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SABIC (Saudi Basic Industries Corp) (Arabic: الشركة السعودية للصناعات الأساسية ) 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 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.[1] 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. 1 chemicals company in Asia and No. 4 in the world by Fortune Global 500. By 2009, SABIC also improved its position to become the world’s 186st largest corporation, on the Fortune 500 ranking with revenues of $40.2 billion, profits of $5.8 billion and assets standing at $72.4 billion[2] The company is based in Riyadh and has interests in 17 affiliated companies which range from full ownership to significant partial participation.
[edit] HistoryThe Sabic Basic Industries Corporation SABIC was founded in 1976 by Royal Decree to convert oil byproducts into useful chemicals, polymers and fertilizers. 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, 5 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 within the Kingdom and has 60 major manufacturing and compounding plants in more than 40 countries.[3] SABIC's manufacturing network in Saudi Arabia consists of 18 affiliates. Most of these are based in the Al-Jubail Industrial City on the Persian 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.[4] The Saudi Iron and Steel Company (HADEED), based in Al-Jubail, is one of the world’s biggest fully-integrated producers. [edit] The Company SABIC is composed of seven business units. These are: Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals, Innovative Plastics and Manufacturing. 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.[5] 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.[6] 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 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. [7] 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, the Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemical production sites in Europe: at Geleen (the Netherlands), at Teesside (United Kingdom), and at Gelsenkirchen (Germany).[8] 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 $8.7 billion of its liabilities,[9] and launched SABIC Innovative Plastics. In the same year, the company ranked 145 (Previous rank: 301) in Forbes Global 2000 list. [10] Today, SABIC Innovative Plastics is a multi-billion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.[11] [edit] Production and Major Expansions Expansion operations and investments are projected to amount to USD20 billion in 2007 and USD70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons (mmt); by the end of 2008 it had reached 56 mmt and by 2020, SABIC intends to produce over 135 mmt per year.[12] [edit] Fiscal Performance 2008Net profits of SABIC in 2008 touched SR 22 billion (US$ 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).[13] Fortune 500 ranking ranks SABIC revenues as of $40.2 billion. [edit] Subsidiaries
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