Our vision. Thanks to the foresight of our founders, SABIC is now one of the world s fastest-growing petrochemical companies.

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Transcription:

SABIC SABIC was founded in 1976 as the fruit of an ambitious vision. Natural gas, a previously useless by-product of oil extraction has historically been wasted through environmentally damaging flaring. Our vision has been to transform it into valuable petrochemical products that we could supply to the world. 1 2 3 Our business Our products Supporting our products > > >

Our vision Thanks to the foresight of our founders, SABIC is now one of the world s fastest-growing petrochemical companies.

Our business SABIC: a vision made real We decided to build high-technology manufacturing companies close to the source of the gas and oil. These would make high-quality petrochemical products. Our creation was closely associated with the aspirations of Saudi Arabia as a developing nation. Our business today Thanks to the foresight of our founders, SABIC is now one of the world s fastest-growing global petrochemical companies. We are one of the largest petrochemical companies in the world, among the world s largest exporters of fertilizers, polymers and chemicals, and we are also a leading steel-maker in the Middle East. In terms of product diversity, production capacity and sales, we compete with the biggest and best companies in the world. Our vision is to be the preferred world leader in chemicals. We are ambitious and competitive, and we will achieve our aim by supplying high-quality industrial products and services to our customers. A publicly owned company SABIC is a public company, headquartered in Riyadh and listed on Tadawul, the Saudi Arabian stock exchange. The Saudi Arabian government holds 70% of our shares, and private investors in Saudi Arabia and other Gulf Co-operation Council countries hold the remaining 30%.

SABIC a recipe for success Our success is the result of our focus on investment in local partnerships, the best technology and innovation programs and an ambitious global growth strategy.

Our business Our recipe for success Our success is the result of our focus on: Because of this focus, SABIC s brand is a guarantee of quality to its customers and shareholders alike. Our organization SABIC is made up of six strategic business units (SBUs), organized by product: SABIC also has gobal corporate functions that deliver world-class services to the SBUs, standardize our processes and build best practices: In addition, a Shared Services organization provides support to every part of our business. Shared Services the nerve center of our business SABIC s global operations are now extremely complex. That s why we created a Shared Services organization. Shared Services supports all aspects of our business, and ensures the most effective communication between SABIC and its affiliates. By helping all our businesses act as one cohesive unit, the Shared Services organization improves efficiency, reduces costs and delivers better service to our customers.

SABIC worldwide We have a global network of sales offices, storage and distribution facilities, and a growing number of manufacturing sites all over the world.

Our business With an illustrious trading history, Saudi Arabia is a great base for our worldwide operations. Saudi Arabia has easy access to the world s most important markets Europe and the Americas and areas of rapid growth global ambitions. SABIC now has around 33,000 employees, serving customers in more than 100 countries. Our four regional operations help to co-ordinate these global activities. SABIC in the Middle East and Africa With our headquarters in Riyadh and many of our major facilities located in Saudi Arabia, our home region is the Middle East and Africa. Africa is a growing market for our products, and we have a network of offices and companies elsewhere throughout the Middle East and Africa, in strategic locations such as the United Arab Emirates, Egypt, Lebanon and Turkey. SABIC in Asia SABIC operates an extensive sales and marketing network Taiwan. The region is SABIC s largest sales market, and has gained even more strategic importance in recent years as the world s largest growth market. SABIC in the Americas SABIC s operations in both North and South America are the hub of sales and marketing and business development advanced Technology and Innovation Research Centers. SABIC s American presence was greatly expanded when the company acquired a major manufacturer and supplier of highly engineered thermoplastics in 2007. SABIC in Europe SABIC began operations in Europe when we acquired DSM The Netherlands. It enabled us to take a big step towards achieving our ambition of being a global producer as well as a global supplier of high-quality petrochemical products. SABIC has state-of-the art manufacturing operations at Gelsenkirchen in Germany, at Geleen in the Netherlands also house a cutting-edge technology center. Rapid expansion Since our foundation in 1976, overseas expansion has been central to our growth strategy. We re one of the world s fastest-growing companies, but our growth has always been well-planned. The careful management of our emergence on to the world scene has been described as one of the most rapid and coherent industrial developments of the 20th century. We have a global network of sales offices, storage and distribution facilities, and a growing number of manufacturing sites the world over. All this is backed up by a logistical operation that ensures our customers get the products they want, when they need them, regardless of the size or complexity of the order. Thanks to economies of scale, and our insistence on the newest and most efficient manufacturing techniques, SABIC s quality products are competitively priced, making them sought after by companies everywhere.

