According to a bourse announcement on The Saudi Stock Exchange Tadawul on November 6, 2022, Alujain Corp. announces the receipt of feedstock allocation approval from the Ministry of Energy for the construction of a propane gas processing plant (to produce propylene), a plant for the production of polypropylene, and a complex for the production of polypropylene compounds and other specialty materials in Kingdom of Saudi Arabia.
The company is pleased to announce that it has received, on 3 November 2022, the receipt of feedstock allocation approval from the Ministry of Energy for the construction of the new project in Yanbu Industrial City, Kingdom of Saudi Arabia, which includes:
1. Propane gas processing plant (to produce propylene)
2. Plant for the production of polypropylene, and
3. Complex to produce polypropylene compounds and PP specialty materials
The new project, upon its completion, will produce more than 600,000 tons of polypropylene, polypropylene compounds, and specialized construction materials from Polypropylene derivatives, in addition to about 25,000 tons of salable hydrogen annually.
The new project will also include a grid for the propylene and polypropylene production units connecting the current company (National Petrochemical Industrial Company “NATPET” – subsidiary company) two processing plants with the two production units in the new project to increase reliability and efficiency and improve the economies of the two companies.
The total cost of the new project is estimated at about SR 7.5 billion (2 billion US dollars). It is expected to start operation in the first half of 2026.
The project will also include entering into a strategic partnership with a leading global partner in the propylene and polypropylene industry. This partnership will enable the transfer of required technologies and know-how capabilities for the new project, including the establishment of an R&D center for the specialty products (PP compounding and specialized plastic materials) which will contribute to meeting the needs of the local market, and create future localization opportunities for specialized construction materials and specialty plastic materials covering medical applications, automotive industry and batteries manufacturing.
With regard to the current development stage of the new project, the selection of the production technologies of the main units and the short-listing of the main companies participating in the EPC/M of the project has been completed, and work is underway to start engineering designs for the main production units. Any material development related to this project will be announced in accordance with the relevant regulations and instructions.
