View source for SABIC

{{short description|Saudi chemicals company}}
{{Infobox company
| name = SABIC
| trade_name = SABIC
| logo = SABIC_logo.svg
| image =
| image_size = 261x261px
| image_alt =
| image_caption = SABIC Global Headquarters in [[Riyadh]], [[Saudi Arabia]]
| native_name = الشركة السعودية للصناعات الأساسية (سابك)
| native_name_lang = ar
| type = [[Public company|Public]]
| traded_as = {{Saudi Stock Exchange|2010}}
| foundation = {{start date and age|1976|09}}
| hq_location_city = [[Riyadh]]
| hq_location_country = [[Saudi Arabia]]
| key_people = {{Unbulleted list|Khalid Hashim Al-Dabbagh ([[Chairman]])|Abdulrahman Al-Fageeh ([[Chief executive officer|CEO]])}}
| num_employees = 32,721 (2019)
| industry = [[Chemical industry|Chemicals]]
| products = [[Chemicals]] and intermediates, industrial [[polymers]] and [[fertilizers]]
| revenue = {{Increase}} US$52.92&nbsp;billion<ref name="FY">https://www.sabic.com/en/reports/annual-2022 {{Bare URL inline|date=August 2024}}</ref>
| revenue_year = 2022
| net_income = {{Decrease}} US$4.41&nbsp;billion<ref name="FY"/>
| net_income_year = 2022
| operating_income = {{Decrease}} US$6.37&nbsp;billion<ref name="FY"/>
| income_year = 2022
| assets = {{Decrease}} US$83.49&nbsp;billion<ref name="FY"/>
| assets_year = 2022
| equity = {{Increase}} US$49.61&nbsp;billion<ref name="FY"/>
| equity_year = 2022
| owner = [[Saudi Aramco]] (70%)
| homepage = {{url|https://www.sabic.com/}}
}}
'''Saudi Basic Industries Corporation''' ({{langx|ar|الشركة السعودية للصناعات الأساسية}}), known as '''SABIC''' ({{langx|ar|سابك}}), is a Saudi chemical manufacturing company. 70% of SABIC's shares are owned by [[Saudi Aramco]].<ref>{{Cite news |last1=Wilson |first1=Tom |last2=Al-Atrush |first2=Samer |date=2022-03-20 |title=Saudi Aramco net revenues double to $110bn on surging oil demand |work=Financial Times |url=https://www.ft.com/content/df47949a-380a-43ca-9286-dfa89ed9016e |archive-url=https://ghostarchive.org/archive/0Kdub |archive-date=2022-12-11 |url-access=subscription |url-status=live |access-date=2022-03-21}}</ref><ref>[https://www.forbes.com/global2000/#p_1_s_acompanyRankOverall_All_All_SaudiArabia Forbes: Global 2000 Leading Companies] ''Forbes Middle East''</ref> It is active in petrochemicals, chemicals, industrial polymers and fertilizers.<ref>{{cite web |url= https://www.investing.businessweek.wallst.com/research/stocks/snapshot/snapshot_article.asp?ticker=SABIC:AB |title=SAUDI BASIC INDUSTRIES CORP (SABIC:Saudi Arabia): Stock Quote & Company Profile - Businessweek|work=investing.businessweek.com |access-date=11 May 2018}}</ref> It is the second largest [[public company]] in the [[Middle East]] and [[Saudi Arabia]] as listed in [[Tadawul]].
