LYB Broadens Core PP Business with 35% Stake in NATPET from Alujain in Saudi Arabia

LyondellBasell (LYB) and Alujain Corporation (Alujain) have announced the finalization of the purchase agreement, through which LYB has acquired a 35% stake in the Saudi Arabia-based National Petrochemical Industrial Company (NATPET) from Alujain.

Utilizing LYB Spheripol polypropylene (PP) technology, the joint venture allows LYB to strategically grow its core PP business, tapping into advantageous feedstocks and accessing increased product marketing volumes for profitable expansion.

LYB CEO Peter Vanacker expressed, "Our investment in NATPET underscores our dedication to enhancing and expanding our core operations while bolstering our footprint in Saudi Arabia through a fresh, enduring partnership. Collaborating with our esteemed partner Alujain, the joint venture will harness LYB's cutting-edge technology and global market leadership. This will ensure customers benefit from improved supply reliability through an expanded global operational and marketing network."

"We are delighted to reinforce our collaboration with LYB," stated Mohammed Bin Saleh AlKhalil, Chairman of Alujain. " We look forward to advancing our joint efforts to produce essential high-quality materials that fulfill the needs of our customers, both locally and globally. This investment also represents a notable advancement in bolstering the propylene downstream sector in the Kingdom of Saudi Arabia, in complete harmony with the objectives outlined in the Kingdom of Saudi Arabia's Vision 2030, as well as the strategies of the Ministry of Energy and Ministry of Industry."

Currently, NATPET boasts an annual PP production capacity of around 400,000 tons. The majority of the joint venture's production volume will be marketed by LYB through its extensive global network. Alujain and LYB are collaboratively evaluating the potential construction of a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, pending a final investment decision. The project aims to focus on high-end products and implement solutions in accordance with the Kingdom of Saudi Arabia's 2060 Carbon reduction strategy.

LyondellBasell (NYSE: LYB) is a frontrunner in the global chemical industry, dedicated to crafting solutions for sustainable everyday living. Leveraging advanced technology and strategic investments, LYB facilitates the transition toward a circular and low-carbon economy. Their endeavors are geared towards unlocking value for customers, investors, and society as a whole. As one of the largest producers of polymers worldwide and a pioneer in polyolefin technologies, LYB designs, manufactures, and markets top-tier, innovative products. These products cater to diverse applications, spanning from sustainable transportation and food safety to clean water and healthcare.

Established in 1991, Alujain Corporation was founded with the aim of enhancing the value of Saudi Arabia's natural hydrocarbon and mineral reserves. It operates as a listed Saudi joint stock company with its headquarters located in Riyadh, Kingdom of Saudi Arabia. Alujain's primary strategic goals involve identifying, evaluating, promoting, developing, and investing in significant industrial projects across various sectors including petrochemicals, mining, metals, and energy. The company is dedicated to generating value for its shareholders by leveraging local strengths, talents, resources, and adhering to the highest standards of national, social, and environmental responsibility.