World-leading facilities We ve invested tens of billions of dollars in our high-tech industrial sites, and continue to invest heavily, to keep them at the cutting edge of production technology.

Our business Manufacturing in Saudi Arabia SABIC s manufacturing facilities are concentrated in two high-tech industrial cities in Saudi Arabia. Al-Jubail was our first center of production; we transformed it from a quiet fishing village into a world-leading industrial site. Yanbu, on the Red Sea coast, is our newest site, and the focus of many of our expansion efforts. We ve invested tens of billions of dollars in these two sites, and continue to invest heavily, to keep them at the cutting edge of production technology. Manufacturing in Europe SABIC Europe, headquartered in Sittard, The Netherlands, operates state-of-the-art manufacturing complexes at Gelsenkirchen in Germany, Geleen in the Netherlands, European customers better. complexes in the Americas, Europe and Asia. All our 18 affiliate companies have their manufacturing operations at Al-Jubail and Yanbu. These include the Saudi Methanol Company (AL-RAZI), the largest single-site chemical-grade methanol producer in the one of the largest steel producers in the Middle East. petrochemical manufacturing plants in the world. It is thanks to them that we produce such a wide range of high-quality products.

An average consumer in a supermarket anywhere in the world would be amazed at how many of the goods lining the shelves are made with SABIC s petrochemical products. Everyday essentials such as clothing, kitchenware and detergents are made using our products. Luxury items that we take for granted, like computers and perfume, are also dependent on our petrochemicals. SABIC fertilizers help to stock the aisles with nutritious food, and many other items, from shampoos to fresh meat, are packed in hygienic plastic containers made with our polymers. Outside the supermarket, SABIC s tough plastics are used to make everything from aerospace components and vehicle parts to clean water pipes and medical equipment. Our metals make washing machines and fridges, and are used in construction projects all over the world, giving people jobs and shelter. Our products help cars to run more cleanly, to cool people down when they re too hot and to keep things from freezing in the cold and ice. It s easy to see how the modern industrialized world runs on SABIC s products. We divide our output into six business units. Each one oversees a different kind of product, making sure that SABIC s standards of quality, safety and efficiency are followed in everything we do. SABIC products: vital to life today An average consumer in a supermarket anywhere in the world would be amazed at how many of the goods lining the shelves are made with SABIC s products.

Our products

Chemicals: the building blocks of modern life Chemicals constitute the most basic building blocks of a wide range of other chemicals, plastics and advanced materials, ultimately enabling the manufacture of a vast range of industrial and consumer goods. The products of the Chemicals unit are produced from hydrocarbon feedstocks including methane, ethane, propane, butane, and light naphtha. As SABIC s largest single strategic business unit (SBU), Chemicals accounts for more than 60 percent of SABIC production, as well as manufacturing most of the raw The Chemicals SBU s products divide into four groups: Olefins and Gases; Aromatics and Chlor-Alkali; Oxygenates; and Glycols. Olefins and aromatics are used to produce polyester and polyolefins employed to make plastics, fabrics, and packaging materials. Oxygenates serve as solvents and to improve fuel, while glycols are used in products from polyester, and paint to antifreeze. Chlor-Alkali includes chemicals for other manufacturing processes, such as ethylene dichloride (for including paper and textile production. Polymers: materials for life world. They are used to make everything from food packaging and bottles, to car parts, building materials, water pipes, diapers and clothing. properties some, for example, are heat-resistant, some melt easily, others are rigid, while still others can be made into fibers. This is why plastics, which are made from polymers, are so useful. They are an economic way of producing vital goods that would be impossible to make standard of living for people across the world. SABIC produces an unrivalled range of plastics and fibers, including five of the most popular plastic materials, specifically polyethylene, polypropylene (known as We also produce polyester, the world s most popular synthetic fiber. as their raw materials chemicals made by other SABIC units. Through constant investment in research, we re finding new uses for plastics for our customers worldwide, and are also helping to make them environmentally safer. SABIC s polymers are mainly produced by our affiliates SABIC Europe also makes polyethylenes and polypropylenes, supplying its products to customers worldwide. Expansion plans mean our capacity to produce polymers will rise significantly in the coming years.

