LyondellBasell, a global chemical firm, is set to acquire a 35 percent stake in the National Petrochemical Industrial Company (NATPET) based in Saudi Arabia, in a deal valued at approximately $500 million. This acquisition from Alujain Corporation aims to position LyondellBasell for growth and enhancement of its core polypropylene (PP) business. The joint venture offers strategic advantages, including access to advantageous feedstocks and additional product marketing capacity in a key region.

The completion of the transaction is contingent upon regulatory approvals and other customary closing conditions. This investment aligns with LyondellBasell's overarching strategy of expanding and improving its core assets and businesses with enduring advantages.

LyondellBasell and Alujain are also exploring the possibility of constructing a new propylene via propane dehydrogenation (PDH) and PP facility at the NATPET site, pending a final investment decision. The collaborative project reflects a shared objective to implement solutions that align with Saudi Arabia's 2060 carbon reduction strategy.

Alujain, established in 1991, identifies itself as a petrochemicals, energy, mining, and metals company in Saudi Arabia. As the majority owner of NATPET, Alujain has been a longstanding licensee of LYB Spheripol PP technology. This technology is instrumental in operating a propylene and PP complex in Yanbu Industrial City. Alujain's strategic goals encompass identifying, evaluating, promoting, developing, and investing in major industrial projects across various sectors, including petrochemicals, mining, metals, and energy.

NATPET, founded in 2009, boasts an annual PP production capacity of around 400,000 tons. The Yanbu plant produces a diverse range of polypropylene product mixes suitable for various applications.

In a related development, Ineos announced in December 2023 its intention to acquire LyondellBasell's Ethylene Oxide & Derivatives business and production facility in Bayport, Texas, for $700 million. The acquisition is set to include the transfer of all current employees on the LyondellBasell Bayport Underwood Site, as well as some offsite workers, to Ineos upon completion of the transaction. The closing of the acquisition is anticipated in the second quarter, subject to regulatory and other third-party approvals.

Established in 2009, NATPET possesses an annual production capacity of about 400,000 tons of polypropylene (PP). The Yanbu facility of NATPET manufactures a diverse array of polypropylene product blends tailored for a broad spectrum of applications.

LYB characterizes itself as a frontrunner in the worldwide chemical industry, dedicated to "creating solutions for everyday sustainable living." It stands as one of the largest producers of polymers globally and is at the forefront of polyolefin technologies. Headquartered in Rotterdam, the company is engaged in the development, manufacturing, and marketing of products that cater to a wide range of applications. These applications span sustainable transportation and food safety to clean water and high-quality healthcare.