Saudi Basic Industries Corporation ( ar, الشركة السعودية للصناعات الأساسية), known as SABIC ( ar, سابك), is a Saudi chemical manufacturing company. 70% of SABIC's shares are owned by

Saudi Aramco Saudi Aramco ( ar, أرامكو السعودية '), officially the Saudi Arabian Oil Company (formerly Arabian-American Oil Company) or simply Aramco, is a Saudi Arabian public petroleum and natural gas company based in Dhahran. , it is one of ...

. It is active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals. It is the second largest

public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...

in the

Middle East The Middle East ( ar, الشرق الأوسط, ISO 233: ) is a geopolitical region commonly encompassing Arabian Peninsula, Arabia (including the Arabian Peninsula and Bahrain), Anatolia, Asia Minor (Asian part of Turkey except Hatay Pro ...

and

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the Ara ...

as listed in Tadawul. In 2017, SABIC was ranked fourth in the world among chemical companies by

Fortune Global 500 The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by ''Fortune'' magazine. Methodology Until 1989, it listed onl ...

. By the end of 2018 SABIC was the world's 281st-largest corporation. In 2014, the company had sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion. It also has been recognized as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021. SABIC office Sittard

History

SABIC was founded in 1976 by royal decree to convert oil by-products into useful chemicals, polymers, and fertilizers. The first chairman of the company was Ghazi Abdul Rahman Al Gosaibi, the Minister of Industry and Electricity, and the first CEO was Abdul Aziz Bin Abdullah Al Zamil. SABIC's founding transformed the small fishing villages of

Jubail Jubail ( ar, الجبيل, ''Al Jubayl'') is a city in the Eastern province on the Persian Gulf coast of Saudi Arabia, with a total population of 684,531 as of 2021. It is home to the largest industrial city in the world. It is also home to t ...

on the

Persian Gulf The Persian Gulf ( fa, خلیج فارس, translit=xalij-e fârs, lit=Gulf of Fars, ), sometimes called the ( ar, اَلْخَلِيْجُ ٱلْعَرَبِيُّ, Al-Khalīj al-ˁArabī), is a mediterranean sea in Western Asia. The bo ...

and Yanbu on the

Red Sea The Red Sea ( ar, البحر الأحمر - بحر القلزم, translit=Modern: al-Baḥr al-ʾAḥmar, Medieval: Baḥr al-Qulzum; or ; Coptic: ⲫⲓⲟⲙ ⲛ̀ϩⲁϩ ''Phiom Enhah'' or ⲫⲓⲟⲙ ⲛ̀ϣⲁⲣⲓ ''Phiom ǹšari''; ...

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. 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 Dammam ( ar, الدمّام ') is the fifth-most populous city in Saudi Arabia after Riyadh, Jeddah, Mecca, and Medina. It is the capital of the Eastern Province. With a total population of 1,252,523 as of 2020. The judicial and administrative ...

. SABIC is also partners in three regional ventures based in

Bahrain Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and a ...

. SABIC is a market leader in key products such as ethylene, ethylene glycol, methanol, MTBE and polyethylene.SABIC.com
/ref> SABIC's wholly owned subsidiary, the Saudi Iron and Steel Company (Hadeed), based in Al Jubail, is one of the world's biggest fully integrated producers.

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. This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU. In July 2002, SABIC commenced operations in Europe after the $2 billion acquisition of the petrochemicals business of Dutch group DSM. 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 Geleen (; li, Gelaen ) is a city in the southern part of the province of Limburg in the Netherlands. With 31,670 inhabitants in 2020, it is part of the municipality of Sittard-Geleen. Geleen is situated along the river Geleenbeek, a right trib ...

in the Netherlands and

Gelsenkirchen Gelsenkirchen (, , ; wep, Gelsenkiärken) is the 25th most populous city of Germany and the 11th most populous in the state of North Rhine-Westphalia with 262,528 (2016) inhabitants. On the Emscher River (a tributary of the Rhine), it lies ...

in Germany. 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 Saudi Stock Exchange () or Tadāwul () is a stock exchange in Saudi Arabia. Tadāwul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an info ...

(Tadawul), increased 170% while its net profits increased by 112% from 2003 to 2004.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 A polyolefin is a type of polymer with the general formula (CH2CHR)n where R is an alkyl group. They are usually derived from a small set of simple olefins (alkenes). Dominant in a commercial sense are polyethylene and polypropylene. More speciali ...

Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...

and

Fitch Ratings Fitch Ratings Inc. is an American credit rating agency and is one of the " Big Three credit rating agencies", the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations (NRS ...

