2007/8/31 SABIC

Launch of SABIC INNOVATIVE PLASTICS expands SABIC's global presence

Saudi Basic Industries Corporation (SABIC) today announced the completion of its purchase of GE Plastics from General Electric for a purchase price of US$11.6 billion.  The announcement was made by SABIC Chairman, HH Prince Saud bin Abdullah bin Thenayan Al-Saud.

The former GE unit is now SABIC Innovative Plastics,  a new business addition to SABIC that will focus on the global growth of thermoplastics and engineering plastics through innovation to serve the automotive, electronics, healthcare, and construction sectors.  Brian Gladden has been appointed CEO of SABIC Innovative Plastics.

"We are very pleased to confirm the completion of this acquisition", said Prince Saud.

"This acquisition will significantly broaden SABIC's plastics product portfolio and provide access to new global markets. The people, products and technologies of SABIC Innovative Plastics bring a legacy of material innovation and expertise that I believe will enable SABIC to further strengthen and grow its position as a world-class leader in the plastics industry. We will maintain our commitment to the people, communities and facilities that have contributed to this world-class organization", he said.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, added, "We were able to secure the required financing  due to recognition of SABIC in the global financial and capital markets, sound business profile of SABIC Innovative Plastics and its world-class diversified product portfolio. Hence, we successfully completed the deal on time, despite the prevailing turbulence in the global credit markets. This acquisition will further enhance SABIC's position amongst the leading global companies. Our global manufacturing capabilities will be further expanded to include significant additional plants and compounding operations in the Americas, Europe and Asia Pacific regions."

"SABIC Innovative Plastics is another strategically important step in our global growth and ongoing commitment to serve our customers - both in terms of geography and in meeting their needs for innovative plastics solutions and products that deliver outstanding value", he said.

Following earlier acquisitions of DSM and Huntsman's petrochemicals businesses in Europe, SABIC now has more than 30,000 employees. The company has an expanded global network of manufacturing facilities, Research & Technology centers and sales offices.  With a presence in more than 100 countries, SABIC is well-positioned to meet the needs of its global customers.

SABIC Innovative Plastics is a global supplier of plastic resins and compounds widely used in automotive, healthcare, consumer electronics, transportation, performance packaging, building and construction, telecommunications and optical media applications.  The company manufactures and compounds polycarbonate, ABS, ASA, PPE, PC/ABS, PBT and PEI resins, as well as the LNP line of high-performance specialty compounds, under such well known brand names as Lexan®, Cycolac®, Geloy®, Noryl®, Cycoloy®, Valox® and Ultem®. 

The Specialty Film and Sheet division of SABIC Innovative Plastics manufactures high-performance Lexan sheet and film products used in thousands of demanding applications worldwide.  The dedicated automotive organization is an experienced, worldwide supplier, offering leading plastics solutions for five key automotive segments:  body panels and glazing; under the hood applications; component; structures and interiors; and lighting.


June 23, 2008

SABIC to build new PP compounding plant in Genk

SABIC is to build a new compounding plant in Genk, Belgium. The plant will have an initial production capacity of 110kt SABIC PP compound and 30kt of SABIC STAMAX long glass fiber PP. It is expected to come on-stream at the beginning of 2010.

gOur new plant represents an important first step in growing SABICfs worldwide PP compounding capability and will allow SABIC to follow the growth of our large automotive customers in Western and Central Eastern Europeh, said Mark Neville, Business Unit Director SABIC PP Automotive.

gThis plant will be the biggest green field PP compounding plant ever built in Europe and has been designed with fully optimized production and logistics flows in mind.

It will also be capable of housing an additional compounding line in the future taking its ultimate capacity in excess of 170Ktes
h continued Mark.

gThe plant in Genk will also be the home of SABICfs Compounding Innovation Centre (CIC) with 3 pilot lines designed to speed the development cycle for new products and processes thus improving our responsiveness and flexibilityh said Kees Verbraak, Manager Global Technical Marketing for SABIC PP Automotive. gAs the business develops we plan to add CICs in other regions of the worldh he added.

gSABIC is committed to growing its position in the global automotive industry with its broad portfolio of SABIC PP, SABIC PP compound and SABIC STAMAX long glass fiber productsh, said Abdulsalam Al-Mazro, VP Polymers, SABIC.

gWe are responding to an increasingly strong pull from the OEMs and Tiers for raw material suppliers to have global capability. We are, of course, also examining locations for further PP compounding plant expansions worldwideh

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