LyondellBasell announces US$500M acquisition of stake in NATPET

SAUDI ARABIA – LyondellBasell (LYB) has agreed to acquire a 35% stake in Saudi Arabia’s National Petrochemical Industrial Company (NATPET) from Alujain Corporation (Alujain) for approximately US$500 million.

Empowered by its Spheripol polypropylene (PP) technology, this joint venture positions LYB to expand and enhance its core PP business by gaining access to advantageous feedstocks and additional product marketing capacity in a strategically significant region.

The completion of the transaction is subject to regulatory and customary closing conditions. Alujain and LYB are jointly evaluating the potential construction of a new propylene facility via propane dehydrogenation (PDH) and a PP facility at the NATPET site, contingent upon a final investment decision.

The project is being explored with a shared objective to implement solutions that align with the Kingdom of Saudi Arabia’s 2060 carbon reduction strategy.

Alujain, a company involved in petrochemicals, energy, mining, and metals in the Kingdom of Saudi Arabia, serves as the majority owner of NATPET.

It has been a long-term licensee of LYB’s Spheripol PP technology, utilizing it in its propylene and PP complex in Yanbu Industrial City. Currently, NATPET boasts an annual PP production capacity of approximately 400,000 tons.

LYB CEO Peter Vanacker expressed, “This investment in NATPET reflects our strategy of growing and upgrading our core around assets and businesses with lasting advantages.

“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 and marketing of the products in key regions.”

Alujain Chairman Mohammed Bin Saleh AlKhalil welcomed the opportunity to deepen ties with LYB, emphasizing their joint efforts to produce and market essential materials globally.

He sees this new investment as a significant step forward for developing the downstream sector in the Kingdom of Saudi Arabia, with plans to drive further developments.

In July of the previous year, the company acquired a 50% stake in recycling company Stiphout Industries, specializing in sourcing and processing post-consumer plastic packaging waste.

Stiphout Industries operates a facility in Montfort, with an annual processing capacity equivalent to the plastic packaging waste generated by over 500,000 Dutch citizens annually.

The company focuses on recycling Dutch household waste into clean PP and HDPE flakes, establishing itself as an innovative player in the Netherlands since its founding in 2013.

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