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New polypropylene plant for Saudi Arabia

National Petrochemical Industrial Company (Natpet) has signed a deal with US firm A.Schulman Inc to form a joint venture to produce polypropylene (PP) products in Saudi Arabia

The 50:50 joint venture will build a new plant, to be located near NATPET facilities in Yanbu Industrial City. It will have a capacity of 100,000 tonnes of PP products per year, which is to be split into two phases.

The plant is expected to come on-stream in the Q4 of 2014.?

The first phase of the project will cost US$71 million, 40 per cent to be funded by NATPET and the remainder through sources such as Saudi Industrial Development Fund (SIDF) and other local banks.

The joint venture will not only manufacture polypropylene compounds, but will also sell the products. The venture will develop value-added products for the local market, by providing the key ingredients to manufacture auto and appliance parts in the kingdom,?as well as create employment opportunities for Saudi Arabian nationals.

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