Arlanxeo

'Arlanxeo' is a specialty chemicals company that Saudi Aramco fully acquired on December 31, 2018. This acquisition followed the purchase of the 50 percent stake of its German partner, Lanxess, for EUR1.5 billion. This significant step aligns with Saudi Aramco's goal to integrate its activities in crude oil, gas, and chemicals, further diversifying its operations in refining, processing, and marketing. This enhances Saudi Aramco's capabilities across the entire oil value chain, benefiting communities worldwide.

'Arlanxeo', based in the Netherlands, is a global producer of synthetic rubber and elastomers. It supplies major companies that manufacture tires and automotive spare parts.

The designation, Arlanxeo, is derived from the names of the two original partners in the joint venture, combining the first syllable of Saudi Aramco and Lanxess. The designation's ending, 'eo', refers to the products and symbolizes elastomers.

In 2021, Arlanxeo was ranked first in the European Rubber Journal's top ten elastomers for sustainability. This recognition was for its 'Techsyn' project, a new tire technology platform that combines chemically optimized synthetic rubbers from Arlanxeo with tailor-made silica from Solvay and advanced mixing technology from Bridgestone.

The Techsyn project enables improved fuel consumption and tire wear properties at the same time, without compromising tire performance. As a result, tires made with Techsyn contribute to reduced carbon dioxide emissions and extended tire lifespan. They reduce tire wear by up to 30 percent and lower rolling resistance by 6 percent.

In 2011, Saudi Aramco announced its strategic goal to become the world's largest integrated energy and chemicals company. This aim is to enhance its ability to maximize and diversify energy sources and to develop new and innovative ways to utilize current hydrocarbon resources.

As part of developing its chemical activities through partnerships with international partners, Saudi Aramco officially launched Arlanxeo in April 2016, a joint venture with German specialty chemicals company, Lanxess, based in Maastricht, Netherlands. This significant step reflects Saudi Aramco's increased involvement in the chemicals sector and is part of its strategic goal to become the world's leading integrated energy and chemicals company.

This company helps diversify the Kingdom's full economic potential of hydrocarbon resources and contributes to providing more opportunities for economic diversification and employment.

A significant portion of Arlanxeo's business focuses on producing high-performance tires for the automotive industry. This helps enhance Saudi Aramco's competitive position in the global market, as the company, through Arlanxeo, invests in a global facility for synthetic rubber and elastomer production that meets the needs of many leading tire manufacturers and automotive parts suppliers worldwide.

Saudi Aramco's launch of this company is also aimed at supporting growth by providing resources for expanding its operations and assisting in financing the necessary innovation efforts to sustain its leadership. It not only contributes through its reliable feedstock supply but also through its operational excellence, experience in mega-projects, and strong financial capabilities.

Arlanxeo supplies many of the world's leading tire manufacturers and automotive parts suppliers, enhancing the company's business portfolio and capabilities across all stages of the oil and chemical value chain. This enables it to fully leverage the economic potential of the Kingdom's hydrocarbon resources. Moreover, this project can serve as a catalyst for enhancing the Kingdom's economic diversification and contribute to providing meaningful employment opportunities that require high-level manufacturing skills.

The high-performance elastomer unit's products comprise a wide range of global multi-functional varieties that offer flexibility in recipe formulations, product design, and processing fields. These products are supported by a global technical service known for reliability and high efficiency. They are used in the production of functional components in automotive-related engineering industries, crude oil and gas exploration, production, mechanics, construction, and cables. Additionally, they serve as enhancers for plastic materials and raw elements for adhesives.

Arlanxeo owns various business units and technical centers for plants and applications worldwide, in line with Saudi Aramco's interest in developing polymer applications.