SABIC
Encyclopedia
SABIC is a 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. Private sector shareholders are from Saudi Arabia and other countries of the six-nation Gulf Cooperation Council (GCC). SABIC is the largest company in the Middle East.
SABIC is currently the second largest global ethylene glycol
producer and is expected to become number one after the introduction of these 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 mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
In 2008, SABIC was ranked the no. 4 in the world by Fortune Global 500. By 2009, SABIC also improved its position to become the world’s 186th largest corporation One year later, in 2010, SABIC has grown to be the 2nd largest Diversified Chemical Company, 1st when measured only by Market and Asset Value. Measured over all branches, it's now the world 95th largest corporation, on the Forbes Global 2000 ranking with revenues of $40.5 billion, profits of $5.7 billion and assets standing at $84.3 billion
The company is based in Jubail
and has interests in 17 affiliated companies which range from full ownership to significant partial participation.
on the Arabic 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. SABIC employs above 30,000 people globally and has 60 manufacturing and compounding plants in more than 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 Arabic Gulf. Two are located in Yanbu Industrial City on the Red Sea and one in eastern province 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. The Saudi Iron and Steel Company (HADEED), based in Al-Jubail, is one of the world’s biggest fully integrated producers.
In July 2002 SABIC commenced operations in Europe after the $1,983 million acquisition of the petrochemicals business of Dutch group DSM
. (SEP). SABIC Europe SABIC’s European subsidiary, produces over 2 mmt of polymers and over 5 mmt of basic chemicals, employs over 3,000 people, and has two major manufacturing locations in Geleen
in the Netherlands and Gelsenkirchen
in Germany. SABIC became the 11th largest petrochemicals company in the world. That purchase signified SABIC’s intent to expand and become a true global company.
In 2004, the value of SABIC shares, listed on the Saudi Stock Market, increased 170% while its net profits increased by 112% from 2003 to 2004.
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 Arabic Gulf region's largest steel producer for 2005 and assigned SABIC '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 SAR375 billion, the equivalent of USD100 billion) and the second largest by market value outside the US and UK.
In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range between SAR1 billion (USD266.67 million) and SAR3 billion (USD800 million).
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 $11.6 billion cash deal, including $8.7 billion of its liabilities, and launched SABIC Innovative Plastics. On of their plants is located in Bergen op Zoom
, Netherlands
. In the same year, the company ranked 145 (Previous rank: 301) in Forbes Global 2000
list. Today, SABIC Innovative Plastics is a multi-billion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.
In July 2009, the company received approval from the Chinese government to build a US$3 billion (Dh11bn) petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.
Expansion operations and investments are projected to amount to USD20 billion in 2007 and USD70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons (mmt); by the end of 2008 it had reached 56 mmt and by 2020, SABIC intends to produce over 135 mmt per year.
SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter 2010 was SR 5.33 billion, compared to net income of SR 3.65 billion in the same period last year, an increase of 46 percent and compared to SR 5.02 billion for the previous quarter, a rise of 6 percent
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
in Saudi Arabia
Saudi Arabia
The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World...
as listed in Tadawul
Tadawul
Saudi Stock Exchange or Tadawul is the only stock exchange in Saudi Arabia. It is supervised by the Capital Market Authority. The Tadawul All-Share Index reached its highest point at 20,634.86 on 25 February 2006. It lists 144 publicly traded companies...
, but the Saudi government still owns 70% of its shares. Private sector shareholders are from Saudi Arabia and other countries of the six-nation Gulf Cooperation Council (GCC). SABIC is the largest company in the Middle East.
SABIC is currently the second largest global ethylene glycol
Ethylene glycol
Ethylene glycol is an organic compound widely used as an automotive antifreeze and a precursor to polymers. In its pure form, it is an odorless, colorless, syrupy, sweet-tasting liquid...
producer and is expected to become number one after the introduction of these new projects. SABIC is the third largest polyethylene
Polyethylene
Polyethylene or polythene is the most widely used plastic, with an annual production of approximately 80 million metric tons...
manufacturer, the fourth largest polyolefins manufacturer and the fourth largest polypropylene
Polypropylene
Polypropylene , also known as polypropene, is a thermoplastic polymer used in a wide variety of applications including packaging, textiles , stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes...
manufacturer. SABIC is also the world’s largest producer of mono-ethylene glycol, MTBE, granular urea, polyphenylene and polyether imide.