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 billion, the equivalent of billion) and the second-largest by market value outside the US and UK. In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds ( Sukuk) that are estimated to range between billion ( million) and billion ( million). In January 2007, SABIC Europe took over

Huntsman Corporation Huntsman Corporation is an American multinational manufacturer and marketer of chemical products for consumers and industrial customers. Huntsman manufactures assorted polyurethanes, performance products, and adhesives for customers like BMW, ...

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).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 General Electric Company (GE) is an American multinational conglomerate founded in 1892, and incorporated in New York state and headquartered in Boston. The company operated in sectors including healthcare, aviation, power, renewable ene ...

's Plastics division, in a billion cash deal, including billion of its liabilities, and launched SABIC Innovative Plastics. In that year, the company ranked 145 (previous rank: 301) in the

Forbes Global 2000 The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by ''Forbes'' magazine. "The Global 2000" annual ranking is assembled by ''Forbes'' using a weighted assessment of four metrics: sales, profit ...

list. As of 2014, SABIC Innovative Plastics is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide. In July 2009, SABIC received approval from the Chinese government to build a billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market. In January 2018, SABIC announced that it had acquired a 24.99% stake in

Clariant Clariant AG is a Swiss multinational speciality chemicals company, formed in 1995 as a spin-off from Sandoz. The company is focused on four business areas: care chemicals (consumer and industrial); catalysis; natural resources (oil & mining, min ...

, the Swiss specialty chemical manufacturer. The stake was acquired from activist investor

White Tale White is the lightest color and is achromatic (having no hue). It is the color of objects such as snow, chalk, and milk, and is the opposite of black. White objects fully reflect and scatter all the visible wavelengths of light. White on ...

, 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

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. The transaction was completed in June 2020.

Production and major expansions

Expansion operations and investments are projected to amount to billion in 2007 and 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. By 2020, SABIC intends to produce over 135 million metric tons per year.

Financial performance

Net profits of SABIC in 2008 touched billion ( billion), while total assets stood at billion ( billion) at the end of 2008 and the value of current assets at the end of 2008 stood at billion ( billion). The Fortune 500 ranking set SABIC revenues as of $40.2 billion. SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter of 2010 was billion, compared to net income of billion in the same period the previous year, representing an increase of 46 percent and compared to billion for the previous quarter, a rise of 6 percent. 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 FY, ranking it in fourth place among chemical companies and #252 in the list.

Subsidiaries
/h1>
Hadeed Ibn Sina 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) Al-Bayroni * Yanpet Arabian Industrial Fibers Company (Ibn Rushd) Sharq *
Safco Safco is the first petrochemical company in Saudi Arabia. It was established in 1965. SAFCO is one of the largest producers of chemicals in the world with an annual production capacity of over 4.9 million tons of fertilizers. SABIC owns 42.99% w ...
Jubail United Petrochemical Company (United)
Yansab Yansab is a SABIC, affiliate company in Saudi Arabia, and is the largest SABIC petrochemical complex. It will has an annual capacity exceeding 4 million metric tons (MT) of petrochemical products including: 1.3 million MT ( metric-tons) of eth ...
* Sabtank *
Saudi Kayan Saudi may refer to: * Saudi Arabia * Saudis, people from Saudi Arabia * Saudi culture, the culture of Saudi Arabia * House of Saud The House of Saud ( ar, آل سُعُود, ʾĀl Suʿūd ) is the ruling royal family of Saudi Arabia. It is c ...
Scientific Design

