NATPET, A Schulman build PP compounding unit in Saudi Arabia

11 June 2012 04:31  [Source: ICIS news]

Polypropylene is used in the manufacture of food packaging and containersSINGAPORE (ICIS)--Saudi Arabia’s National Petrochemical Industrial (NATPET) and the US’ A Schulman plan to build a 100,000 tonne/year polypropylene (PP) compounding unit in Yanbu, said the Saudi firm’s parent company, Alujain, over the weekend.

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 India,” Alujain said.

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 Europe to specified customer segments, effective immediately, Alujain said.

A Shulman is a global supplier of high performance plastics, master-batches, specialty powders, and distribution services. It has a 3,100-strong workforce and 36 manufacturing facilities globally.

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)

By: Pearl Bantillo
+65 6780 4359

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