In 2008, SABIC was ranked the no. 4 in the world by Fortune Global 500. By 2009, SABIC also improved its position to become the world’s 186th largest corporation One year later, in 2010, SABIC has grown to be the 2nd largest Diversified Chemical Company, 1st when measured only by Market and Asset Value. Measured over all branches, it's now the world 95th largest corporation, on the Forbes Global 2000 ranking with revenues of $40.5 billion, profits of $5.7 billion and assets standing at $84.3 billion
The company is based in Jubail
Jubail
Jubail , is a city in the Eastern province on the Persian Gulf coast of Saudi Arabia. It consists of the Old Town of Al Jubail, which was originally a small fishing village, up to 1975 and the new industrial area....
and has interests in 17 affiliated companies which range from full ownership to significant partial participation.
History
The Saudi Basic Industries Corporation SABIC was founded in 1976 by Royal Decree to convert oil by products into useful chemicals, polymers and fertilizers. SABIC's founding transformed the small fishing villages of JubailJubail
Jubail , is a city in the Eastern province on the Persian Gulf coast of Saudi Arabia. It consists of the Old Town of Al Jubail, which was originally a small fishing village, up to 1975 and the new industrial area....
on the Arabic Gulf and Yanbu on the Red Sea
Red Sea
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden. In the north, there is the Sinai Peninsula, the Gulf of Aqaba, and the Gulf of Suez...
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. SABIC employs above 30,000 people globally and has 60 manufacturing and compounding plants in more than 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 Arabic Gulf. Two are located in Yanbu Industrial City on the Red Sea and one in eastern province 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. The Saudi Iron and Steel Company (HADEED), based in Al-Jubail, is one of the world’s biggest fully integrated producers.
The Company
SABIC is composed of six strategic business units and a manufacturing group. These are: Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics, plus manufacturing. (Innovative Plastics also contains manufacturing plants)In July 2002 SABIC commenced operations in Europe after the $1,983 million acquisition of the petrochemicals business of Dutch group DSM
DSM (company)
DSM is a multinational life sciences and materials sciences-based company. DSM's global end markets include food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials...
. (SEP). SABIC Europe SABIC’s European subsidiary, produces over 2 mmt of polymers and over 5 mmt of basic chemicals, employs over 3,000 people, and has two major manufacturing locations in Geleen
Geleen
Geleen is a city in the southern part of the province of Limburg in the Netherlands. With 33,960 inhabitants, it is part of the municipality of Sittard-Geleen. Geleen is situated along the river Geleenbeek, a right tributary to the river Meuse. The town centre is situated at about 60 m above sea...
in the Netherlands and Gelsenkirchen
Gelsenkirchen
Gelsenkirchen is a city in North Rhine-Westphalia, Germany. It is located in the northern part of the Ruhr area. Its population in 2006 was c. 267,000....
in Germany. SABIC became the 11th largest petrochemicals company in the world. That purchase signified SABIC’s intent to expand and become a true global company.
In 2004, the value of SABIC shares, listed on the Saudi Stock Market, increased 170% while its net profits increased by 112% from 2003 to 2004.
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 Arabic Gulf region's largest steel producer for 2005 and assigned SABIC '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 SAR375 billion, the equivalent of USD100 billion) and the second largest by market value outside the US and UK.
In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range between SAR1 billion (USD266.67 million) and SAR3 billion (USD800 million).
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
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
's Plastics division, in a $11.6 billion cash deal, including $8.7 billion of its liabilities, and launched SABIC Innovative Plastics. On of their plants is located in Bergen op Zoom
Bergen op Zoom
Bergen op Zoom is a municipality and a city located in the south of the Netherlands.-History:Bergen op Zoom was granted city status probably in 1266. In 1287 the city and its surroundings became a lordship as it was separated from the lordship of Breda. The lordship was elevated to a margraviate...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
. In the same year, the company ranked 145 (Previous rank: 301) in Forbes Global 2000
Forbes Global 2000
The Forbes Global 2000 is an annual ranking of the top 2000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value...
list. Today, SABIC Innovative Plastics is a multi-billion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.