In 2017, SABIC was ranked fourth in the world among chemical companies by [[Fortune Global 500]].<ref>[http://www.process-worldwide.com/management/markets_industries/articles/378663/] ''Process Worldwide''</ref> By the end of 2018 SABIC was the world's 281st-largest corporation.<ref>{{Cite web |date=2017-09-16 |title=SABIC Financials and News {{!}} Global 500 |url=http://fortune.com/global500/sabic/ |archive-url=https://web.archive.org/web/20170916121529/http://fortune.com/global500/sabic/ |archive-date=2017-09-16 |access-date=2024-06-12 |website=fortune.com}}</ref> In 2014, the company had sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion.<ref>{{Cite web |last1=Murphy |first1=Andrea |last2=Tucker |first2=Hank |date=June 8, 2023 |title=The Global 2000 2023 |url=https://www.forbes.com/lists/global2000/ |access-date=2024-06-12 |website=Forbes |language=en}}</ref> It also has been recognized as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021.<ref>{{Cite web |title=Brand Spotlight: SABIC {{!}} Brand Finance |date=2 February 2021 |url=https://brandfinance.com/insights/brand-spotlight-sabic |access-date=2022-04-05 |language=en-US}}</ref>
[[File:SABIC office Sittard.jpg|thumb|260x260px|SABIC European Head Office in [[Sittard]], the Netherlands]]
==History==
SABIC was founded in 1976 by royal decree to convert oil by-products into useful chemicals, polymers, and fertilizers.<ref name="sher">{{cite journal|last=Hertog|first=Steffen|title=Petromin: the slow death of statist oil development in Saudi Arabia|url=http://eprints.lse.ac.uk/29865/1/Petromin_the_Slow_Death_of_Statist_Oil_Development_in_Saudi_Arabia_(LSERO).pdf|journal=Business History|year=2008|volume=50|issue=5|pages=645–667|doi=10.1080/00076790802246087|s2cid=154116939|access-date=16 September 2013}}</ref> The first chairman of the company was [[Ghazi Abdul Rahman Al Gosaibi]], the Minister of Industry and Electricity, and the first CEO was [[Abdulaziz bin Abdullah Al Zamil]].<ref name="sher" />
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 tonnes; five years later production rose to 13 million tonnes and by 2003 production had risen to 42 million tonnes and by 2012 to over 60 million tonnes. SABIC employs more than 40,000 people globally and has 60 manufacturing and compounding plants in over 40 countries.<ref>[http://www.arabnews.com/?page=6&section=0&article=127085&d=5&m=10&y=2009&pix=business.jpg&category=Business Arabnews.com]</ref>
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.<ref name="sab">[http://www.sabic.com/corporate/en/ourcompany/factsandfigures/production.aspx SABIC.com]</ref>
==Operations==
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.<ref>{{Cite web|title = SABIC announces global operational transformation to better meet customer needs {{!}} News {{!}} News & Media {{!}} SABIC|url = http://www.sabic.com/corporate/en/newsandmediarelations/news/2015/all/20151008-SABIC-announces-global-operation-transformation|website = www.sabic.com|access-date = 2015-10-08}}</ref> This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU.<ref>{{Cite web|url=http://www.chemicals-technology.com/projects/safco/|title=Offshore Technology &#124; Oil and Gas News and Market Analysis - Oil and gas news and in-depth feature articles on the biggest offshore projects, exploration and decommissioning technology and innovation, as well as data on the latest oil price trends}}</ref><ref>{{Cite web |date=8 October 2015 |title=Sabic dissolving Innovative Plastics unit, leaving Pittsfield, Mass., HQ {{!}} Plastics News |url=http://www.plasticsnews.com/article/20151008/NEWS/151009873/sabic-dissolving-innovative-plastics-unit-leaving-pittsfield-mass-hq |access-date=2015-10-08 |website=www.plasticsnews.com}}</ref>
In July 2002, SABIC commenced operations in Europe after the $2 billion acquisition of the petrochemicals business of Dutch group [[DSM (company)|DSM]].<ref>{{cite web| url=https://www.nytimes.com/2002/04/04/business/saudi-chemical-maker-in-dutch-acquisition.html |title=Saudi Chemical Maker in Dutch Acquisition |date=April 4, 2002 |work=New York Times |access-date=24 March 2020}}</ref> SABIC Europe, SABIC's European subsidiary, produces over 2 million tonnes of polymers and over 5 million 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.<ref name="sab"/> 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 2004, the value of SABIC shares, listed on the [[Saudi Stock Exchange]] (Tadawul), increased 170% while its net profits increased by 112% from 2003 to 2004.<ref name="Zawya.com">[http://www.zawya.com/cm/profile.cfm/cid5361 Zawya.com]</ref>
