell (LYB) and Alujain Corporation (Alujain) today announced completion of the acquisition of a 35% interest in Saudi Arabia-based National Petrochemical Industrial Company (NATPET) by LYB from Alujain.
The joint venture is enabled by LYB Spheripol polypropylene (PP) technology and positions LYB to profitably expand its core PP business by gaining access to advantaged feedstocks and additional product marketing volumes.
"This investment in NATPET reflects our commitment to grow and upgrade our core businesses and strengthen our presence in Saudi Arabia through a new long-term partnership," said LYB CEO Peter Vanacker. "With our strategic partner Alujain, the joint venture will leverage LYB's leading technology and global market positions. Customers will enjoy enhanced supply reliability through a larger global operations and marketing network."
"We are very pleased to strengthen our partnership with LYB," said Mohammed Bin Saleh AlKhalil, Chairman of Alujain. "We look forward to continuing our joint efforts to produce essential high-end materials that serve our customers' needs locally and across the globe. This investment as well marks a significant stride toward enhancing the propylene downstream sector in the Kingdom of Saudi Arabia, in full alignment with the Kingdom of Saudi Arabia's Vision 2030, Ministry of Energy and Ministry of Industry Strategies."
NATPET currently has approximately 400,000 tons of annual PP production capacity. LYB will market the majority of the volume of the joint venture's production through its global network. Alujain and LYB are also jointly assessing the construction of a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, subject to a final investment decision. The project is being developed with a shared goal of targeting high-end products, and implementing solutions that align with the Kingdom of Saudi Arabia's 2060 Carbon reduction strategy.
About LyondellBasell
We are LyondellBasell (NYSE: LYB) - a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.
About Alujain Corporation
Alujain Corporation was established in 1991 with a view to adding value to Saudi Arabia's natural hydrocarbon and mineral resources. It is a listed Saudi joint stock company and its head office is in Riyadh, Kingdom of Saudi Arabia. Alujain's main strategic objectives are to identify, evaluate, promote, develop and invest/operate major industrial projects in petrochemicals, mining, metals, energy sectors and other projects, with a commitment to creating value for its shareholder by utilizing local strengths and talents, capacities, wealth and natural resources, also setting the highest standards of national, social and environmental responsibility.
Cautionary Note Regarding Forward-looking Statements
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, the final investment decision and the successful construction and operation of the proposed facilities described in this release; and our ability to implement our strategy and successfully align our asset base with that strategy. While these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2023, which can be found at www.LyondellBasell.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.
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