NATPET to see strong demand for PP in Q1 2025: Official

He highlighted that demand for the company’s products is also increasing in other GCC markets such as the UAE, Qatar, Oman, and Bahrain, as well as Egypt, where the company’s market share is growing.

However, ElBaradei highlighted several challenges facing the petrochemical sector, including rising shipping rates due to issues in the Red Sea and intense market competition.

NATPET’s plans align with Alujain’s expansion strategy, the official said, citing the upcoming NATPET 2 project, which will add 500,000 tons annually to production capacity by 2027-2028, marking an over 50% increase, essentially doubling the company’s current production.

Alujain’s manufacturing sector plans to double production lines in line with these expansions, with a focus on increasing polypropylene production. Further, the company seeks to develop new products to meet the growing demand in local and regional markets, particularly in the pipeline and infrastructure sectors.

Regarding the partnership with Basell International Holdings B.V., ElBaradei emphasized that Basell’s 50% stake in polypropylene production significantly improved the company’s operational and production capabilities, strengthening its competitive position in the market.

Additionally, Alujain's plants play a crucial role in the manufacturing sector, as they produce the polypropylene used in various industries, including automotive, home appliances, and pipes, as well as contributing to infrastructure projects.

In May 2024, Alujain announced the final sale of a 35% equity stake in NATPET to Basell, with SAR 1.86 billion deposited, according to data available with Argaam.