Regional behemoth breezes towards ambitious targets.
(Category: Sabic Review )
(Image: SAB SAB Spontaneous abortion. See Abortion. _HEAD08_HR.jpg )
SAUDI Basic Industries Corporation (Sabic) has met all the targets set out at its inception in the mid-1970s. In the past five years, it has emerged as one of the world's top 10 petrochemicals producers, and significantly grown its foreign presence with intelligent acquisitions in high-growth markets.
By the end of 2009, when two petrochemicals complexes -- Yanbu National Petrochemical Company (Yansab) and Eastern Petrochemical Company (Sharq), of which it owns 50 per cent -- come on stream, it will enter the top five. Though numerous domestic private players are competing for feedstock feed·stock
Raw material required for an industrial process.
Noun 1. feedstock - the raw material that is required for some industrial process
raw material, staple - material suitable for manufacture or use or finishing , these are unlikely to dent Sabic's regional dominance. Indeed, Sabic is widening the gap between itself and its nearest Gulf competitor. According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. a recent analysis, Sabic enjoys a total production capacity of nearly eight times its nearest rival, Qatar Fertiliser Company (Qafco). Sabic will press ahead with plans to secure new markets and access new technology, but its plans may be undermined by international financial markets. Ratings agency Moody's Investors Service Moody's Investors Service
A leading global credit rating, research and risk analysis firm.
Moody's Investors Service
A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. weighed in with a potential ratings downgrade Downgrade
A negative change in the rating of a security.
For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. for Sabic Innovative Plastics in December 2007, out of concern that Sabic had used a highly leveraged funding structure, which put added pressure on the business. These concerns may prove well-founded, given that Sabic has to deal with rising costs, For example, the Sabic-Maaden phosphate project costs have risen by 62 per cent to $5.6 billion. But it has sufficient financial reserves to support all its overseas businesses. Still, there will be some concern at Sabic over the impact of the anticipated tailing off of petrochemicals prices in the second half of 2009, which may put further production increases in doubt. Sabic's origins go back 32 years, to when the government embarked on a strategic push to use associated gas from its oil production as the key feedstock for the production of chemicals, polymers and fertilisers. With a $80 billion market cap, Sabic is now the largest public company in the Middle East, though the government still owns 70 per cent of its shares. As one of the world's top 10 petrochemicals manufacturers, Sabic produces a large and expanding range of products, and is among the world's market leaders in the production of polyethylene polyethylene (pŏl'ēĕth`əlēn), widely used plastic. It is a polymer of ethylene, CH2=CH2, having the formula (-CH2-CH2-)n , polypropylene polypropylene (pŏl'ēprō`pəlēn), plastic noted for its light weight, being less dense than water; it is a polymer of propylene. It resists moisture, oils, and solvents. , glycols, methanol methanol, methyl alcohol, or wood alcohol, CH3OH, a colorless, flammable liquid that is miscible with water in all proportions. Methanol is a monohydric alcohol. It melts at −97. and fertilisers. Overall production capacity has grown from 27 million tonnes in 2001 to 49.1 million tonnes in 2006. In the first nine months of 2007, Sabic reported a 13 per cent increase in output to 40.9 million tonnes. From its Riyadh headquarters, Sabic controls 18 manufacturing affiliates inside the kingdom. Eight are joint ventures with foreign partners, while seven are joint-venture deals with local/regional partners. Three are wholly owned. Most of its affiliates are based in Jubail Industrial City and Dammam. Others are based in Yanbu. The company has in the past 10 years undergone a major organisational restructure, shifting from a functional, site-based structure to a strategic business unit (SBU SBU St. Bonaventure University (St. Bonaventure, New York)
SBU Stony Brook University (State University of New York)
SBU Southwest Baptist University (Bolivar, MO) ) structure. Sabic operates six interlinked SBUs: basic chemicals, intermediates, speciality products, polymers, fertilisers and metals. The company operates a series of dedicated research and technology centres, and has a dedicated engineering and procurement function that will manage Sabic's increasingly diverse contractor base. Sabic has two large production sites in Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. , at Jubail and Yanbu, comprising 19 world-scale complexes. Some of these complexes are partnerships with international joint venture partners such as the US' ExxonMobil Corporation, the UK/Dutch Shell Group and Japan's Mitsubishi Chemicals. Increased production has come from an ethylene glycol ethylene glycol: see glycol.
Simplest member of the glycol family, also called 1,2-ethanediol (HOCH2CH2OH). It is a colourless, oily liquid with a mild odour and sweet taste. plant at Jubail, a reinforced steel plant through the Saudi Iron & Steel Company (Hadeed) and urea and ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. plants through Saudi Arabian Fertiliser Company (Safco). In Europe, Sabic employs about 3,300 staff at three petrochemical manufacturing sites at Geleen in the Netherlands, Teesside in the UK and Gelsenkirchen in Germany. Sabic Europe produces 2.5 million tonnes per year (tpy) of polyolefins and 3.3 million tpy of basic chemicals. Since its mid-2007 acquisition of GE Plastics -- to be known as Sabic Innovative Plastics -- Sabic has also massively increased its US footprint. Sabic's is expected to do well this year as three world-scale petrochemicals projects -- Yansab, Sharq and Kayan -- are due to come on stream in 2008 and 2009, augmented by a series of smaller plants up to 2010. Having established its credentials as the first genuine Saudi multinational, Sabic is not content to stop at a top-five placing. By 2015, the company wants to become the world's largest petrochemicals producer. The industrial giant is prepared to use its strong financial position to consolidate its recent growth spurt growth spurt Pediatrics A period of rapid growth in middle adolescence; ♀ ↑ ±8 cm/yr ±age 12; ♂ ↑ ±10 cm/yr ± age 14; GS is orderly, affecting acral parts–ie, hands and feet grow before proximal regions, with a far wider footprint, both in terms of its product portfolio and its geographical positioning. The move downstream is a necessity. With ethane ethane (ĕth`ān), CH3CH3, gaseous hydrocarbon. It is a continuous-chain alkane. As a constituent of natural gas, it is used for fuel. It can be prepared by cracking and fractional distillation of petroleum. in such short supply in the Gulf, polymer and base chemical production are likely to peak in 2010, leaving the strongest growth in the plastics sector, though it also means Sabic must market directly to the consumer. Sabic will have to adopt a whole new skills set, and fast, if it is to meet its ambitious targets.
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