Alujain Corp. — Capital/Financing Update 2012

Jun 10, 2012

Alujain announces signing of a PP Compounding Joint Venture between NATPET and A.Schulman Inc.

2170 · 10/06/2012 08:52:39 · Announcement #26102 · View on Saudi Exchange

Alujain announces signing of a PP Compounding Joint Venture between NATPET and A.Schulman Inc.

Alujain announces that its subsidiary, National Petrochemical Industrial Company (NATPET), has entered in to a joint venture agreement with A.Schulman Inc. of the U.S.A on Saturday 19th Rajab 1433 H (corresponding to 9th June 2012).

The 50-50 joint venture will build a new plant for the manufacture and sale of polypropylene compounds at a site near NATPETs polypropylene facility in Yanbu, with a capacity of 100,000 tons per annum in two phases. The first phase of the project, estimated to cost SAR [266 million], will be funded 40% through equity and the remainder through debt from sources such as Saudi Industrial Development Fund (SIDF) and other local banks.

The joint venture will enable A. Schulman and NATPET to serve a broad range of customers globally, and capitalize on growing demand for durable goods such as appliances and automotives in the Middle East, Africa and India.

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. It will create employment opportunities for Saudis, and bring new technology to the Kingdom realizing the strategic objective of the Saudi governments cluster initiative.

In addition to the joint agreement, NATPET also agreed to enter into a distribution agreement where A. Schulman will, effective immediately, distribute resins for NATPET in Europe to specified customer segments.

Headquartered in Akron, Ohio, A. Schulman, Inc. is a leading global supplier of high performance plastics, master-batches, specialty powders, and distribution services. The companys customers span a wide range of markets such as packaging, consumer products, industrial and automotive, among others. The company employs about 3,100 people and has 36 manufacturing facilities globally.

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