Alujain signs MoU for specialized engineering, manufacturing plastic compounds

Alujain plant

Alujain Corp. signed a memorandum of understanding (MoU) with Samvardhana Motherson International Ltd. (Motherson) for partnership in a complex for the manufacture of specialized engineering and manufacturing plastic compounds.

This represents an important step in the localization of specialized plastic compound industries to support spare parts industries, automotive and other specialized manufacturing industries, in line with the objectives of the Vision 2030 aimed at enhancing the local content of these industries, Alujain said in a statement to Tadawul.

The MoU was signed under the patronage of Minister of Industry and Mineral Resources Bandar   Alkhorayef, the statement added.

The MoU supports Alujain’s expansion plans to manufacture engineering plastics for the automobile and other specialized industries, with the aim of maximizing the added value of propylene products, enhancing the local content and global competitiveness of the manufacturing industries, and the sustainability of the company’s business.

Alujain aims to achieve these goals by entering into strategic partnerships with leading international companies and assisting in transferring knowledge to establish a product development and innovation center with advanced technical capabilities. The company also seeks to maximize the benefit from government programs available to local industrial companies, including knowledge, technical and financial support programs.

The duration of the MoU is two years. The financial impact cannot be determined yet, Alujain said, noting that it will announce any developments.

Motherson is a major international company that manufactures vehicles used in the manufacture of automobile parts and owns more than 300 factories in 41 countries around the world.

There are no related parties to the deal, Alujain said.