Products

Ethylene Ethylene (IUPAC name: ethene) is a hydrocarbon which has the formula or . It is a colourless, flammable gas with a faint "sweet and musky" odour when pure. It is the simplest alkene (a hydrocarbon with carbon-carbon double bonds). Ethylene ...
*
Propylene Propylene, also known as propene, is an unsaturated organic compound with the chemical formula CH3CH=CH2. It has one double bond, and is the second simplest member of the alkene class of hydrocarbons. It is a colorless gas with a faint petro ...
*
Butadiene 1,3-Butadiene () is the organic compound with the formula (CH2=CH)2. It is a colorless gas that is easily condensed to a liquid. It is important industrially as a precursor to synthetic rubber. The molecule can be viewed as the union of two v ...
*
Butene-1 1-Butene (or 1-Butylene) is the organic compound with the formula CH3CH2CH=CH2. It is a colorless gas that is easily condensed to give a colorless liquid. It is classified as a linear alpha-olefin. It is one of the isomers of butene (butylene). I ...
* Hexene-1 * Octene-1 * Decene-1 * dodecene-1 (C12) * Diodecene-1 (C14-18) * Wax (C20+) CIE (
crude industrial ethanol Crude can refer to: Crude oil or simply crude, the unprocessed form of petroleum * ''Crude'' (2007 film), an Australian documentary about the geology and economics of crude oil * ''Crude'' (2009 film), an American documentary about oil compan ...
) MTBE (
methyl tert-butyl ether Methyl ''tertiary''-butyl ether (MTBE), also known as methyl tert-butyl ether and ''tert''-butyl methyl ether, is an organic compound with a structural formula (CH3)3COCH3. MTBE is a volatile, flammable, and colorless liquid that is sparingly sol ...
)
Styrene Styrene () is an organic compound with the chemical formula C6H5CH=CH2. This derivative of benzene is a colorless oily liquid, although aged samples can appear yellowish. The compound evaporates easily and has a sweet smell, although high concen ...
Monomer *
Benzene Benzene is an organic chemical compound with the molecular formula C6H6. The benzene molecule is composed of six carbon atoms joined in a planar ring with one hydrogen atom attached to each. Because it contains only carbon and hydrogen atoms ...
* Paraxylene CBO (carbon black oil) Caustic soda EDC ( ethylene dichloride) VCM (
vinyl chloride Vinyl chloride is an organochloride with the formula H2C=CHCl. It is also called vinyl chloride monomer (VCM) or chloroethene. This colorless compound is an important industrial chemical chiefly used to produce the polymer polyvinyl chloride (PVC ...
monomer) *
Phenol Phenol (also called carbolic acid) is an aromatic organic compound with the molecular formula . It is a white crystalline solid that is volatile. The molecule consists of a phenyl group () bonded to a hydroxy group (). Mildly acidic, it r ...
*
Acetone Acetone (2-propanone or dimethyl ketone), is an organic compound with the formula . It is the simplest and smallest ketone (). It is a colorless, highly volatile and flammable liquid with a characteristic pungent odour. Acetone is miscibl ...
*
Bisphenol A Bisphenol A (BPA) is a chemical compound primarily used in the manufacturing of various plastics. It is a colourless solid which is soluble in most common organic solvents, but has very poor solubility in water. BPA is produced on an industrial ...
*
Fertilizer A fertilizer (American English) or fertiliser (British English; see spelling differences) is any material of natural or synthetic origin that is applied to soil or to plant tissues to supply plant nutrients. Fertilizers may be distinct from ...
s *
Steel Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistan ...
*
Methanol Methanol (also called methyl alcohol and wood spirit, amongst other names) is an organic chemical and the simplest aliphatic alcohol, with the formula C H3 O H (a methyl group linked to a hydroxyl group, often abbreviated as MeOH). It is ...
*
Lexan Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily worke ...

