Growing Together

IN ASIA FOR ASIA: PARTNERSHIPS FOR MUTUAL GROWTH

Since entering the Asia region in the 1980s, SABIC has been bringing innovative solutions and advanced production technologies as an investor, operator, innovator, supplier, and growth partner. Our 3,000 employees based at sites across China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Thailand, Vietnam, and into Oceania―Australia―have been integral to the company’s impact.

Among the most strategically significant accomplishments are SABIC’s two joint ventures in China and one fully owned plant in Singapore. The first joint venture was signed in 2009 with SINOPEC in Tianjin (the SINOPEC SABIC Tianjin Petrochemical Co. Ltd or SSTPC), mushrooming over the years into a world-scale mega-size petrochemical complex; in early 2023, a new polycarbonate (PC) plant at this complex commenced operations, bringing supply even closer to customers. The second was signed in 2022 with Fujian Energy Petrochemical, leading to the 2024 groundbreaking ceremony on the SABIC Fujian Petrochemical Complex. The complex will consist of a mixed feed steam cracker, with an expected annual ethylene capacity up to 1.8 million tons, with a series of world-class downstream facilities. More recently, SABIC expanded its footprint in Singapore with the start-up of its Benoi plant, set to increase global production of ULTEM™ specialty resins (a thermoplastic polyetherimide material). These endeavors strengthen SABIC’s footprint in the region to meet growing customer demand volumes.

Having accompanied China, over the past four decades, throughout the implementation of its Reform and Opening-up Policy, the company is progressively expanding its footprint to capitalize on the emerging opportunities in China. In recent years, SABIC has been forging strategic partnerships with leading Chinese industry players and helping to drive the strategic synergies between Saudi Vision 2030 and China’s Belt and Road Initiative.

“We strive to empower the ambitions of our customers and partners,’’ explains Li Lei, Vice President and Regional Head in China. “By growing together, we can achieve long-term success.’’

One flagship product supplied to the region has been glycols, with SABIC having a leading market share. Glycols are used mainly for the production of polyester, in textiles―such as sportswear―and also PET for packaging. Speaking about the possibilities in the region, SABIC’s experts explain that China is the most strategic and important market in the region, and their focus is on quality products and providing first-class services. Sustainability is a hot topic with many customers, and the team is actively promoting lower carbon glycols in the region.

Elsewhere in Asia, SABIC’s business covers a diversified and vast region that includes some of the world’s largest economic blocs, a rapidly growing population, and sizeable GDP growth rates above global levels. For more than 30 years, the company has served customers across 18 markets from manufacturing sites in Thailand, Japan, India, Korea, and Singapore, to transshipment hubs located strategically in Singapore and Malaysia.

Our efforts to drive circularity in close collaboration with customers are recognized locally. In 2023, we were distinguished for our solutions using recovered and recycled ocean-bound plastics. Another 2023 highlight was the launch of the world’s first microwaveable instant rice packaging bowls made with 25% certified renewable SABIC polypropylene (PP) from our collaboration with leading South Korean food manufacturer, CJ CheilJedang. SABIC also spearheaded low-carbon ammonia commercial shipments across the region.

3,000 employees are based across the Asia region. The company has earned various accolades for its investment in its human capital. For the past decade, SABIC has been distinguished as a top employer in five of its key Asian markets – India, Japan, Singapore and South Korea – and in China for the fourteenth year running.

“The importance of Asia for SABIC has never been more prominent, as shifts in the landscape such as a greater call for sustainability, have opened up new opportunities across various markets,’’ comments SABIC’s Vice President in Rest of Asia, Janardhanan Ramanujalu. “Our continued work with our long-time customers remains at the core and we are heartened that global recognition was accorded to our partners last year, even as we note an increase in demand for low carbon and renewable products.”

With its holistic approach of providing value to the communities in which it operates, SABIC has grown from being simply a manufacturer to creating lasting relationships that help its customers grow.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2023 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}