• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Fixr.com Announces 2021 Paint & Color Trends

    2021 CEO Forum

    Automotive OEM Coatings

    Mixing Equipment Directory

    The Wood Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Barentz Expands Canadian CASE Team

    Shepherd Color Company Opens Sales Office in China

    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA

    RPM Reports Fiscal 2021 3Q Results

    TCSNE (NESCT) Hosting Golf Outing on Sept. 13, 2021
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Adds SEM Products to PPG ADJUSTRITE Commercial Estimating System

    HGTV Home by Sherwin-Williams Launches Ovation Plus

    Nippon Paint Marine’s New Self-polishing Antifouling Paint Applied to 5 Bulk Carriers

    PPG Honors Ideal Distributors with Automotive Refinish Platinum Distributor of the Year Award

    Dunn-Edwards Launches DECOPRIME
    Additives
    Binders
    Pigments
    Solvents

    Shepherd Color Company Opens Sales Office in China

    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA

    Clariant Joins EU Circular Plastics Alliance

    AOC Provides Resins for Structure, Shell of Solar Car

    HSMG Receives Notice of Allowance from US Patent and Trademark Office
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Shepherd Color Company, The

    Siltech Corporation

    Eagle Specialty Products

    Keim Additec Surface USA LLC

    Active Minerals
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    11th Asia Pacific Floor Fair and Guangzhou Paint & Coatings Fair

    Coatings for Africa
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Shepherd Color Company, The

    Keim Additec Surface USA LLC

    Clariant Additives

    Siltech Corporation

    Eagle Specialty Products
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    IHS: Diversification, Innovation and Strategic Partnerships Key for SABIC to Maintain Growth

    ...

    Related CONTENT
    • Brazil’s Petrobras Sells Total Rights for $2.2 Billion
    • Sanctions Relief Strengthens Outlook for Iranian Petrochemical Producer NPC Iran
    • IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil
    • Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers
    • Growing Latin American Demand for Polyethylene Far Outstrips its Production and Planned Additions
    Melissa Manning, IHS12.29.15
    Facing slowing economic growth and persistent low oil prices, the Saudi Basic Industries Corporation (SABIC), the world’s fourth-largest chemical company by revenue ($50.2 billion in 2014), is transforming itself from primarily a commodity player to a global leader in chemicals through market-facing global growth, differentiated solutions, innovation and strategic partnerships, according to new analysis from IHS, a global source of critical information and insight.

    According to the IHS Chemical report entitled Chemical Company Analysis (CCA): Saudi Basic Industries Company, for many years, SABIC enjoyed dynamic growth by leveraging its feedstock advantages to fuel high profits and expansions. However, slowing economic growth and falling oil prices have affected SABIC’s financial performance in recent quarters. Business performance fell short of expectations in 2014, owing to the price decrease seen in petrochemicals in tandem with oil prices. In 2014, SABIC’s revenue fell by 0.5 percent from 2013 revenue, due to lower petrochemical prices. Almost 57 percent of SABIC’s revenue in 2014 came from its chemicals segment, making the company increasingly susceptible to a fall in oil prices.

    “SABIC realizes that its feedstock advantage is gradually diminishing,” said Mohit Sood, principal analyst at IHS Chemical and lead author of the IHS Chemical report, “so it is focusing on geographic diversification to capture new markets and grow its top-line revenues. As a result, global projects are consuming an increased share of SABIC’s capital expenditure.”

    The IHS report said Riyadh-based SABIC enjoys a strong position along the ethylene value chain since a majority of the company’s crackers are ethane based, and the company is the world’s largest ethylene producer. SABIC also ranks among top five global producers of ethylene derivatives including high-density polyethylene (HDPE), low-density polyethylene (LDPE), and linear, low-density polyethylene (LLDPE). Globally, the IHS report said, SABIC is the largest player in the ethylene oxide (EO)/ethylene glycol (EG) chain, which is mainly exported to the high demand China market.

    As part of achieving the company’s goals for 2025, Sood said, SABIC leadership aims to make the company more customer-focused and also plans to move the company toward sustainability through focused innovation platforms. These platforms include oil-to-chemicals, increased use of CO2 and hydrogen, alternative energy, light-weighting, functional fluids, and key process technology transfer.

    “To meet its objectives, the company has undergone some restructuring, and in February of 2015, SABIC appointed Yousef Abdullah Al Benyan as the new CEO of the company. Mr. Al Benyan has since made several organizational changes,” Sood noted. “This follows the appointment by the new Saudi King Salman, who named Mohamed Al Mady to the post of president of the country's Military Industries Corp.”

