- Technology-enabled JV increases LYB access to advantaged
feedstocks and attractive markets
- Transaction encompasses existing assets and planned growth
projects
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.
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