In July 2009, the company received approval from the Chinese government to build a US$3 billion (Dh11bn) petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.
Production and Major Expansions
Fiscal Performance
Net profits of SABIC in 2008 touched SR 22 billion (US$ 5.86 billion), while total assets stood at SR 272 billion (US$ 72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood at SR 95 billion (US$ 25 billion). Fortune 500 ranking ranks SABIC revenues as of $40.2 billion.SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter 2010 was SR 5.33 billion, compared to net income of SR 3.65 billion in the same period last year, an increase of 46 percent and compared to SR 5.02 billion for the previous quarter, a rise of 6 percent
Subsidiaries
- HadeedHadeedHadeed is an iron and steel company based in Saudi Arabia. It is a wholly owned subsidiary of the Saudi Basic Industries Corporation .- History :...
- Ibn Sina
- Ibn Zahr
- Sadaf
- GAS
- Petrokemya
- Kemya
- Ar-razi
- Al-Bayroni
- Yanpet
- Ibn Rushd
- Sharq
- Ibn Hayyan
- Safco
- Jubail United
- Tayf
- YANSABYansabYansab is the most recent SABIC, , affiliate in Saudi Arabia, and will be the Sabic largest petrochemical complex. It will have an annual capacity exceeding 4 million metric tons of petrochemical products including: 1.3 million MT of ethylene; 400,000 MT of propylene; 900,000 MT of polyethylene;...
- SABTANK
- Saudi Kayan
- SABIC Europe
- SABIC Americas
- SABIC Innovative Plastics (formerly GE Plastics)
Products
- EthyleneEthyleneEthylene is a gaseous organic compound with the formula . It is the simplest alkene . Because it contains a carbon-carbon double bond, ethylene is classified as an unsaturated hydrocarbon. Ethylene is widely used in industry and is also a plant hormone...
- PropylenePropylenePropene, also known as propylene or methylethylene, is an unsaturated organic compound having the chemical formula C3H6. It has one double bond, and is the second simplest member of the alkene class of hydrocarbons, and it is also second in natural abundance.-Properties:At room temperature and...
- Butadiene
- Butene-11-Butene1-Butene is an organic chemical compound, linear alpha-olefin , and one of the isomers of butene. The formula is .-Stability:1-Butene is stable in itself but polymerizes exothermically. It is highly flammable and readily forms explosive mixtures with air...
- CIE (Crude industrial ethanol)
- MTBE (Methyl tert-butyl etherMethyl tert-butyl etherMethyl tert-butyl ether, also known as methyl tertiary butyl ether and MTBE, is an organic compound with molecular formula 3COCH3. MTBE is a volatile, flammable, and colorless liquid that is immiscible with water. It has a minty odor vaguely reminiscent of diethyl ether, leading to unpleasant taste...
) - Styrene Monomer
- BenzeneBenzeneBenzene is an organic chemical compound. It is composed of 6 carbon atoms in a ring, with 1 hydrogen atom attached to each carbon atom, with the molecular formula C6H6....
- Paraxylene
- CBO (Carbon Black Oil)
- Caustic Soda
- EDC (Ethylene Dichloride)
- VCM (Vinyl ChlorideVinyl chlorideVinyl chloride is the organochloride with the formula H2C:CHCl. It is also called vinyl chloride monomer, VCM or chloroethene. This colorless compound is an important industrial chemical chiefly used to produce the polymer polyvinyl chloride . At ambient pressure and temperature, vinyl chloride...
Monomer) - PhenolPhenolPhenol, also known as carbolic acid, phenic acid, is an organic compound with the chemical formula C6H5OH. It is a white crystalline solid. The molecule consists of a phenyl , bonded to a hydroxyl group. It is produced on a large scale as a precursor to many materials and useful compounds...
- AcetoneAcetoneAcetone is the organic compound with the formula 2CO, a colorless, mobile, flammable liquid, the simplest example of the ketones.Acetone is miscible with water and serves as an important solvent in its own right, typically as the solvent of choice for cleaning purposes in the laboratory...
- Bisphenol ABisphenol ABisphenol A is an organic compound with two phenol functional groups. It is used to make polycarbonate plastic and epoxy resins, along with other applications....