    SABIC announced a reorganization of its innovative plastics strategic business unit (SBU) to create a more focused specialties SBU. Effective 1 January 2016, the commodity products of SABIC’s innovative plastics SBU will be transferred to the chemicals and polymers SBUs. Innovative plastics’ remaining activities will fall under the newly created specialty SBU. Together with SABIC’s performance chemicals SBU --the portfolio of which was reallocated in April 2015 -- the innovative plastics SBU will cease to exist.

    “Moving forward,” Sood said, “SABIC has some clear advantages and opportunities, but also some potential challenges. The company is blessed with abundant and advantaged feedstocks, it has the highest profitability among its competitors (EBITDA margin was 28 percent in 2014), and its scale and geographic diversification are tremendous strengths that set it apart. However, with scale, you often have significant expenses, and SABIC has high managerial expenses, which indicates an opportunity for the company to improve its operational efficiency. In addition, the company is limited in its feedstock flexibility due to a heavy reliance on gas-based feedstock, and further oil price declines will lessen the company’s competitive advantage as Asian and European competitors increase their market share.”

    However, Sood said “the company has a strong cash position and its feedstock reliability makes SABIC a preferred joint venture (JV) partner. In addition, SABIC’s focus on technology will enable it to diversify its product offerings, and the company’s focus on market needs to drive future sustainability will be key differentiators for the company, particularly in the Middle East region, where the company faces increasing competition.”

    A recent company statement issued said SABIC has focused on sustainability in its 2025 vision with a target of 60 percent top-line growth, and ”the strategy outlined keeps in mind the megatrends that impact the petrochemicals industry, and SABIC in particular, giving the company a strong foothold in these choppy times.”
    Related Searches
    • china
    • chemical
    • innovation
    • polymers
    Suggested For You
    Brazil’s Petrobras Sells Total Rights for $2.2 Billion Brazil’s Petrobras Sells Total Rights for $2.2 Billion
    Sanctions Relief Strengthens Outlook for Iranian Petrochemical Producer NPC Iran Sanctions Relief Strengthens Outlook for Iranian Petrochemical Producer NPC Iran
    IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil IHS: New ExxonMobil and Saudi Aramco Technologies Produce Ethylene Directly from Crude Oil
    Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers Growing Infant & Aging Populations Drive Demand for Super Absorbent Polymers
    Growing Latin American Demand for Polyethylene Far Outstrips its Production and Planned Additions Growing Latin American Demand for Polyethylene Far Outstrips its Production and Planned Additions
    Uncertainty Now Could Tighten Chemical Markets Later Uncertainty Now Could Tighten Chemical Markets Later
    Oil Collapse, China Heighten Long-term Structural Change in Chemical Industry Oil Collapse, China Heighten Long-term Structural Change in Chemical Industry
    Radiation-Curing Technologies Radiation-Curing Technologies
    IHS: Despite FDA Phase-out of Partially Hydrogenated Oils, Global Outlook Remains Positive IHS: Despite FDA Phase-out of Partially Hydrogenated Oils, Global Outlook Remains Positive
    IHS: Decline in Oil Price Leads to Near-Term Market Weakness, Ultimately Drives Higher Demand IHS: Decline in Oil Price Leads to Near-Term Market Weakness, Ultimately Drives Higher Demand
    Carbon Pricing Needed for Bioplastic Innovation Carbon Pricing Needed for Bioplastic Innovation
    Celanese Completes Sale of its Atmospheric Vinyl and Acrylics Emulsions Unit Celanese Completes Sale of its Atmospheric Vinyl and Acrylics Emulsions Unit
    IHS: Olin Rises to Top Producer in Chlor-Alkali Industry Following Merger w/Dow Chlorine Products IHS: Olin Rises to Top Producer in Chlor-Alkali Industry Following Merger w/Dow Chlorine Products
    IHS: U.S Shale Production Enables Greater Opportunities for Marcus Hook Industrial Site as Key Link IHS: U.S Shale Production Enables Greater Opportunities for Marcus Hook Industrial Site as Key Link
    Biomaterials Market in Europe Poised for Growth Biomaterials Market in Europe Poised for Growth

    Related Expert's Opinion

    • Chemical Industry’s Response to Crisis While in Crisis

      Chemical Industry’s Response to Crisis While in Crisis

      ...
      Dean Curtis, President and CEO of ICIS 05.22.20

    • Automotive Coatings
      A Brief Introduction to Importance of Automotive Paint Additives

      A Brief Introduction to Importance of Automotive Paint Additives

      ...
      Swamini Kulkarni 05.18.20

    • Breaking News | Marine Coatings | Paint & Coatings Manufacturer News
      Jotun: It’s Time for a

      Jotun: It’s Time for a 'Revhullution'

      Jotun Hull Skating Solutions.
      Jotun 05.11.20


    • Additives
      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Report shows innovations in CO2 electrolysis will lead to displacement of natural gas for pure carbon monoxide and formic acid production by 2050.
      Lux Research 04.07.20

    • Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Fermentation holds the key to cost savings, greater innovation, and creation of novel products.
      Lux Research 04.02.20

    • AkzoNobel: How Our Products Contribute to Critical Industries

      AkzoNobel: How Our Products Contribute to Critical Industries

      ...
      AkzoNobel 03.30.20


    • In the Future of Plastic Recycling, No Singular Technology Will Dominate

      In the Future of Plastic Recycling, No Singular Technology Will Dominate

      ...
      Lux Research 01.30.20

    • Breaking News
      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers.
      01.15.20

    • Market Reports  | Pigments

      Evolving Automotive Sector Fueling Global Pigments Market Trends

      APAC to also emerge as a strong growth avenue, Pankaj Singh writes.
      Pankaj Singh 12.06.19


    • Breaking News
      PPG

      PPG's TAUBMANS, WHITE Knight Paints Reveal Top 7 Mini-makeovers Achievable with Tax Refund

      Company’s paint experts team with Cherie Barber to inspire DIY transformations.
      08.12.19

    • Commercial Construction Index Shows Surge in New Business Confidence

      ...
      06.20.19

    • Breaking News
      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      ...
      09.02.18


    • Breaking News | Market Reports
      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Research by IHS Markit.
      08.28.18

    • Breaking News
      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      ...
      08.26.18

    • Breaking News
      Lithium Landscape - Analyst Provides a

      Lithium Landscape - Analyst Provides a 'Who's Who' in Sector, Looks at 30+ Industry Players

      ...
      08.19.18

    Trending
    • Raw Material Availability, Prices Hikes May Be 2021’s Biggest Issue For Coatings, Ink Sectors
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • HGTV Home By Sherwin-Williams Launches Ovation Plus
    • Eastern Coatings Show 2021 Organizers Call For Papers
    • PPG Adds SEM Products To PPG ADJUSTRITE Commercial Estimating System
    Breaking News
    • Barentz Expands Canadian CASE Team
    • Shepherd Color Company Opens Sales Office in China
    • Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA
    • RPM Reports Fiscal 2021 3Q Results
    • TCSNE (NESCT) Hosting Golf Outing on Sept. 13, 2021
    View Breaking News >
    CURRENT ISSUE

    April 2021

      View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Kyowa Hakko Launches Heat-Treated Probiotic Strain for Eye Health
    CGA-7 Green Coffee Extract by Vidya Herbs Achieves Self-Affirmed GRAS Status
    Nutritional Complex Evidenced to Reduce Preterm Birth
    Coatings World

    Latest Breaking News From Coatings World

    Barentz Expands Canadian CASE Team
    Shepherd Color Company Opens Sales Office in China
    Chromaflo Technologies Awarded Gold Status CSR Rating by EcoVadis in EMEA
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    CMS Establishes New Payment for Pelvalon’s Eclipse System
    Varian, Google Cloud Partner to Bring Convenience to Cancer Therapy
    Resonetics Leases New Manufacturing Space in Costa Rica
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Frontage Expands Capabilities at its Clinical Site in Secaucus, NJ
    Ascendia Pharmaceuticals Poised for Expansion
    Bora Pharmaceuticals Adds Roller Compaction Capabilities
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Revlon Unveils New Fragrances Featuring Megan Thee Stallion & Sofia Carson
    Henkel Management Board Welcomes Wolfgang König
    Mielle Organics Gets a Major Investment
    Happi

    Latest Breaking News From Happi

    Nature’s Beauty Debuts Vegan Natural Body Care at Walgreens
    Estée Lauder Expands 'Beautiful' Fagrance Collection
    Mushrooms Are Key Ingredients in Beauty & Wellness
    Ink World

    Latest Breaking News From Ink World

    SE-DA Invests in Kornit Presto S
    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    Iron Oxide Pigments Market to Register 4.7% CAGR from 2021 to 2028: GVR
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Dantex elevates Joseph Sanchez to digital business development manager
    Mactac's Kevin Clunie joins TLMI panel
    MacDermid announces two new global sales roles
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Precision Textiles Offers Biodegradable Medical Fabric
    Northshore Launches Megamax Briefs in New Colors
    Essity Acquires Distribution Rights to Sorbact in Australia and New Zealand
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    New Biosealant Could Stabilize Cartilage, Boost Healing After Injury
    Google Executive Joins SeaSpine's Board of Directors
    HSS and LimaCorporate Open Provider-Based 3D Design and Printing Facility
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Tive Multi-sensor Tracker Solo 5G Relies on Sensirion SHT33
    VTT in 2020: Successful Year Despite Globally Challenging Times
    Lux Research: 3D Printing Market to Reach $51 Billion in 2030

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login