Saudi industrial group Alujain Corporation is in the final stages of negotiations to enter into a strategic partnership with a global player in the propylene and polypropylene industry.

The move seeks to transfer the required technologies and advanced knowledge capabilities for a new project, including developing specialised products with high returns, the Saudi-listed firm said in a statement to the Saudi stock exchange.

Additionally, Alujain accelerated engineering works for a new factory to produce propylene, polypropylene and other specialised products. The new plant will be integrated with the existing factory of National Petrochemical Industrial Company to maximise the value of the investment in the two companies.

In November 2022, Alujain Corporation had announced that it received the Ministry of Energy's nod on feedstock allocation for establishing a new petrochemicals project in Yanbu Industrial City at a total cost of 7.5 billion Saudi riyals ($2 billion).

(Writing by D Madhura; Editing by Anoop Menon)