Saudi Energy Ministry allocates raw materials needed for ‎‎“Alujain” project at SR7.5 bln cost

Alujain Company announced that on November 3, 2022, it received a letter of approval from the Ministry of Energy to allocate the necessary materials for the construction of the new project in Yanbu Industrial City in the Kingdom of Saudi Arabia, which includes:

1. A propane gas processing plant (for the production of propylene).
2. Polypropylene production plant
3. A complex for the production of polypropylene compounds and specialized materials.

The new project, upon its completion, will produce more than 600,000 tons of polypropylene, polypropylene compounds, and specialized construction materials from propylene derivatives, in addition to about 25,000 tons of salable hydrogen annually.

The new project will also include linking the propylene and polypropylene production units of the company’s current project (National Petrochemical Industries Company “NATPET” – subsidiary) with the two production units in the new project with a unified network in order to raise the level of reliability and production efficiency and improve the economies of the two companies.

The total cost of the project is estimated at about 7.5 billion riyals (2 billion dollars), and it is expected that the start of operation will be in the first half of 2026.

The new project will 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 advanced knowledge capabilities for the new project, including the establishment of a model center for research and development of specialized products, including plastics and specialized plastic materials. To contribute to filling the needs of the local market, and to create future localization opportunities for specialized construction materials and plastic materials that are used in medical uses and the automotive and battery industries.

The new project, upon its completion, will produce more than 600,000 tons of polypropylene, polypropylene compounds, and specialized construction materials from propylene derivatives, in addition to about 25,000 tons of salable hydrogen annually.

The new project will also include linking the propylene and polypropylene production units of the company’s current project (National Petrochemical Industries Company “NATPET” – subsidiary) with the two production units in the new project with a unified network in order to raise the level of reliability and production efficiency and improve the economies of the two companies.

The total cost of the project is estimated at about 7.5 billion riyals (2 billion dollars), and it is expected that the start of operation will be in the first half of 2026.

The new project will 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 advanced knowledge capabilities for the new project, including the establishment of a model center for research and development of specialized products, including plastics and specialized plastic materials. To contribute to filling the needs of the local market, and to create future localization opportunities for specialized construction materials and plastic materials that are used in medical uses and the automotive and battery industries.