SABIC PRESSES PLAN TO CLAIM LARGER SHARE OF PETROCHEM MARKET

Saudi Arabia's Saudi Basic Industries Corp. (Sabic) plans to increase petrochemical production, launch new products, decentralize sales activities, and put in place advanced research and development by 1995. The goal is to remain competitive, Minister of Industry and Electricity Abdulaziz Al-Zamil says in Sabic's 1990 annual report. The company's long range goal is to develop a key role in world markets (OGJ, Jan. 7, p. 19).

Sept. 2, 1991

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The goal is to remain competitive, Minister of Industry and Electricity Abdulaziz Al-Zamil says in Sabic's 1990 annual report. The company's long range goal is to develop a key role in world markets (OGJ, Jan. 7, p. 19).

Al-Zamil, in a message as chairman of the Sabic board, notes that in 1990 the company continued to expand and strengthen its marketing, and technological and employee structures despite the onset of the Persian Gulf crisis and soft world chemical prices.

Total production of basic chemicals-including those used internally by Sabic to produce downstream products-plastic resins, fertilizers, and metals amounted to 13.07 million metric tons, an increase of nearly 8.8% over 1989.

Shipments, including shares of joint venture partners, totaled 10.5 million metric tons, an increase of 12%.

The gulf crisis did not disrupt production or expansion projects. In 1990, Sabic began producing 1.3 million metric tons/year of compound fertilizers and granular urea.

Ibn Salamah also notes the coming expansions of Sabic's current products: ethylene, methanol, ethylene glycol, polyvinyl chloride, polyethylene, ammonia, urea, industrial gases, and steel. New products will include propylene, polypropylene, butadiene, and benzene.

Chemicals accounted for 54.4% of Sabic's total production, fertilizers 16.7%, metals 13.7%, plastics 10.9%, and gases 4.3%. Among shipments, chemicals accounted for 48%, metals 20.6%, plastics 13.4%, fertilizers 13.2%, and gases 4.8%.

The Far East bought the largest share of Sabic products, taking 27.7% of shipments. This was followed by western Europe with 25.6%, Southeast Asia with 21.3%, the Near East and the Americas with 7.6% each, Middle East with 7.3%, and Africa with 2.4%.

Other highlights of 1990 in the annual report include:

Sabic Marketing Ltd. established two more affiliates overseas: Sabic Marketing Asia Ltd., based in Hong Kong to serve Asian customers, and Sabic Services Americas Inc., based in Houston and performing marketing research and related activities in North and South America. They join established affiliates in Stamford, Conn., and London, as well as a monitoring office of Sabic Marketing Services Ltd. in Tokyo.
Construction of Sabic's Industrial Complex for Research and Development continues in Riyadh, with completion scheduled late this year. The complex will enable Sabic to formulate current products and develop new ones.