|Headquarters||Riyadh, Saudi Arabia|
Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman (2003-)
|Products||Chemicals and intermediates, industrial polymers, fertilizers and metals|
|Revenue||$50.4 billion USD (2014)|
Number of employees
SABIC (Saudi Arabia Basic Industries Corporation) (Arabic: الشركة السعودية للصناعات الأساسية ، سابك) is a Saudi diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers, and metals. It is the largest public company in Saudi Arabia, as listed in Tadawul, but the Saudi government still owns 70% of its shares. SABIC is also the largest listed company in the Middle East. Private shareholders are from Saudi Arabia and other countries of the six-nation Gulf Cooperation Council (GCC).
SABIC was the world's fourth largest chemical producer in 2013. It is currently the second largest global ethylene glycol producer and is expected to top the list after the introduction of new projects. SABIC is the third largest polyethylene manufacturer, the fourth largest polyolefins manufacturer, and the fourth largest polypropylene manufacturer. SABIC is also the world’s largest producer of MTBE, granular urea, polycarbonate, polyphenylene and polyether imide.
In 2014, SABIC was ranked fourth in the world among chemical companies by Fortune Global 500, and the world’s 205th largest corporation. In 2010, SABIC grew to be the second largest diversified chemical company, or first when measured only by asset value. Measured over all its branches, it became (as of 2014) the world's 98th largest corporation on the Forbes Global 2000 ranking (which lists only publicly traded companies), with sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion.
The company is based in Riyadh and has interests in 17 affiliated companies, which range from full ownership to significant partial participation.
SABIC was founded in 1976 by royal decree to convert oil by-products into useful chemicals, polymers, and fertilizers. The first chairman of the company was Ghazi Abdul Rahman Al Gosaibi, the Minister of Industry and Electricity, and the first CEO was Abdul Aziz Bin Abdullah Al Zamil.
SABIC's founding transformed the small fishing villages of Jubail on the Persian Gulf and Yanbu on the Red Sea into modern industrial cities. Production in 1985 was 6.5 million tons; five years later production rose to 13 million tons and by 2003 production had risen to 42 million metric tons and by 2012 to over 60 million tons. SABIC employs more than 40,000 people globally and has 60 manufacturing and compounding plants in over 40 countries.
SABIC's manufacturing network in Saudi Arabia consists of 18 affiliates. Most of these are based in the Al-Jubail Industrial City on the coast of the Persian Gulf. Two are located in Yanbu Industrial City on the Red Sea and one is in the eastern city of Dammam. SABIC is also partners in three regional ventures based in Bahrain. SABIC is a market leader in key products such as ethylene, ethylene glycol, methanol, MTBE and polyethylene. SABIC's wholly owned subsidiary, the Saudi Iron and Steel Company (Hadeed), based in Al Jubail, is one of the world’s biggest fully integrated producers.
SABIC underwent a business restructuring in October 2015, that saw the absorption of the commodity chemicals produced under the Innovative Plastics SBU into the Chemicals and Polymers SBUs. Along with this, the Specialties SBU was created to house the remainder of the Innovative Plastics products that did not fall under the commodity umbrella and the Innovative Plastics SBU would cease to exist by January 1, 2016. This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU. The business units are currently: Chemicals, Polymers, Fertilizers (Sabic has three fertiliser affiliates: Safco, Samad and Ibn Al-Baytar ), Metals and Specialties, plus manufacturing. Along with this change it was announced that the Innovative Plastics headquarters in Pittsfield MA would be closed, and the SABIC Regional Headquarters for the Americas would be relocated to Houston TX.
In July 2002, SABIC commenced operations in Europe after the $1.98 billion acquisition of the petrochemicals business of Dutch group DSM. SABIC Europe, SABIC’s European subsidiary, produces over 2 million metric tonnes of polymers and over 5 million metric tonnes of basic chemicals. It employs over 3,000 people and has two major manufacturing locations in Geleen in the Netherlands and Gelsenkirchen in Germany. After forming SABIC Europe, SABIC became the 11th largest petrochemicals company in the world. The purchase of DSM signified SABIC’s intent to expand and become a true global company.
