Alujain signs partnership agreement with Beaulieu International Fibers worth 89 million riyals

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On Monday, July 20, 2026, Alujain signed a joint venture partnership agreement with Beaulieu International Fibers, a wholly owned subsidiary of Beaulieu International Group, aimed at structurally increasing its production capacity of advanced polypropylene (PP) fibers dedicated to geotextiles and flooring fibers, worth 89 million riyals ($23.73 million), consisting of assets (machinery) and cash.

The company said in a statement on Tadawul that the partnership included the entry of Beaulieu International Fibers as a strategic partner with a 50% stake in the capital of the subsidiary, Manufacturing Infrastructure Processing Company. This partnership resulted in the signing of several agreements between the two partners, including the shareholders' agreement, the subscription agreement, and marketing agreements. It explained that the contract is a direct investment from Beaulieu International Fibers amounting to 89 million riyals as additional capital in Manufacturing Infrastructure Processing Company, in exchange for 50% ownership of Manufacturing Infrastructure Processing Company, which is 100% owned by Alujain, aimed at establishing a joint venture to produce synthetic fibers and non-woven fabrics locally in Saudi Arabia.

It clarified that the contract is long-term, by mutual agreement between the two parties, adding that the financial impact will begin from the end of the fourth quarter of 2026, and that there are no related parties. It added that Manufacturing Infrastructure Processing Company intends to raise its current production capacity of 26,000 tons per year to 88,000 tons per year of synthetic fibers and non-woven products over the coming years, including the contribution of Beaulieu International Fibers with production lines. This expansion plan will require additional capital expenditures of about 330 million riyals ($88 million), which will be jointly financed by the two partners. It mentioned that Beaulieu International Group is a diversified industrial holding group headquartered in Belgium. The group's business portfolio includes chemicals, industrial applications, flooring, distribution, and real estate, and it serves customers in 120 countries worldwide, recording sales of 1.8 billion euros in 2025. According to data available on Argaam, Alujain had announced in November 2022 that it received a letter of approval from the Ministry of Energy to allocate the necessary feedstock for the new project in Yanbu Industrial City, Saudi Arabia, which includes a propane gas processing plant (to produce propylene), a polypropylene production plant, and a complex for producing compounds and specialty materials from polypropylene.

It also announced in February 2026 the signing of a memorandum of understanding with Beaulieu International Group for a partnership in a strategic project aimed at localizing the production of synthetic fibers and non-woven fabrics.

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