Chemistry that matters
Based in Ryadh, Saudi Arabia, SABIC stands for the Saudi Basic Industries Corporation, one of the largest petrochemical companies in the world with 40,000 employees running operations in 40 countries.
With 70% of its shares owned by the Saudi Government, SABIC may be considered as a national company.
But with the remaining 30% shares left to private investors in Saudi Arabia and other Gulf Cooperation Council (GCC) countries, SABIC is managed as a listed company.
Headquartered in Ryadh, SABIC operations in Saudi Arabia are concentrated in the Al Jubail Industrial City on the Arabian Persian Gulf and in Yanbu on the Red Sea.
Since the first production shipped from Al Jubail plant inn 1981, SABIC sustained a constant and significative profitable growth.
In the years 2000s, SABIC took a leap to become a global petrochemical company in taking over the petrochemical activities of the Dutch company DSM and in buying the GE Plastics division mostly based in North America.
As a result, SABIC’s overall production doubled from the 35 million metric tons in 2001 to reach 69 million metric tons in 2011.
SABIC is the world largest producer of Mono-ethylene glycol, MTBE, granular urea, polycarbonate, polyphenylene and polyether imide.
With the Chemicals Business unit representing 60% of the whole company, SABIC took market leadership in key hydrocarbon products such as ethylene, ethylene glycol, methanol, MTBE, polyethylene and engineering plastics and its derivatives.
SABIC is organized around six business units:
– Performance Chemicals
– Innovative Plastics
In acquiring DSM Chemicals and GE Plastics, SABIC was also interested in lifting its expertise from bulk chemicals to advanced polymers and innovative hydrocarbon products.
SABIC deployed its strategy toward high added value products in opening Technology and Innovation (T and I) centers in Saudi Arabia, the United States, Europe, China, Japan, Korea and India.
These T and I centers invent 150 new products every year and are at the source of 8,000 global patents.
SABIC Key Figures
– 2010 Revenues: $40,5 billion
– 2011 Earnings: $7,8 billion
– 2010 Earnings: $5,7 billion
– 2011 Capital Expenditure: $3,2 billion
– 2010 Capital Expenditure: $5,2 billion
SABIC Projects and Business Highlights
SABIC is the spearhead of Saudi Arabia overall strategy to move downstream to reduce its reliance on the crude oil export markets and support its economical and social development.
In a context where the USA have proven to become a key player on the natural gas market in a few years, the threat to see USA turning as the largest oil producer on the next decade is considered seriously and gives even more importance to the development of SABIC towards added value hydrocarbon products on a global base.
WithShell, SABIC is planning the expansion of the Sadaf joint venture for the production of polyurethane and styrene monomer propylene oxide (SMPO)
With Sinopec, SABIC is investing in what shall be the largest polyurethane plant in China.
To sustain its development SABIC is not only investing in Saudi Arabia with international oil companies such as ExxonMobil or Shell and also building up joint venture overseas to secure its access to the largest consumers markets.