SPECIALTIES

Our business value is derived from technology and intellectual property, together with customer relationships. We are a truly global business with strong and intimate relationships with Original Equipment Manufacturers (OEMs). Our advantages ranging from established global R&D footprint and product/application testing to pilot scale capabilities have facilitated multiple innovations leading to a strong intellectual property portfolio.

In 2022, SABIC’s Specialties business also supported efforts towards carbon neutrality and the circular economy through leveraging bio-renewable as well as chemical upcycling technologies to deliver high-performance materials with lower carbon footprints; striving to decrease the carbon footprint of our assets by increasing energy/resource efficiency and building meaningful collaborations with partners in relevant value chains.

GLOBAL MARKETS

The external operating environment has experienced significant changes during 2022, which impacted the entirety of the chemical industry. Geopolitical tensions have continued to affect the business environment, while supply chain issues have continued to affect manufacturing. SABIC’s Specialties business has navigated these external factors to continue its growth trajectory.

NON-FINANCIAL METRICS

OPERATING HIGHLIGHTS

As Specialties grows, it will strive to continually provide stable value creation with products downstream from oil production to help address Saudi Vision 2030.

Increased customer intimacy and cross-functional engagement in each region are critical to our growth. We strive to focus on customers’ needs and local fulfilment with startup of ULTEM™ resin capacity in Singapore and the restart of the NORYL™ resin plant in the Netherlands planned for 2023. SABIC purchased Clariant's 50% stake in specialties company Scientific Design in 2022. Scientific Design is a recognized leader in catalysis and this acquisition will strengthen our non-cyclical technology-oriented business and move us closer to our long-term goal of becoming a global Specialties leader. These developments are important milestones in SABIC's journey to become the National Champion for Specialties in the KSA and aligns firmly with the National Industrialization Strategy (NIS) and Vision 2030.

INNOVATION BREAKTHROUGHS

Improving EV batteries: To help meet the EV manufacturers’ stringent demands of higher voltage batteries, SABIC introduced NORYL NHP8000VT3 resin. This resin achieves the highest comparative tracking index performance (CTI PLC0) and provides ultra-thin-wall extrusion and thermoforming capability, meeting UL94 V0 standard at 0.25 mm with non-brominated, nonchlorinated flame retardance.

Advancing net-zero carbon goals for consumer electronics (CE) industry: SABIC introduced LNP™ ELCRIN™ EXL7414B copolymer, an ISCC+ certified 50% bio-based content polycarbonate copolymer to help advance CE industry’s net-zero carbon emissions goals.

Using ocean-bound PET bottles as a feed stream for upcycling PBT: LNP™ ELCRIN™ WF0061BiQ resin is a novel material that uses ocean-bound polyethylene terephthalate (PET) bottles as a feed stream for chemical upcycling into polybutylene terephthalate (PBT) resin. This grade adds to SABIC’s extensive chemically upcycled portfolio, which supports circularity while serving as potential drop-in replacements for virgin PBT resins.

Optimizing performance of optical components: EXTEM™ RH1016UCL resin is a new ultra-high heat near-infrared (IR)-transparent grade. Together with optical design freedom and breakthrough high-temperature performance, this resin can help customers transition from pluggable optics to co-packaged optics that support increased data speed, scale and energy efficiency.

Other value creation

We established digital channels to increase customer intimacy, such as storefront at Knowde platform; showcase pages on LinkedIn channel; and webinars on leading digital platforms.

AWARD-WORTHY CHEMISTRIES

Renowned international award programs recognized multiple novel products.

2022 Edison Awards

The Specialties business won three awards during the 2022 Edison Awards Cycle for our contributions, such as enabling ADAS designers to improve signal strength at higher frequency (>75GHz) millimeter wave radars (LNP™ THERMOCOMP™ compounds); enhancing FR performance and adding bio content to meet rigorous IEC 62368-1 safety standards for consumer electronics (LNP™ ELCRES™ EXL7414B resin); increasing sustainable content with development of bio-based, carbon fiber-reinforced FR compound in housings for the CE industry (LNP™ THERMOCOMP™ DC0041PE compound).

R&D 100 Awards

R&D World magazine awarded Specialties for its contribution in areas including enabling the world’s first Laser Direct Structuring antenna design for 5G infrastructure (LNP™ THERMOCOMP™ OFC08V compound); contributing to net-zero carbon goals through chemical upcycling of PET Bottles (LNP™ ELCRIN™ iQ resins); and helping ADAS designers improve signal transmission accuracy and reliability (LNP™ solutions).

Spotlight on sustainability

We emphasize sustainability because we understand the value created for the communities. Thus, we chose the following as our focus areas for 2022.

Net zero strategy: We are committed to being a trusted global partner to jointly tackle net zero challenges while delivering profitable business growth and supporting customers' decarbonization and circular economy goals. Three distinct pillars related to Carbon Neutral Assets, Value Creation through Circular Products, and Environmentally-Focused Solutions help us to meet our commitment.

The circular economy: SABIC is leveraging bio-renewable and chemical upcycling technologies to deliver high-performance materials with lower carbon footprint, which optimize the use of resources and reduce waste.

Portfolio sustainability assessment: The portfolio Sustainability Assessment Methodology developed by World Business Council for Sustainable Development (WBCSD) and leading chemical companies including SABIC provides specific guidance for the chemical industry to assess sustainability signals across their entire product portfolio, and then steer their portfolio towards improved sustainability outcomes.

Sustainability-related manufacturing efficiency improvements: Specialties global manufacturing sites continued to invest in efficiency projects that positively impacted electricity usage and water consumption.

Certifications: Selkirk and Cobourg were certified by ISCC+ for production of grades with bio-based content, bringing the total number of certified Specialties sites to seven.

OUTLOOK

We are committed to provide solutions to our customers' challenging problems whenever possible. Our long-term goal is to become a global Specialties leader and the National Champion for Specialties in the KSA supporting the NIS and Vision 2030. Our path toward carbon neutrality by 2050 will heavily emphasize a continuing increase of bio-based and recycled feed-stock in our products as well as new chemistries that enable carbon neutral applications. SABIC’s Specialties business also aspires to become a top-five leading player in the “Multi-Segment Premium” specialty chemicals segment – a ranking that aligns with SABIC’s position in the petrochemicals industry.