Our products 1 Chemicals are used to make the household products we all need. a plastic made from SABIC s basic chemicals, is ideal for use in water bottles. 3 Intermediates are essential to producing everything from toys to medical supplies to anti-freeze. 1 2 3

Innovative Plastics: leading innovation more than 9,000 employees and operations in over 35 countries. It continues to lead the plastics industry through close collaboration with customers, substantial investment in new polymer technologies, application development on a global scale, innovative process technologies, and environmentally responsible solutions in almost every area of modern life, from automotive, aviation and electronics to construction, alternative energy, and health care. The extensive product portfolio includes thermoplastic resins, specialty compounds, film and sheet products, and coatings. in the engineering plastics industry. We are focused on materials, design and process innovations that help our customers succeed. Our focus on growth through innovation will be the key to our future success. Performance Chemicals: focusing on adding value SABIC product portfolio toward value-adding functional chemicals and polymers. Over the coming years, performance products and serve new customers in growing industries ranging from personal care, construction, automotive and alternative energy to aviation. for close to 10 percent of SABIC revenues. In sectors such as the automotive industry, the personal care industry and agriculture, there is a need for highquality, innovative petrochemical derivatives tailored to Chemicals business unit will produce and market technologically advanced products, including ethanolamines, surfactants and other specialty products. approach, reflecting the product offering and target customer segments of each business unit.

Our products hygienic way to store food. favorite synthetic fiber. It is manufactured from SABIC s polyester chips. plastics durable, attractive materials that can be used to make everything from chairs to car and aircraft parts. 1 2 3

Fertilizers: helping to feed people The world s most useful artificial fertilizers ammonia, urea and phosphates can be made from natural petroleum gas and minerals, and SABIC fertilizers are improve crop yields and provide nutritious food for our tables; with an increasing population and demands on the available land growing, SABIC is helping to face the challenges of a changing world. phosphate and liquid fertilizers at our three Company (IBN AL-BAYTAR). We are one of the largest producers of fertilizers in the world. SABIC supplies all of Saudi Arabia s urea and meets almost all of its phosphate and ammonia requirements. Australasia and the United States, and are the world s biggest exporter of granular urea. Metals: constructing the modern world SABIC began manufacturing steel in 1983. Since then, our metal products have played a major role in the industrialization of the Middle East and have been used in some of the most significant and exciting construction projects of recent times, including the Burj Al-Arab hotel owned SABIC subsidiary. It manufactures both long and flat steel products and is the leading steel producer in the Gulf region. Long steel is used in girders and wire rods forms panels, ideal for making oil drums, car parts and household appliances. Our Metals SBU also looks after SABIC s other metals operations. These are the joint-venture companies Aluminum Bahrain (ALBA), the Gulf Aluminum Rolling at Al-Jubail, which makes silico- and ferro-manganese for aluminum and steel production. Our Metals business unit is growing in prestige thanks to its technologically advanced products and customer focus.

Our products 1 SABIC steel has helped to industrialize some of the world s fastest-growing economies. 2 Our fertilizers help farmers increase yields and produce more nourishing food. 1 2

Looking to the future SABIC s heritage and the careful management of its resources have made us a successful, world-leading petrochemicals company. But we always want to get bigger and better we have a production target of 130 million metric tons a year by 2020. This ambition involves building on the past and focusing on the future. it spreads into new territories and markets across the globe, to ensure we are operating at our peak efficiency at all times. It also means developing new products and services, finding the best people and investing in research and technology. customers around the world exporting to them and also manufacturing at different sites across the globe. To do this, we work in partnership with industry leaders to develop our capabilities and our expertise. We also continue to look for opportunities to expand in Asia, Europe, the Americas and in the Middle East and Africa. This is SABIC s global growth strategy. We re ambitious and competitive, and know that we have the resources and the business structures to make these ambitions a reality. SABIC technology and innovation Thanks to our research efforts, we ve developed new technologies, processes and catalysts that make our affiliates some of the world s most advanced and efficient chemical plants. We know, however, that we have to continue investing in our plants, in our people, in our customer care to achieve our vision of becoming a worldleading company. We put such a high price on technology and innovation because we know that it can drive the petrochemical industry forward and create the markets and products that will guarantee our future success. Our sheer technical strength is demonstrated by our investments in Technology and Innovation facilities throughout the world, including advanced Technical Centers in Saudi Arabia (Riyadh and Jubail), the Netherlands (Geleen), India (Bangalore), and the United application centers spread across the globe. We established our overseas centers so that we don t miss out on the world s intellectual capital. Our technology centers are also there to give on-hand support to our customers, wherever they may be. Technology and innovation focus We ve developed new technologies, processes and catalysts that make our affiliates some of the world s most advanced and efficient chemical plants.

