Sabic stands for Saudi Basic Industries Corporation and is a subsidiary of Saudi Aramco. Sabic’s motto: Chemistry that Matters. Sabic is in the top 5 largest chemical producers in general and specifically for polyethylene, polypropylene and ethylene glycol.
1976 – SABIC is created by royal decree as a public company based in Riyadh (Saudi Arabia) to use by-products of oil extraction to produce chemicals, polymers and fertilizers. 70% of Sabic is owned by the Saudi Arabian government (Public Investment Fund of Saudi Arabia). The remaining 30% are publicly traded on the Saudi stock exchange.
2006 – SABIC established the “SABIC Sukuk Company” to issue Islamic bonds, Sharia compliant bonds (Sukuk).
2015 – Restructuring; eventually leading to four strategic business units – Petrochemicals, Specialties, Agri-Nutrients, and Metals.
2019 – Saudi Aramco signs an agreement to buy the 70% of Sabic owned by the Public Investment Fund of Saudi Arabia. Transaction is worth $69.1 billion.
2020 – SABIC’s total market value lost 40 % due to the falling oil prices during the Corona crisis. Sabic’s total value was estimated at around US$56.5 billion in May 2020, which would make the value of Aramco’s stake around US$40 billion. However, the purchase transaction by Saudi Aramco was completed in June 2020 for the intitial value of $69.1 billion.
2002 – Sabic acquires DSM’s petrochemical business in Europe with manufacturing facilities in The Netherlands, Germany and the UK.
2006 – Sabic acquires Huntsman Petrochemicals (UK) and renamed it SABIC UK Petrochemicals adding capacity to its Europe operations.
2007 – Sabic acquires GE Plastics and converts it to their Specialties Strategic Business Unit, opening the way for advanced materials.
2009 – Sabic receives approval to build a petrochemical complex in China.
2017 – Sabic CEO claims the company will spend between $3bn-$10bn on acquisitions over the next 10 years.
2019 – Due to unfavourable market conditions, Clariant and SABIC decide to suspend negotiations regarding their joint-venture in High Performance Materials.
- Presence: over 50 countries
- Employees: >33.000
- Headquarter: Riyadh (Saudi Arabia)
- 2019 Net profits: US$ 1.5 billion.
- 2019 Total assets: US$ 82.6 billion
- 2019 Production: 72.6 million metric tons
Circular Economy and Bioplastics
SABIC was the first to launch bio-polycarbonate based on certified renewable feedstock in 2019. This is sold under the Lexan resin brand.
Read more: Sabic Bio-Polycarbonate
Trucircle solutions encompasses circular materials and technologies including:
- certified circular polymers from the chemical recycling of mixed plastic waste;
- certified bio-based renewable polymers;
- new polycarbonate (PC) based on certified renewable feedstock;
- mechanical recycled polymers.
Sabic, DSM and UPM Partnership
UPM Biofuels supplies bio-based feedstock from the residue of the pulping process under the brand UPM BioVerno to SABIC who converts it into Bio-ethylene under the TRUCIRCLE brand. DSM uses the Trucircle bio-ethylene to produce bio-based Dyneema fiber.
Sabic supplies Bio-PP to UPM for their Formi EcoAce brand, a biocomposite used in food contact, personal care and consumer goods made by injection molding or extrusion.