 | |
| SABIC | |
Native name | الشركة السعودية للصناعات الأساسية (سابك) |
| Company type | Public |
| Tadawul: 2010 | |
| ISIN | SA0007879121  |
| Industry | Chemicals |
| Founded | September 1976; 48 years ago (1976-09) |
| Headquarters | , |
Key people | |
| Products | Chemicals and intermediates, industrialpolymers andfertilizers |
| Revenue |  US$52.92 billion[1] (2022) |
 US$6.37 billion[1] (2022) | |
| US$4.41 billion[1] (2022) | |
| Total assets | US$83.49 billion[1] (2022) |
| Total equity | US$49.61 billion[1] (2022) |
| Owner | Saudi Aramco (70%) |
Number of employees | 32,721 (2019) |
| Website | www |
Saudi Basic Industries Corporation (Arabic:الشركة السعودية للصناعات الأساسية), known asSABIC (Arabic:سابك[a]), is a Saudi chemical manufacturing company. 70% of SABIC's shares are owned bySaudi Aramco.[2][3] It is active in petrochemicals, chemicals, industrial polymers and fertilizers.[4] It is the second largestpublic company in theMiddle East andSaudi Arabia as listed inTadawul.
In 2017, SABIC was ranked fourth in the world among chemical companies byFortune Global 500.[5] By the end of 2018 SABIC was the world's 281st-largest corporation.[6] In 2014, the company had sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion.[7] It also has been recognized as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021.[8]
SABIC was founded in 1976 by royal decree to convertoil by-products into useful chemicals, polymers, and fertilizers.[9] The first chairman of the company wasGhazi Abdul Rahman Al Gosaibi, the Minister of Industry and Electricity, and the first CEO wasAbdulaziz bin Abdullah Al Zamil.[9]
SABIC's founding transformed the small fishing villages ofJubail on thePersian Gulf andYanbu on theRed 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.[10]
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 inYanbu Industrial City on the Red Sea and one is in the eastern city ofDammam. SABIC also partners in three regional ventures based inBahrain. SABIC is a market leader in key products such as ethylene,ethylene glycol,methanol,MTBE andpolyethylene.[11]
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.[12] This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU.[13][14]
In July 2002, SABIC commenced operations in Europe after the $2 billion acquisition of the petrochemicals business of Dutch groupDSM.[15] 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 inGeleen in the Netherlands andGelsenkirchen in Germany.[11] 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 theSaudi Stock Exchange (Tadawul), increased 170% while its net profits increased by 112% from 2003 to 2004.[16]
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 theFortune 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 andpolyolefin.Standard & Poor's andFitch 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 exceededر.س 375 billion, the equivalent ofUS$100 billion) and the second-largest by market value outside the US and UK.[16]
In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range betweenر.س 1 billion (US$266.67 million) andر.س 3 billion (US$800 million).
In January 2007, SABIC Europe took overHuntsman 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).[17]
In 2008, SABIC Europe produced 7.3 million metric tons of petrochemicals, mainly for the European market.
On May 21, 2007, SABIC acquiredGeneral Electric's Plastics division, in aUS$11.6 billion cash deal, includingUS$8.7 billion of its liabilities,[18] and launched SABIC Innovative Plastics.[19] In that year, the company ranked 145 (previous rank: 301) in theForbes Global 2000 list.[20] As of 2014, SABIC Innovative Plastics[21] is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.[17]
In July 2009, SABIC received approval from the Chinese government to build aUS$3 billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.[22]
In January 2018, SABIC announced that it had acquired a 24.99% stake inClariant, the Swiss specialty chemical manufacturer. The stake was acquired from activist investorWhite 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 companySaudi Aramco signed a share purchase agreement to acquire a 70% majority stake in SABIC from thePublic Investment Fund of Saudi Arabia in a private transaction worth $69.1 billion.[23] The transaction was completed in June 2020.[24]
SABIC moved its European headquarters fromSittard toAmsterdam in 2024.[25]
Expansion operations and investments supposedly amounted toUS$20 billion in 2007 andUS$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. SABIC supposedly can produce over 135 million metric tons per year.[26]
Net profits of SABIC in 2008 touchedر.س 22 billion (US$5.86 billion), while total assets stood atر.س 272 billion (US$72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood atر.س 95 billion (US$25 billion).[27] 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 wasر.س 5.33 billion, compared to net income ofر.س 3.65 billion in the same period the previous year, representing an increase of 46 percent and compared toر.س 5.02 billion for the previous quarter, a rise of 6 percent.[citation needed]
According to the 2019 Fortune Global 500 list, SABIC reported $45.1 billion in revenues and $5.7 billion in profits for the 2018-2019FY, ranking it in fourth place among chemical companies and #252 in the list.[28]
Notes
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