Alujain signs SAR 89M JV with Beaulieu Fibres International

Logo of Alujain Corp.

Alujain Corp. signed a joint venture (JV) agreement, on July 20, with Beaulieu Fibres International N.V., a wholly owned subsidiary of Beaulieu International Group.

The partnership aims to structurally expand Alujain's production capacity of advanced polypropylene (PP) fibres for geotextile and flooring applications, according to a Tadawul statement.

The deal is valued at SAR 89 million ($23.73 million), comprising machinery and cash.

Under the agreement, Beaulieu Fibres International will acquire a 50% stake in Alujain's wholly owned subsidiary, Infrastructure Reinforcement Industrial Company (IRIC).

In addition, the companies signed shareholders', subscription and marketing agreements.

The investment will be made through an SAR 89 million capital injection into IRIC in exchange for a 50% ownership stake, with the JV expected to produce synthetic fibers and nonwoven fabrics in Saudi Arabia.

The long-term agreement will remain in effect by mutual consent of both parties. The financial impact is expected to begin at the end of Q4 2026.

There are no related parties to the deal, the statement added.

IRIC plans to increase its annual production capacity from 26,000 tons to 88,000 tons of synthetic fibers and nonwoven products over the coming years, supported by production lines contributed by Beaulieu Fibres International.

The expansion will require an additional SAR 330 million ($88 million) in capital expenditure, which will be jointly funded, the statement said.

Beaulieu International Group, headquartered in Belgium, is a diversified industrial holding company with businesses spanning chemicals, industrial applications, flooring, distribution, and real estate.

The group serves customers in 120 countries and reported €1.8 billion in sales in 2025.

According to data available with Argaam, Alujain received approval in November 2022 from the Ministry of Energy for feedstock

allocation for a new project in Yanbu Industrial City.

The project comprises a propane processing plant to produce propylene, a polypropylene plant, and a complex for producing polypropylene compounds and specialty materials.

In February 2026, Alujain signed a memorandum of understanding (MoU) with Beaulieu International Group for a strategic partnership to localize the production of synthetic fibers and nonwoven fabrics.