Saudi Arabia based Sabic recently confirms that the establishment of its specialties strategic business unit (SBU), as a separate, stand-alone business, which will remain owned by Sabic, is on track. While Sabic continues to monitor the business impacts of Covid-19, at this time, it anticipates that the timing of the “go-live” for the stand-alone operations of the group of companies embedding its specialties strategic business unit (SBU) will be 1 November 2020.
According to Sabic, establishing the stand-alone model for the specialties SBU will bring additional value to its customers who depend on the specialties business for its innovation expertise and highly differentiated ULTEM and NORYL resins, LNP compounds, and copolymers.
Establishing the corporate, financial, commercial, and business structure of the stand-alone organization has progressed successfully. The specialties business has been working closely with its customers, distributors, and suppliers with the commitment to ensure business continuity for all parties during the transition, it said.
Ernesto Occhiello, executive vice president specialties, said, “We are pleased the establishment of the specialties business unit, as a stand-alone corporate group of companies within Sabic, is progressing as planned. The task we have as a business is to continue to strengthen our market position and bring added value to our customers. We will continue to work closely with them to address their most – and often one-of-a-kind – challenges by offering a unique portfolio of high-end products, technologies and solutions.”
Moreover, in advance of the go-live, the specialties business has undertaken a global reorganization to align required staffing with the transformed business’s strategic focus. This endeavor has effectively brought no impact to customers while successfully retaining its talent within Sabic and limiting redundancies.
Sabic’s specialties business has deployed new fulfillment strategies to ensure the best support of its broad customer base. The business focuses its resources and efforts on the specification and works closely with its customers and distribution partners. The anticipated capacity expansions for the NORYL and ULTEM products are progressing while the company adheres to strict safety precautions for its employees in light of the global pandemic. The expansions are expected to be operational in 2021 in the Netherlands and 2022 in Singapore, benefiting a growing customer demand with strategically positioned supply and shorter lead times.
The decision to establish the specialties business as a stand-alone group of companies precedes the acquisition of a 70% stake in Sabic from the Public Investment Fund (PIF) by Saudi Aramco, and it is unrelated to it. Sabic remains a listed company on the Saudi Stock Exchange, with its board of directors representing all shareholders’ interests and continuing to exercise its robust governance practices.
Sabic manufactures on a global scale in the Americas, Europe, Middle East, and the Asia Pacific, making chemicals, commodities, and high-performance plastics, agri-nutrients, and metals. Sabic supports its customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation, and clean energy.