Recently, Lyondell Basel announced that it will acquire a 35% stake in Saudi Arabia's National Petrochemical Industries Company from Alujain for about $500 million**. LyondellBasel said the move will give the company access to advantageous raw materials in strategic areas as well as additional product marketing capabilities to grow and enhance its core polypropylene (PP) business.
The transaction is subject to regulatory and other customary closing conditions. In addition, Alujain and Lyondell Basel are jointly evaluating the possibility of establishing a new propane dehydrogenation (PDH) and PP facility at a Saudi petrochemical industry facility, but a final investment decision is still pending. The common goal of the project's research is to implement solutions that are in line with Saudi Arabia's 2060 carbon reduction strategy.
Alujain is a petrochemical, energy, mining and metals company in Saudi Arabia and a majority shareholder in Saudi Petrochemical Industries. At present, the annual production capacity of PP in Saudi Arabia's petrochemical industry is about 400,000 tons.
Peter Vanacker, CEO of LyondellBasel, said the investment in Saudi Petrochemicals reflects LyondellBasel's strategy to upgrade around assets and business development with enduring advantages. LyondellBasel is excited to invest in this joint venture, leveraging the company's advanced technology, world-leading market position and Alujain's proven operational excellence.