ARLANXEO announces the planned construction of a 140 ktpa rubber plant in the Kingdom of Saudi Arabia
The Hague, May 23, 2023 – ARLANXEO is proud to announce the planned construction of a world-class rubber facility (the “Project”) in Jubail, Saudi Arabia. The 140 kiloton-per-annum (ktpa) plant will produce two high performance elastomers: Ultra High cis Polybutadiene (NdBR) and Lithium Butadiene Rubber (LiBR). The planned construction follows the final investment decision by Aramco and TotalEnergies to build a world scale petrochemical facility in Saudi Arabia (the ‘Amiral’ complex).
Olivier Thorel, Chairman of ARLANXEO’s Shareholders’ Committee and Senior Vice President of Chemicals at Aramco, said: “The planned construction of a 140 ktpa rubber plant in Saudi Arabia, integrated within SATORP’s Butadiene facility, underscores ARLANXEO’s drive to grow in a competitive market. With ARLANXEO’s unparalleled expertise in developing, producing and marketing high-performance synthetic rubbers, the strategic rationale for the Project is clear and compelling.”
CEO ARLANXEO, Donald Chen, said: “ARLANXEO is delighted to announce the planned expansion of its asset base to Saudi Arabia. The Project is an important part of our growth plans and is expected to reinforce ARLANXEO’s leadership position in high performance rubbers. This is the start of an exciting chapter for ARLANXEO and our employees, and we look forward to supplying our customers with reliable rubber from a world-class and highly competitive asset.”
Engineering, procurement, and construction contracts are scheduled to be awarded in the second half of 2023, with construction expected to commence in 2024, followed by commercial operations in 2027.
NdBR is predominately used in high performance tires, particularly in the tread area, due to its proven ability to improve fuel economy, influence grip and increase tire durability. NdBR is part of ARLANXEO’s sustainability drive. LiBR is mainly used for plastic modification applications to improve the impact resistance of products such as those used in the food packaging and household appliances industry.
ARLANXEO is one of the world's largest synthetic rubber producers and a wholly owned subsidiary of Aramco, one of the world’s leading integrated energy and chemicals companies. ARLANXEO develops, produces and markets high-performance rubbers with a presence at more than 12 production sites in 9 countries and 7 innovation centers around the world. Its products are used in a wide range of applications: from the automotive and tire industries to the electrical, construction, and oil and gas industries.
This news release may contain forward-looking statements based on current assumptions and forecasts made by ARLANXEO management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.