Arlanxeo plans Saudi Arabian SR production plant

THE HAGUE, The Netherlands—Arlanxeo plans to build a 140,000-metric-ton synthetic rubber production plant in Jubail, Saudi Arabia.

The facility will produce neodymium-catalysed ultra-high cis-polybutadiene rubber (NdBR) and lithium butadiene rubber (LiBR), the company said in a May 23 press release.

Fully owned by Arlanxeo, the unit will be built at the Amiral complex—a $10 billion petrochemicals project, launched last December by Saudi Aramco and Total Energies.

Scheduled for commercial startup in 2027, the Amiral complex will be integrated with the petchem partner'' existing Satorp refinery in Jubail on Saudi Arabia's eastern coast.

The NdBR/LiBR plant will source butadiene feedstock from Satorp, according to Olivier Thorel, chairman of Arlanxeo's shareholders' committee and senior vice president of chemicals at Saudi Aramco.

Underlining Arlanxeo's "drive to grow in a competitive market," Thorel said the project would tap into its "expertise in developing, producing and marketing" synthetic rubbers.

The investment is part Arlanxeo's growth plan and would "reinforce" the company's position in markets for high-performance synthetic rubbers, added Donald Chen, CEO of Arlanxeo.

Engineering, procurement and construction contracts for the SR project are scheduled to be awarded in the second half of 2023.

Construction work is expected to commence in 2024, followed by the startup of commercial operations in 2027, according to Arlanxeo.

NdBR, it noted, is largely used in tires treads for enhanced fuel-economy, grip and wear, while LiBR is typically used as an impact-modifier in plastics packaging and appliances.