- Fertilizers
- SteelSteelSteel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
- MethanolMethanolMethanol, also known as methyl alcohol, wood alcohol, wood naphtha or wood spirits, is a chemical with the formula CH3OH . It is the simplest alcohol, and is a light, volatile, colorless, flammable liquid with a distinctive odor very similar to, but slightly sweeter than, ethanol...
- LexanLexanLexan is a registered trademark for SABIC Innovative Plastics' brand of polycarbonate resin thermoplastic. Polycarbonate polymer is produced by reacting bisphenol A with carbonyl dichloride, also known as phosgene. Lexan is the brand name for polycarbonate sheet and resin in a wide range of grades...
PolycarbonatePolycarbonatePolycarbonatePhysical PropertiesDensity 1.20–1.22 g/cm3Abbe number 34.0Refractive index 1.584–1.586FlammabilityV0-V2Limiting oxygen index25–27%Water absorption – Equilibrium0.16–0.35%Water absorption – over 24 hours0.1%... - NorylNorylNoryl is a blend of polyphenylene oxide and polystyrene that was developed by General Electric Plastics in 1966 . It is a rare example of a homogeneous mixture of two polymers. Most polymers are incompatible with one another, so tend to produce separate phases when mixed...
PPO - Cycolac (Acrylonitrile butadiene styreneAcrylonitrile butadiene styreneAcrylonitrile butadiene styrene is a common thermoplastic. Its melting point is approximately 105 °C ....
) - Cycoloy (PolycarbonatePolycarbonatePolycarbonatePhysical PropertiesDensity 1.20–1.22 g/cm3Abbe number 34.0Refractive index 1.584–1.586FlammabilityV0-V2Limiting oxygen index25–27%Water absorption – Equilibrium0.16–0.35%Water absorption – over 24 hours0.1%...
/ Acrylonitrile butadiene styreneAcrylonitrile butadiene styreneAcrylonitrile butadiene styrene is a common thermoplastic. Its melting point is approximately 105 °C ....
blend) - Ultem (Polyetherimide)
- Extem (PolyimidePolyimidePolyimide is a polymer of imide monomers. The structure of imide is as shown. Polyimides have been in mass production since 1955...
) - Geloy (Acrylonitrile Styrene Acrylate / Acrylonitrile butadiene styreneAcrylonitrile butadiene styreneAcrylonitrile butadiene styrene is a common thermoplastic. Its melting point is approximately 105 °C ....
blend) - Valox (Polybutylene terephthalatePolybutylene terephthalatePolybutylene terephthalate is a thermoplastic engineering polymer, that is used as an insulator in the electrical and electronics industries. It is a thermoplastic crystalline polymer, and a type of polyester...
) - Verton (Long Fiberglass reinforced Polymers)
- Xenoy (PolycarbonatePolycarbonatePolycarbonatePhysical PropertiesDensity 1.20–1.22 g/cm3Abbe number 34.0Refractive index 1.584–1.586FlammabilityV0-V2Limiting oxygen index25–27%Water absorption – Equilibrium0.16–0.35%Water absorption – over 24 hours0.1%...
/ Polybutylene Terephthalate blend) - Xylex (PolyesterPolyesterPolyester is a category of polymers which contain the ester functional group in their main chain. Although there are many polyesters, the term "polyester" as a specific material most commonly refers to polyethylene terephthalate...
/PolycarbonatePolycarbonatePolycarbonatePhysical PropertiesDensity 1.20–1.22 g/cm3Abbe number 34.0Refractive index 1.584–1.586FlammabilityV0-V2Limiting oxygen index25–27%Water absorption – Equilibrium0.16–0.35%Water absorption – over 24 hours0.1%...
blend)
See also
- AmcorAmcorAmcor Limited is an Australian-based multinational packaging company. Its headquarters are in Hawthorn, Victoria ; and it is listed on the Australian Securities Exchange....
- Brødrene Hartmann
- List of Saudi Arabian companies
- Saudi AramcoSaudi AramcoSaudi Aramco , officially the Saudi Arabian Oil Company, is the national oil company of Saudi Arabia.Saudi Aramco is the world's largest and most valuable privately-held company, with estimates of its value in 2011 to be $7 trillion USD.Saudi Aramco has both the largest proven crude oil reserves,...