National Industrialization Company (Tasnee) has signed a Share Purchase Agreement to sell its downstream plastics operations to Saudi Holding Company for Conversion Industries (Tahweel) in a deal valued at SR700 million. This marks a significant step in the company’s strategy to sharpen its focus on petrochemicals.

The all-cash transaction includes the sale of Rowad Industrial Transformation Company, along with its portfolio of subsidiaries: Rowad Global Packaging Company Limited, Taldeen Plastic Solutions, Rowad National Plastic Company Limited, Rowad International Geosynthetics Company, and Rowad United Marketing Company.

Together, the businesses form a diversified plastics platform spanning multiple segments of the value chain. Their product portfolio includes BOPP films, agricultural films, HDPE pipes, industrial plastic pallets, plastic sheets, and HDPE/LLDPE geomembrane liners, among other products.

Tasnee said the move reflects a deliberate shift to strengthen its balance sheet and concentrate on core petrochemical operations.

“This transaction reflects Tasnee’s disciplined approach to capital allocation and our commitment to strengthening Tasnee’s financial position while supporting our strategic focus on petrochemicals,” said Fawaz M. Al-Fawaz, Board Member and CEO of Tasnee.

“The transaction enables Tasnee to enhance its capital structure and redirect capital towards Tasnee’s long-term strategic objectives and delivering sustainable value creation for our shareholders. The Business is a viable platform, and we believe it will continue to thrive under Tahweel’s dedicated focus on downstream industries.”

For Tahweel, the acquisition represents a major expansion of its downstream conversion capabilities.

“We are pleased to acquire this high-quality portfolio and welcome the experienced team behind it,” said Nader S Al-Dakheel, CEO of Tahweel.

“We see strong potential in the Business, and we are committed to investing in its development to deliver continued value for our customers and support long-term growth. This acquisition enhances Tahweel’s portfolio with new product lines and capabilities, enabling us to serve customers more effectively with a broader, integrated range of solutions.”