Saudi Aramco’s JV with Lanxess to finalize by mid-2016: ICIS

Saudi Aramco’s elastomers and rubber joint venture is expected to close by mid-2016, upon obtaining regulatory approvals, ICIS has reported.

The joint venture with German chemical company, Lanxess, would be looking to invest in production in Saudi Arabia in future, Warren Wilder, a senior executive at Saudi Aramco, said on the sidelines of the 10th Annual Gulf Petrochemicals and Chemicals Association (GPCA) Forum in Dubai.

The JV is valued at 2.75 billion euros, and will likely give the two companies ownership rights during a five-year lock up period, ICIS said.

Saudi Aramco is to provide the joint venture with access to raw materials, while Lanxess would provide tire and specialty rubbers and high performance elastomers business units, including 20 production facilities in nine countries.

Last month, Lanxess and Saudi Aramco announced the JV agreement under which Lanxess would sell a 50 percent stake in its synthetic rubbers operations to the Saudi state oil and gas producer.