Saudi Aramco has completed its acquisition of a 50 percent stake in Arlanxeo, its Netherlands-based joint venture with chemicals firm Lanxess, to become the full owner of the company, it said in a statement on Monday.
Lanxess’s share in the synthetic rubber and elastomer products venture was valued at EUR1.5 billion, Aramco said.
The project will enhance Aramco’s 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 Aramco’s overarching downstream aspiration to drive value by expanding and integrating its portfolio and partnerships, as well as creating additional revenue streams.
"Arlanxeo, now as a 100 percent owned Saudi Aramco subsidiary, represents an essential component to our global position in the chemicals market,” said Abdulaziz Al Judaimi, Saudi Aramco senior vice president, downstream.
"Full ownership of Arlanxeo will further diversify Saudi Aramco’s downstream portfolio and strengthen capabilities along the energy and chemicals value chains,” he added.
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. It would maintain its current headquarters in Maastricht, Netherlands
