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Saudi Aramco becomes full owner of ARLANXEO

January 09/2019

MOSCOW (MRC) -- Saudi Aramco, a world-leading integrated energy and chemicals company, and Lanxes AG, a leading German specialty chemicals company, have announced the completion of Saudi Aramcos acquisition of Lanxess interest in ARLANXEO Holding B.V., a Netherlands-based specialty chemicals joint venture between Saudi Aramco and Lanxess launched in 2016, as per Saudi Aramco's press release.

All relevant authorities have granted approvals for the transaction which was first announced in August 2018.

Saudi Aramcos purchase of Lanxess' 50% share in ARLANXEO, valued at EUR1.5 billion on an enterprise value basis, makes it 100% owner of ARLANXEO, enabling further diversification of Saudi Aramcos downstream portfolio, and strengthening the companys capabilities across the energy and chemicals value-chain.

ARLANXEO is a world-class synthetic rubber and elastomer products company that supplies feedstocks to leading tire and auto-parts manufacturers around the globe. As a fully owned subsidiary of Saudi Aramco, ARLANXEO will accelerate development of growth opportunities integrating the strong feedstock position of Saudi Aramco.

In addition, full ownership of ARLANXEO will enhance Saudi Aramcos sustainability efforts to optimize tire performance-related fuel consumption in line with its efficient fuel/engine R&D strategy, which is focused on increasing fuel efficiency and reducing engine emissions. All of these efforts are well-aligned with Saudi Aramcos overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams.

Abdulaziz Al-Judaimi, Saudi Aramco Senior Vice President of Downstream, commented on the acquisition by saying: "ARLANXEO, now as a 100% owned Saudi Aramco subsidiary, represents an essential component to our global position in the chemicals market. Full ownership of ARLANXEO will further diversify Saudi Aramcos downstream portfolio and strengthen capabilities along the energy and chemicals value chains. I am positive about the upside and the future of product innovation that will serve our customers around the world."

As a wholly-owned subsidiary of Saudi Aramco, ARLANXEO will continue to serve the development, production, marketing, sale and distribution of specialty chemicals and synthetic rubber products, principally for the high-volume global tire and automotive industries. ARLANXEO will maintain its current base in Maastricht, the Netherlands.

As MRC wrote before, in March 2018, Arlanxeo signed an agreement with Saudi Aramco Products Trading company, headquartered in Dhahran, the Kingdom of Saudi Arabia, pertaining to the marketing and sales of EPDM rubber.

Arlanxeo was established in April 2016 as a joint venture of Lanxess - a world-leading specialty chemicals company based in Cologne, Germany - and Saudi Aramco - a major global energy and chemicals enterprise headquartered in Dhahran, Saudi Arabia. The two partners each hold a 50-percent interest in the joint venture. The business operations of Arlanxeo are assigned to the High Performance Elastomers and Tire & Specialty Rubbers business units.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.


mrcplast.com
Author:Margaret Volkova
Tags:propylene, ethylene, car components, natural rubber, Arlanxeo (Lanxess), Lanxess, Saudi Aramco.
Category:General News
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