These Are The Key Factors For SABIC’s Success
Saudi Basic Industries Corporation, known as SABIC, is a Saudi chemical manufacturing company. 70% of SABIC’s shares are owned by Saudi Aramco. It is active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals the founder of Saudi Basic Industries Corporation is Khalid of Saudi Arabia Saudi Basic Industries Corporation (SABIC) is a petrochemical company headquartered in Riyach, Saudi Arabia. It was set up in 1976 by the Saudi government to add value to the country’s natural re-sources. The industrial model consisted of capturing crude oil-related gases and to delivering them as raw material to manufacture various industrial commodities. A chain of basic industries were located next to these natural resources to contribute to downstream industrial diversification in Saudi Arabia. Throughout the 1980s, SABIC was headquartered in Al-Jubail city. The latter consequently witnessed an intense and empowering transformation from a small fishing village on the Arabian Sea into a modern industrial hub.
While SABIC built the basic industries, the Royal Commission put in place the necessary infrastructure. SABIC is majority owned by the Saudi government (70 percent) along with private investors from Saudi and other GCC countries (30 percent).SABIC is the fourth largest petrochemical company in the world, based on turnover. The industry leader is the German BASF, followed by the U.S. Dow and the Dutch LyondellBasell. SABIC is the largest company in the Middle East with a market capitalization of $94.4 billion (2014). SABIC’s total assets were valued at $33 billion and sales reached $50.4 billion in May, 2014. The company employs 40,000 employees in 45 countries. It has accumulated 9,000 patent portfolio filings. SABIC is the world leader in the production of MTBE, ethylene glycol, and fertilizers, and the second largest producer of methanol (2013). SABIC consists of six strategic business units that manufacture four different products: chemicals, fertilizers, metals, and plastics. The chemicals represent over 60 percent of the company total production by value.
SABIC’s manufacturing network in Saudi Arabia comprises 18 technology and innovation centers that employ 1,400 scientists. At the international stage, SABIC’s global presence has grown steadily over the years. The company is partner in three regional ventures in Bahrain. In 2002, SABIC Europe Petrochemical (SEP) was established after the acquisition of the petrochemical business from the Dutch group DSM. SEP has two major manufacturing complexes in Geleen in the Netherlands and Gelsenkirchen in Germany. The global network of the company includes strategically located offices, distribution centers, and storage facilities to better serve its key markets worldwide. SABIC has established technology centers that serve as satellite research and development units. Recently, it has expanded its business into China with the building of new petrochemical plants.
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