24th January 2019

SAUDI ARAMCO ACQUIRES CONVERGE TECHNOLOGY

Saudi Aramco has acquired the Converge product line and associated operations and technologies from US-based Novomer Inc. The transaction was valued at up to US$100-million.

Converge is manufactured from, and contains a significant portion of, carbon-diioxide. The technology, according to the company, provides a high-performance, cost-competitive and more sustainable alternative to conventional petroleum-based polyols used in coatings, adhesive, sealant, and elastomer (CASE) applications. These cover a broad spectrum from automobile seats to building insulation panels.

Amin H. Nasser, Saudi Aramco president & CEO said, “Some of Saudi Aramco’s most significant achievements in recent years have been in developing new international partnerships in the downstream space. There is compelling industrial logic to the Converge polyol technology deal as it enables the conversion of waste CO2 into cleaner, high-value end-products with significant performance, cost and carbon footprint improvements. The deal also enables the development of new technological growth areas in line with Saudi Vision 2030 objectives of economic diversification and job creation.”

Abdulaziz Al-Judaimi, acting senior vice-president of Downstream, Saudi Aramco, added: “The acquisition of the Converge technology reflects the success of Saudi Aramco’s efforts to continuously seek the best possible opportunity for the commercialization of specific downstream technologies on a large-scale. This technology represents an excellent marriage of improved product quality and lower cost while achieving environmental benefits.

“By providing access to reliable feedstock supplies, financial stability and unrivalled R&D investment and focus, Saudi Aramco will accelerate the commercialization of these exciting new polyol materials. This will help spur growth in the production of more sustainable finished and semi-finished products in the petrochemicals conversion sector, including within the small and medium enterprise sector in Saudi Arabia.”

Compared to conventional polyols, Converge polyols reportedly have approximately one-third the carbon footprint. When incorporated into polyurethane formulations, they demonstrate superior material performance including: increased strength; increased abrasion, chemical and weather resistance; increased adhesion, hardness and tear-strength; greater load bearing capacity; and reduced heat of combustion.

Saudi Aramco will manufacture and market Converge and associated products through its subsidiary, Aramco Performance Materials LLC (APM).  Saudi Aramco is planning for full-scale production facilities in Saudi Arabia to support the manufacture of specialty and intermediate chemical products to supply a wide variety of industries. 

saudiaramco.com