Alujain’s NATPET to get SAR 88.1 million from insurers

Alujain Corporation’s affiliate National Petrochemical Industrial Company (NATPET) has obtained approval of its insurance providers to get SAR 88.1 million in damages against shutting down of its plant for 19 days in February, 2013, the company said in a statement to the Saudi bourse, Tadawul.

The insurers will pay SAR 40 million for replacing the damaged equipments and SAR 48.1 million in compensation for the losses sustained from the drop in production. The latter sum will be reflected positively in the company’s 2nd quarter results.

Alujain, said that this compensation is in additional to the compensation it obtained in August last year for production disruption at NATPET in Sept. 2011.

The Jeddah-based Alujain owns 57.6 % of NAPTET.

NATPET operates a 400,000 tons a year propylene and polypropylene complex in Yanbu Industrial City, on the west coast of Saudi Arabia.