The National Petrochemical Industrial Co. (NATPET) has signed a deal with a US company for a 50-50 joint venture to produce polypropylene (PP) products, the Saudi Press Agency reported.
The new plant, to be located near NATPET facilities in Yanbu industrial city, will produce 100,000 tons of PP products per year which is to be split into two phases, according to the SPA.
The first phase of the project will cost SR 266 million, 40 percent to be funded from NATPET sources.
Saudi Industrial Development Fund (SIDF) and other local banks will finance next phase.
The joint venture will allow them to service a wide range of customers globally and take advantage of growing demand on such products used in the manufacture of household appliances, auto and furniture industry to the Middle Eastern, African and Indian subcontinent markets, the agency said quoting a press release.
The project will, hopefully, create more job opportunities for Saudi nationals and bring modern technology to the Kingdom, it said.
According to a separate deal, the US company will market NATPET products in Europe to a selected group of customers.
It is to be recalled that NATPET is a Saudi joint stock company and was established in 1999 and producer of 400,000 metric tons of propylene/polypropylene per year.
Alujain, Xenel and GOSI are the major stockholders.
NATPET, US firm ink deal for polypropylene joint venture