In 2005, SABIC was the Middle East's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's 11th largest petrochemical company, ranked 331 on the Fortune Global 500 for 2005, the second largest producer of ethylene glycol and methanol in the world, the third largest producer of polyethylene and overall the fourth largest producer of polypropylene and polyolefin. Standard and Poor's and Fitch Ratings claimed SABIC to be the world's largest producer of polymers and the Persian Gulf region's largest steel producer for 2005; they assigned SABIC an "A" corporate credit rating. That same year, Bloomberg ranked SABIC as the 13th largest company in the world in terms of market capitalization (at the beginning of 2005 it exceeded ر.س 375 billion, the equivalent of US$100 billion) and the second largest by market value outside the US and UK.
In January 2007, SABIC Europe took over Huntsman Corporation plants in the UK. Headquartered in Sittard, Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemical production sites in Europe: Geleen (Netherlands), Teesside (United Kingdom), and Gelsenkirchen (Germany).
In 2008, SABIC Europe produced 7.3 million metric tons of petrochemicals, mainly for the European market.
On May 21, 2007, SABIC acquired General Electric's Plastics division, in a US$11.6 billion cash deal, including US$8.7 billion of its liabilities, and launched SABIC Innovative Plastics. One of their plants is located in Bergen op Zoom, Netherlands. In that year, the company ranked 145 (previous rank: 301) in the Forbes Global 2000 list. As of 2014, SABIC Innovative Plastics is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.
In July 2009, SABIC received approval from the Chinese government to build a US$3 billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.
Production and major expansions
Expansion operations and investments are projected to amount to US$20 billion in 2007 and US$70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons; by the end of 2008 it had reached 56 million metric tons. By 2020, SABIC intends to produce over 135 million metric tons per year.
Net profits of SABIC in 2008 touched ر.س 22 billion (US$5.86 billion), while total assets stood at ر.س 272 billion (US$72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood at ر.س 95 billion (US$25 billion). The Fortune 500 ranking set SABIC revenues as of $40.2 billion.[when?]
SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter of 2010 was ر.س 5.33 billion, compared to net income of ر.س 3.65 billion in the same period the previous year, representing an increase of 46 percent and compared to ر.س 5.02 billion for the previous quarter, a rise of 6 percent.
- dodecene-1 (C12)
- Diodecene-1 (C14-18)
- Wax (C20+)
- CIE (Crude industrial ethanol)
- MTBE (Methyl tert-butyl ether)
- Styrene Monomer
- CBO (Carbon Black Oil)
- Caustic Soda
- EDC (Ethylene Dichloride)
- VCM (Vinyl Chloride Monomer)
- Bisphenol A
- Lexan Polycarbonate
- Noryl PPO
- Cycolac (Acrylonitrile butadiene styrene)
- Cycoloy (Polycarbonate / Acrylonitrile butadiene styrene blend)
- Ultem (Polyetherimide)
- Extem (Polyimide)
- Geloy (Acrylonitrile styrene acrylate / Acrylonitrile butadiene styrene blend)
- Valox (Polybutylene terephthalate)
- Verton (Long Fiberglass reinforced Polymers)
- Xenoy (Polycarbonate / Polybutylene Terephthalate blend)
- Xylex (Polyester/Polycarbonate blend)
- EO/EG (Ethylene Oxide / Ethylene Glycol)
- Carbon black
- EPDM rubber
- Polybutadiene Rubber
- TADAWUL: SABIC Board Announcement on appointing acting CEO
- "SAUDI BASIC INDUSTRIES CORP (SABIC:Saudi Arabia): Stock Quote & Company Profile - Businessweek". investing.businessweek.com. Retrieved 14 August 2012.
- Forbes: Global 2000 Leading Companies Forbes Middle East
-  Process Worldwide
-  Fortune Global 500
-  Forbes Global 2000
- Hertog, Steffen (2008). "Petromin: the slow death of statist oil development in Saudi Arabia" (PDF). Business history 50 (5): 645–667. doi:10.1080/00076790802246087. Retrieved 16 September 2013.
- "SABIC announces global operational transformation to better meet customer needs | News | News & Media | SABIC". www.sabic.com. Retrieved 2015-10-08.
- "Sabic dissolving Innovative Plastics unit, leaving Pittsfield, Mass., HQ | Plastics News". www.plasticsnews.com. Retrieved 2015-10-08.
- The New York Times 22 May 2007
- Forbes Global 2000, 2008
- Karam, Souhail (2011). "Saudi SABIC says China govt approved Sinopec JV | Reuters". uk.reuters.com. Retrieved 19 August 2011.
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