Supporting

Sharing our futures Long-term partnership is one of our core strategies for growth, and our success in joint ventures has been cited as a model for developing countries.

Supporting Working with others to share success Our company is one of integrity and is built on the principle of shared success. We believe that the best way to progress is by sharing the benefits with everyone who works with us. This means looking after the interests of important groups, such as our employees, our customers and the other companies we work with. SABIC: a people business SABIC would not be where it is today without the hard work and vision of our people. We owe our success to each and every SABIC employee. Not only do our employees ensure the smooth running of our day-to-day operations, they re our future too. They realize the ideas and carry out the research that keep us at the forefront of a complex and fast-moving industry. In fact our business is as much about people as it is about products the two are intrinsically linked. offices, we employ the brightest, most experienced people in the industry. And, having attracted the best staff, we empower them to make the decisions that ensure SABIC is the best it can be. We are building one of the petrochemical industry s most comprehensive programs for training our employees, creating a business culture which encourages creativity, innovation and personal development. It all helps to make SABIC a company people are proud to work with. Dedication to our customers We know that our most important job is to meet our customers expectations, now and in the future. This is why we build long-term partnerships with those we serve, so that we can better understand their needs. We back this up with excellent technical service and support, and a dedication to delivering quality products on time, whatever the complexity or volume of the requirement. We have an intelligent and flexible approach, and we make sure we can adjust order volumes and supply routes at short notice. This is what our customers have come to expect from SABIC the consistently high standards of a global leader. By doing all these things, we help other companies to succeed, creating jobs and prosperity and improving the quality of life for millions around the world. Joint ventures with industry SABIC seeks partnerships with industry leaders to help us expand our operations. It s one of our core strategies for growth, and our success in joint ventures has been cited as a model for developing countries. Sometimes we seek new partners or assets that give us access to new markets. A joint venture with an established company might, for example, give us the benefit of their reputation with their customers, and help us penetrate markets that might otherwise be difficult to break into. Other partnerships are made to bring in new technological expertise. We recognize that licensing technology from the most advanced companies in the world is an effective way of staying up-to-date with areas that we are not researching ourselves. We don t think that a joint venture should be a one-way street, however. Our principle of shared success means that we also want our partners to benefit. All our joint venture partners who have included some of the major oil companies have been very successful in their investments with us.

The standards of a global leader Our commitment to being a global leader reaches far beyond our business goals. At SABIC, we pride ourselves on our integrity. We set ourselves the highest standards in environmental protection and in looking after our employees development, and their wellbeing in the workplace. Our corporate social responsibilities are just as important to us as financial success. We are dedicated to using our natural resources and human talent to their best advantage by innovating and educating, and employing the latest technology. This care for people and natural resources informs all our standards. Protecting our people While productivity and efficiency are important, our first priority is the safety of our people and the communities around us. Our investment in training, equipment and process-management systems has earned us an enviable safety record, and we do everything we can to create a safe, healthy and rewarding environment for our employees. We train and support them so that they have the responsibility and the power to minimize or eliminate risks at work, looking after others safety as well as their own. The standards of a global leader We are dedicated to using our natural resources and human talent to their best advantage by innovating and educating, and employing the latest technology.

Supporting Towards a greener world At SABIC, we share the world s growing concern for the environment. We do everything we can to minimize our impact on the planet, from ensuring that our manufacturing plants cause as little pollution as possible, to producing safer, greener products for the world to use. In everything we do we balance economic and ecological considerations, and we have comprehensive safety, health and environmental systems to make sure we re working to the highest standards. We also ensure our suppliers, contractors, affiliates and employees are aware of their responsibilities. We have won numerous awards for our environmental achievements, and we intend to continue to be a world leader in this field.

SABIC tomorrow In our relatively short history we ve achieved a lot, but we want the future to be even better. We will continue to expand, continue to search for new opportunities abroad, continue to innovate and push the petrochemicals industry forward in a dynamic yet socially and environmentally responsible way. We will always aim for the highest standards in all areas. We know that with our focus on people development, quality, safety and customer service, we re ready to ensure a prosperous future for our employees, customers and shareholders alike. Need to find out more? Online In print Contact us www.sabic.com Specific SBU brochures are available on request. > > > office. Addresses are listed overleaf, or alternatively at www.sabic.com/corporate/en/ newsandmediarelations/contact