As part of a two-phase project, Saudi Arabia’s National Petrochemical Industrial Company (Natpet, Jeddah; www.natpetpp.com) has entered into a 50:50 polypropylene joint venture with US compounder and distributor A. Schulman (Akron, Ohio; www.aschulman.com), several news media report. While the start-up date of the 100,000 t/y PP compound plant – to be located in Yanbu / Saudi Arabia – remains unclear, the two companies said that phase one of the project would involve a SAR 266m (USD 70.9m) investment, of which Natpet will fund 40% while the remaining money would come from the Saudi Industrial Development Fund (SIDF; www.sidf.gov.sa) and local banks.

The new facility will be located next to Natpet’s existing PP complex in Yanbu, which has capacity to turn out 400,000 t/y according to Plasteurope.com’s Polyglobe capacity database (www.polyglobe.net). As part of the jv agreement, A. Schulman also undertook the distribution of Natpet’s resins in Europe.