Saudi Basic Industries Corporation (SABIC) is emerging as one of the world’s fastest growing and most successful petrochemicals companies. It has become a significant force in the world market and has created a new center of gravity for the Middle East as one of the most important regions for chemical industry growth in the decade ahead. Besides its own significant organic growth and new plants, SABIC has completed the acquisition of DSM chemicals in Europe and is completing the acquisition of Huntsman Petrochemicals (UK) whilst currently negotiating new investments in other global locations.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polymers, Specialized Products, Fertilizers and Metals. The company has dedicated Research and Technology centers in Riyadh and Jubail in Saudi Arabia, Geleen in The Netherlands, Sugarland and Little Ferry in the USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two massive production sites in Saudi Arabia—Al-Jubail and Yanbu—comprising 18 world-scale production units. Capacity has increased from 35.4 million tons in 2001 to 46.7 million tons in 2005. Fortune ranks SABIC in its Global 500 companies and #6 in the chemicals industry. Plans are underway by the Kingdom of Saudi Arabia for two new generations of industrial sites in Al-Jubail and Yanbu, where SABIC will add new facilities.
In Europe, SABIC is headquartered in Sittard, The Netherlands. SABIC Europe employs nearly 2,450 people and operates two petrochemical production sites in Geleen (The Netherlands), and Gelsenkirchen (Germany) for the production of polypropylenes, polyethylenes and liquid hydrocarbons. With the completion of the Huntsman acquisition, SABIC will have further production facilities in the UK. In addition, SABIC’s offices and operations in Asia Pacific are headquartered in Singapore. The American operations, known as SABIC Americas, are operated from Houston, USA.
SABIC is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers. It is also the largest steel manufacturing company in the Middle East and North Africa.
SABIC’s profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company’s highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC’s current and planned investments in capacity expansions are expected to reach approximately $20 billion in the next two years. With these expansions, SABIC’s annual production of products will grow from 43 million tons to over 60 million tons by 2008.
Standard & Poor’s has upgraded SABIC’s long-term corporate credit rating to ‘A+’ from ‘A’ equal to that of the Kingdom of Saudi Arabia. The A+ rating confirms SABIC’s leading position amongst the world’s top petrochemical companies.
Headquartered in Riyadh, Saudia Arabia, SABIC is 70% owned by the government of Saudi Arabia, with the remaining 30% held by private investors in Saudi Arabia and from other Gulf Cooperation Council countries.