polycarbonate Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily work ...
* Noryl PPO Cycolac (
acrylonitrile butadiene styrene Acrylonitrile butadiene styrene (ABS) ( chemical formula (C8H8)''x''·(C4H6)''y''·(C3H3N)''z'' is a common thermoplastic polymer. Its glass transition temperature is approximately . ABS is amorphous and therefore has no true melting point. ...
) Cycoloy (
polycarbonate Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily work ...
/
acrylonitrile butadiene styrene Acrylonitrile butadiene styrene (ABS) ( chemical formula (C8H8)''x''·(C4H6)''y''·(C3H3N)''z'' is a common thermoplastic polymer. Its glass transition temperature is approximately . ABS is amorphous and therefore has no true melting point. ...
blend) *
Ultem Polyetherimide (PEI) is an amorphous, amber-to-transparent thermoplastic with characteristics similar to the related plastic PEEK. When comparing PEI to PEEK, the former is cheaper but has lower impact strength and a tighter temperature range. ...
( polyetherimide) Extem (
polyimide Polyimide (sometimes abbreviated PI) is a polymer containing imide groups belonging to the class of high-performance plastics. With their high heat-resistance, polyimides enjoy diverse applications in roles demanding rugged organic materials, e. ...
) Geloy (
acrylonitrile styrene acrylate Acrylonitrile styrene acrylate (ASA), also called acrylic styrene acrylonitrile, is an amorphous thermoplastic developed as an alternative to acrylonitrile butadiene styrene (ABS), but with improved weather resistance, and is widely used in the a ...
/
acrylonitrile butadiene styrene Acrylonitrile butadiene styrene (ABS) ( chemical formula (C8H8)''x''·(C4H6)''y''·(C3H3N)''z'' is a common thermoplastic polymer. Its glass transition temperature is approximately . ABS is amorphous and therefore has no true melting point. ...
blend) Valox (
polybutylene terephthalate Polybutylene terephthalate (PBT) is a thermoplastic engineering polymer that is used as an insulator in the electrical and electronics industries. It is a thermoplastic (semi-)crystalline polymer, and a type of polyester. PBT resists solven ...
) Verton (long fiberglass-reinforced polymers) * Xenoy (
polycarbonate Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily work ...
/ polybutylene terephthalate blend) Xylex (
polyester Polyester is a category of polymers that contain the ester functional group in every repeat unit of their main chain. As a specific material, it most commonly refers to a type called polyethylene terephthalate (PET). Polyesters include natura ...
/ polycarbonate blend) EO/EG ( ethylene oxide /
ethylene glycol Ethylene glycol ( IUPAC name: ethane-1,2-diol) is an organic compound (a vicinal diol) with the formula . It is mainly used for two purposes, as a raw material in the manufacture of polyester fibers and for antifreeze formulations. It is an o ...
) *
Carbon black Carbon black (subtypes are acetylene black, channel black, furnace black, lamp black and thermal black) is a material produced by the incomplete combustion of coal and coal tar, vegetable matter, or petroleum products, including fuel oil, fluid ...
* EPDM rubber * HaloButyl *
Polybutadiene Polybutadiene utadiene rubber BRis a synthetic rubber. Polybutadiene rubber is a polymer formed from the polymerization of the monomer 1,3-butadiene. Polybutadiene has a high resistance to wear and is used especially in the manufacture of ti ...
rubber *
acrylonitrile butadiene styrene Acrylonitrile butadiene styrene (ABS) ( chemical formula (C8H8)''x''·(C4H6)''y''·(C3H3N)''z'' is a common thermoplastic polymer. Its glass transition temperature is approximately . ABS is amorphous and therefore has no true melting point. ...
*
Polyethylene Polyethylene or polythene (abbreviated PE; IUPAC name polyethene or poly(methylene)) is the most commonly produced plastic. It is a polymer, primarily used for packaging ( plastic bags, plastic films, geomembranes and containers including b ...
*
Polycarbonate Polycarbonates (PC) are a group of thermoplastic polymers containing carbonate groups in their chemical structures. Polycarbonates used in engineering are strong, tough materials, and some grades are optically transparent. They are easily work ...
*
Polypropylene Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene. Polypropylene belongs to the group of polyolefins a ...
* Detergent Alcohols (
Fatty Alcohol Fatty alcohols (or long-chain alcohols) are usually high-molecular-weight, straight-chain primary alcohols, but can also range from as few as 4–6 carbons to as many as 22–26, derived from natural fats and oils. The precise chain length varies ...
) *
Fatty Alcohol Fatty alcohols (or long-chain alcohols) are usually high-molecular-weight, straight-chain primary alcohols, but can also range from as few as 4–6 carbons to as many as 22–26, derived from natural fats and oils. The precise chain length varies ...
Ethoxylates *
Polyethylene Glycol Polyethylene glycol (PEG; ) is a polyether compound derived from petroleum with many applications, from industrial manufacturing to medicine. PEG is also known as polyethylene oxide (PEO) or polyoxyethylene (POE), depending on its molecular we ...
(PEGs)

See also
*
List of largest companies in Saudi Arabia This article lists the largest companies of Saudi Arabia in terms of their revenue, net profit and total assets, according to the American business magazines ''Fortune'' and ''Forbes''. 2019 ''Fortune'' list This list displays all 2 Saudi compan ...
*
List of companies of Saudi Arabia Saudi Arabia is a sovereign Arab state in Western Asia constituting the bulk of the Arabian Peninsula. The country's command economy is petroleum-based but slowly diversifying; in 2017 58% of budget revenues and 85% of export earnings came from th ...
*
Saudi Aramco Saudi Aramco ( ar, أرامكو السعودية '), officially the Saudi Arabian Oil Company (formerly Arabian-American Oil Company) or simply Aramco, is a Saudi Arabian public petroleum and natural gas company based in Dhahran. , it is one of ...

References

External links

Official websiteSABIC Innovative Plastics
{{authority control 1976 establishments in Saudi Arabia Chemical companies established in 1976 Companies listed on Tadawul Plastics companies of Saudi Arabia Government-owned companies of Saudi Arabia Petrochemical companies Saudi Arabian brands 2019 mergers and acquisitions Multinational companies headquartered in Saudi Arabia Public Investment Fund