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 & 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 {{Currency|375|SAR}} billion, the equivalent of {{Currency|100|US}} billion) and the second-largest by market value outside the US and UK.<ref name="Zawya.com"/>
In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds ([[Sukuk]]) that are estimated to range between {{Currency|1|SAR}} billion ({{Currency|266.67|US}} million) and {{Currency|3|SAR}} billion ({{Currency|800|US}} 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).<ref name="SABIC.com">[http://www.sabic.com/corporate/en/ourcompany/sabicworldwide/default.aspx SABIC.com]</ref>
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 {{Currency|11.6|US}} billion cash deal, including {{Currency|8.7|US}} billion of its liabilities,<ref>[https://www.nytimes.com/2007/05/22/business/22plastics.html/ ''The New York Times'' 22 May 2007]</ref> and launched SABIC Innovative Plastics.<ref>[http://www.sabic-ip.com SABIC.com]</ref> In that year, the company ranked 145 (previous rank: 301) in the [[Forbes Global 2000]] list.<ref>[https://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank_2.html Forbes Global 2000, 2008]</ref> As of 2014, SABIC Innovative Plastics<ref>[http://www.sabic-ip.com SABIC-IP.com]</ref> is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.<ref name="SABIC.com"/>
In July 2009, SABIC received approval from the Chinese government to build a {{Currency|3|US}} billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.<ref>{{cite news |url= http://uk.reuters.com/article/sabic-sinopec-idUKLB9933920090711 |archive-url= https://web.archive.org/web/20200205115122/https://uk.reuters.com/article/sabic-sinopec-idUKLB9933920090711 |url-status= dead |archive-date= February 5, 2020 |title=Saudi SABIC says China govt approved Sinopec JV|work=uk.reuters.com |year=2011 |access-date=19 August 2011 |first=Souhail |last=Karam}}</ref>
In January 2018, SABIC announced that it had acquired a 24.99% stake in [[Clariant]], the Swiss specialty chemical manufacturer. The stake was acquired from activist investor [[White Tale]], and at Clariant's prevailing market-capitalisation would have been valued in the region of $2.4bn. The actual transaction price was undisclosed. SABIC CEO Yousef Al-Benyan had previously stated, in November 2017, that the company was looking to spend $3bn-$10bn on acquisitions over the next 10 years.
On March 27, 2019, SABIC announced that state-owned energy company [[Saudi Aramco]] signed a share purchase agreement to acquire a 70% majority stake in SABIC from the [[Public Investment Fund]] of Saudi Arabia in a private transaction worth $69.1 billion.<ref>{{Cite web|url=http://sustg.com/saudi-aramco-agrees-to-buy-70-stake-in-sabic-from-kingdoms-public-investment-fund/|title=Saudi Aramco Agrees to Buy 70% Stake in SABIC from Kingdom's Public Investment Fund {{!}} SUSTG.com – News, Analysis, and Features on all things Saudi Arabia|language=en-US|access-date=2019-03-28}}</ref> The transaction was completed in June 2020.<ref>{{cite web|url=https://www.ft.com/content/8bd1f982-6a67-4542-9655-fa3276dc64ff |archive-url=https://ghostarchive.org/archive/20221211/https://www.ft.com/content/8bd1f982-6a67-4542-9655-fa3276dc64ff |archive-date=2022-12-11 |url-access=subscription |url-status=live|title=Saudi Aramco extends payment plan as it closes $69bn Sabic deal|newspaper=Financial Times|access-date=2020-06-18}}</ref>
==Production and major expansions==
Expansion operations and investments supposedly amounted to {{Currency|20|US}} billion in 2007 and {{Currency|70|US}} 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. SABIC supposedly can produce over 135 million metric tons per year.<ref>[http://www.sabic.com/corporate/en/ourcompany/corporateprofile/default.aspx SABIC.com]</ref>
