Natpet, A Schulman JV polypropylene plant in Saudi Arabia

Natpet, A Schulman JV for polypropylene plant in Saudi Arabia

9:52 AM, 13th June 2012
Natpet, A Schulman JV for polypropylene plant in Saudi Arabia

YANBU, SAUDI ARABIA: Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, has entered into a joint venture agreement with A Schulman of the US to produce polypropylene compounds. The 50-50 joint venture, expected to be named Natpet-Schulman Engineering Plastic Compounds, is planning to build a polypropylene compounding plant in Yanbu, where it expects to begin production by the end of 2014.

A Schulman’s initial equity investment in the relationship is approximately €11 million ($14 million). Initial project costs, including construction of the facility, infrastructure needs as well as working capital requirements are approximately €55 million ($70 million) based on current exchange rates. The joint venture will manufacture a line of customer-preferred engineered plastic compounds based on A Schulman’s highly regarded technology.

Natpet, a well-established petrochemical producer in the region, will provide the joint venture with its regional infrastructure as well as its high-quality polypropylene resin. “The project supports the Saudi government’s programme in developing downstream projects and adding value to the intermediary petrochemical production in the kingdom. It will create employment opportunities for Saudis and bring new technology,” said Jamal Malaikah, President, Natpet.

© WOC News



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