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HOUSTON and RIYADH, Saudi Arabia, Jan. 16, 2024 /PRNewswire/ -- LyondellBasell (LYB) today announced it entered into an agreement to acquire a 35% interest in Saudi Arabia–based National Petrochemical Industrial Company (NATPET) from Alujain Corporation (Alujain) for approximately $500 million. Enabled by its Spheripol polypropylene (PP) technology, the joint venture positions LYB to grow and upgrade its core PP business through access to advantaged feedstocks, plus additional product marketing capacity, in a strategic region.
Closing of the transaction is subject to regulatory and other customary closing conditions. Alujain and LYB are also assessing together potential 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 studied with a shared goal to implement solutions that align with the Kingdom of Saudi Arabia's 2060 carbon reduction strategy.
Alujain is a petrochemicals, energy, mining and metals company in the Kingdom of Saudi Arabia. As majority owner of NATPET, the company is a longtime licensee of LYB Spheripol PP technology, one of the solutions it uses to operate a propylene and PP complex in Yanbu Industrial City. NATPET currently has an annual PP production capacity of approximately 400,000 tons.
"This investment in NATPET reflects our strategy of growing and upgrading our core around assets and businesses with lasting advantages," said LYB CEO Peter Vanacker. "We are pleased to invest in this joint venture, which leverages LYB's technology, leading global market positions and Alujain's proven operational excellence. We expect the joint venture will add value both through our ownership interest, as well as marketing of the products in key regions."
"We welcome the opportunity to deepen our ties with LYB, first as licensee and now as joint venture partner," said Alujain Chairman Mohammed Bin Saleh AlKhalil. "We look forward to advancing our collective efforts to produce and market essential materials that serve our customers' needs across the globe. This new investment is a great step forward for developing the downstream sector in the Kingdom of Saudi Arabia, and Alujain has plans to drive these developments further."
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, receipt of required regulatory approvals or the expiration of applicable waiting periods; the satisfaction of closing conditions; our ability to complete the transaction described in this release within the time period suggested; 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, 2022, 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.