==Financial performance==
Net profits of SABIC in 2008 touched {{Currency|22|SAR}} billion ({{Currency|5.86|US}} billion), while total assets stood at {{Currency|272|SAR}} billion ({{Currency|72.5|US}} billion) at the end of 2008 and the value of current assets at the end of 2008 stood at {{Currency|95|SAR}} billion ({{Currency|25|US}} billion).<ref>[http://www.sabic.com/corporate/en/ourcompany/factsandfigures/financialperformance.aspx SABIC.com]</ref> The Fortune 500 ranking set SABIC revenues as of $40.2 billion.{{When|date=January 2014}}
SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter of 2010 was {{Currency|5.33|SAR}} billion, compared to net income of {{Currency|3.65|SAR}} billion in the same period the previous year, representing an increase of 46 percent and compared to {{Currency|5.02|SAR}} billion for the previous quarter, a rise of 6 percent.{{citation needed|date=December 2020}}
According to the 2019 Fortune Global 500 list, SABIC reported $45.1 billion in revenues and $5.7 billion in profits for the 2018-2019 [[Fiscal Year|FY]], ranking it in fourth place among chemical companies and #252 in the list.<ref>{{Cite web|url=https://fortune.com/global500/2019/sabic/|title = SABIC}}</ref>
==Subsidiaries<ref>{{Cite web |title=SABIC - Affiliates |url=https://www.sabic.com/en/about/corporate-profile/affiliates |access-date=2023-04-18 |website=www.sabic.com}}</ref>==
{{Div col|colwidth=22em}}
*Ibn Sina<ref>{{cite news |title=IBN SINA signs engineering plastic project contract |url=https://www.arabnews.com/news/457652 |work=Arab News |date=11 July 2013 |language=en}}</ref>
*Saudi-European Petrochemical Company (Ibn Zahr)
*Saudi Carbon Fiber Company
*Saudi Petrochemical Company (Sadaf)
*National Industrial Gases Co (Gas)
*Petrokemya
*Kemya
*Saudi Methanol Co (Ar-Razi)
*Yanpet
*[[Jingga Bin Rasyid Oil Company]]
*Arabian Industrial Fibers Company (Ibn Rushd)
*Sharq
*[[SABIC Agri-Nutrients]]
*Jubail United Petrochemical Company (United)
*[[Yansab]]
*Sabtank
*Saudi Kayan
*Scientific Design
{{div col end}}
*Samac
==Products==
{{Div col|colwidth=22em}}
*[[Ethylene]]
*[[Propylene]]
*[[Butadiene]]
*[[1-butene|Butene-1]]
*[[1-Hexene|Hexene-1]]
*[[1-Octene|Octene-1]]
*[[1-Decene|Decene-1]]
* dodecene-1 (C12)
* Diodecene-1 (C14-18)
* Wax (C20+)
*CIE (crude industrial ethanol)
*MTBE ([[methyl tert-butyl ether]])
*[[Styrene]] Monomer
*[[Benzene]]
*[[Paraxylene]]
*CBO (carbon black oil)
*[[Caustic soda]]
*EDC ([[dichloroethylene|ethylene dichloride]])
*VCM ([[vinyl chloride]] monomer)
*[[Phenol]]
*[[Acetone]]
*[[Bisphenol A]]
*[[Fertilizer]]s
*[[Methanol]]
*Lexan (A line of [[polycarbonate]] products)<ref name="McKeen 2016 p. ">{{cite book | last=McKeen | first=L.W. | title=Fatigue and Tribological Properties of Plastics and Elastomers | publisher=Elsevier Science | series=Plastics Design Library | year=2016 | isbn=978-0-323-44205-3 | url=https://books.google.com/books?id=ZY94CgAAQBAJ | access-date=2024-04-12 | page=}}</ref>
*[[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]]
*[[Butyl rubber|HaloButyl]]
*[[Polybutadiene]] rubber
*[[acrylonitrile butadiene styrene]]
*[[Polyethylene]]
*[[Polycarbonate]]
*[[Polypropylene]]
* Detergent Alcohols (Fatty Alcohol)
* Fatty Alcohol Ethoxylates
* [[Polyethylene Glycol]] (PEGs)
{{div col end}}
==See also==
*[[List of largest companies in Saudi Arabia]]
*[[List of companies of Saudi Arabia]]
*[[Saudi Aramco]]
==References==
{{Reflist|33em}}
==External links==
{{commons category|SABIC}}
*[http://www.sabic.com.sa/ Official website]
*[http://www.sabic-ip.com/ SABIC Innovative Plastics]
{{authority control}}
[[Category:SABIC| ]]
[[Category:1976 establishments in Saudi Arabia]]
[[Category:Chemical companies established in 1976]]
[[Category:Companies listed on Tadawul]]
[[Category:Companies in the MSCI Tadawul 30 Index]]
[[Category:Plastics companies of Saudi Arabia]]
[[Category:Government-owned companies of Saudi Arabia]]
[[Category:Petrochemical companies]]
[[Category:Saudi Arabian brands]]
[[Category:2019 mergers and acquisitions]]
[[Category:Multinational companies headquartered in Saudi Arabia]]
[[Category:Public Investment Fund]]