11 June 2012 04:31 [Source: ICIS news]
NATPET and A Schulman have entered into a 50:50 joint venture for the project that will be built in two phases, Alujain said in a filing to the Saudi Stock Exchange (Tadawul) on 10 June.
The first phase of the project is estimated to cost Saudi riyal (SR) 266m ($71m), which will be funded via 40% equity and 60% debt, the company said.
The joint-venture PP compounding unit will be located near NATPET’s 400,000 tonne/year PP plant in Yanbu.
“The joint venture will enable A Schulman and NATPET to serve a broad range of customers globally, and capitalise on growing demand for durable goods such as appliances and automotives in the Middle East, Africa and
NATPET has also agreed to enter into a distribution agreement with A Schulman, in which the Ohio-based firm will distribute resins for NATPET in
NATPET is a subsidiary of Alujain, which is a Saudi joint stock company set up in 1991 by a group of prominent Saudi/Gulf businessmen, according to the company’s website.
($1 = SR3.75)
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