Saudi Arabia’s Alujain to accelerate chemicals project work

11 April 2023

Saudi Arabia-based industrial group Alujain Corporation intends to accelerate work on its planned project to develop a new petrochemicals facility.

In a stock exchange filing published on 10 April, it said it would improve its business through “accelerating work on the development of engineering works and then the construction and operation of the company’s new factory to produce propylene, polypropylene and other specialised products”.

Under current plans, the facility will produce petrochemical products “in an integrated manner” with an existing factory run by National Petrochemical Industrial Company (Natpet) to maximise the value of investment in the two companies.

Alujain has a majority stake in Natpet, owning more than 19.9 million shares, and it is planning to increase its ownership of the company, according to its latest statement.

In 2020, Maire Tecnimont completed a project to upgrade Natpet’s existing polypropylene facility in Saudi Arabia’s Yanbu Industrial City.

Alujain is also looking to improve its business by “completing the negotiation work to enter into a strategic partnership with a leading global partner in the propylene and polypropylene industry”, according to its latest statement.

The planned partnership is designed to “transfer the required technologies and advanced knowledge capabilities for the new project”, the company said.

This transfer will include the technologies and knowledge to develop “specialised products with high returns”, according to the statement.

In November 2022, Alujain Corporation announced that it had received approval from Saudi Arabia’s Ministry of Energy for feedstock allocation to establish a new petrochemicals project in Yanbu Industrial City at a total cost of SR7.5bn ($2bn).

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Wil Crisp
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