Beruflich Dokumente
Kultur Dokumente
32
in Riyadh
transformation
Page
SABIC innovation
enables prize-winning
panel for new Mini car
Page
36
Applied brainpower
helps architects and
builders construct a
better future
Page
38 Page
42
Smarter materials
that empower those
Helping square the
working to enable
circle of limitless needs,
better, longer lives
64
limited resources
Page
AT A GLANCE
ASSETS
$86bn
Whether it’s cutting weight to save pollution or developing materials to NET INCOME
help bring water to remote communities, the ingenuity, innovation and
sheer dedication of our people are changing things for the better.
$4.9bn
PATENT PORTFOLIO FILINGS
11,534
AGRI-NUTRIENTS
SABIC’s supplies to customers KEY GEOGRAPHIES
throughout the Middle East, Asia, WITH INNOVATION HUBS
Africa and the Americas help meet
– Saudi Arabia, USA, Europe,
the world’s ever-growing need
South Asia, North Asia
for food.
5
Find out more on page 28
PETROCHEMICALS
SABIC makes the essential
chemical building blocks for
materials used in everything
from packaging to healthcare
to household goods.
SCIENTISTS COUNTRIES
1,400+ 50
PRODUCTION SALES
EMPLOYEES
34,000+ $39.9bn
71.2m tons
SPECIALTIES
SABIC produces a wide range of
specialty materials, from engineering
thermoplastic resins to additive METALS
manufacturing solutions. SABIC’s high quality metals have
been key to the construction and
Find out more on page 27 industrialization of some of the
world’s fastest growing economies.
LEVERAGING GLOBAL
STRENGTHS TO DRIVE
LOCAL SUCCESS
SABIC hosted a pioneering Human
Resources Forum in Riyadh this year,
supporting the government’s commitment
to workforce development
Maintaining SABIC’s long legacy of working with the
government to develop skills and support the creation
of local employment, the forum provided a platform for
exchanging knowledge and expertise, and a catalyst for
the transformation in human resources that is key to the
achievement of Vision 2030.
TURNING
BAD WATER
INTO GOOD
SABIC expertise is at the heart of a simple
device that turns bad water into good
water – anywhere in the world
Cerafiltec’s vision of an all-plastic water-filtration module had
been repeatedly called “impossible” – but SABIC begged to differ.
SMART FARMING
WITH SPECIALTY
AGRI-NUTRIENT
This year saw sales up 100 percent for
SABIC’s specialty agri-nutrient product,
NPK, combining nitrogen, phosphorus
and potassium
The product, developed through years of intensive research
in collaboration with Riyadh’s King Saud University,
addresses a basic but important issue for farmers not just
in Saudi Arabia but throughout the region, and even further
afield: improving the performance of a mainstay
agricultural resource – date palms.
OVERVIEW AND
STRATEGY
CHAIRMAN’S STATEMENT 12
BOARD OF DIRECTORS 20
GLOBAL OPERATIONS 22
12 SABIC
ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 13
CHAIRMAN’S STATEMENT
VICE CHAIRMAN
AND CEO’S STATEMENT
ENABLING SAUDI
VISION 2030
Saudi Vision 2030 sets transformational aspirations for the Saudi economy.
Raising small-medium enterprises’ contribution to GDP from 20 percent
to 35 percent, cutting unemployment from 11.6 percent to 7 percent, and
increasing non-oil exports’ share of GDP from 16 percent to 50 percent.
While SABIC’s contribution to the development of
the Saudi economy, both directly and indirectly, is
well-established and widely recognized, Vision 2030
calls for a whole new level of commitment.
In January 2017, in a major initiative signaling
Further SABIC contributions
its readiness for that new commitment, SABIC
to Vision 2030 this year included:
announced the establishment of its Local Content
Business Development Unit (LCBDU) – a dedicated SAUDI PIPES FOR NATIONAL
function to align SABIC’s 2025 strategy with Vision WATER COMPANY
2030, and: SABIC’s portfolio of plastic pipes was preferred to
–– Develop programs to enable local content metal, after discussions and technical evaluations
creation, leveraging SABIC’s portfolio of products, with the National Water Company (NWC), a joint
procurement spend, capabilities, relationships, stock company seeking a sustainable solution for
assets and technologies. the Kingdom’s water sewerage network.
–– Coordinate and act as an interface for all local SABIC teams worked with NWC exploring technical
content-related efforts across all SABIC specifications, with grade PE100 HDPE P6006 found
businesses/functions. to be suitable for the project, whose initial tranche in
–– Build partnerships and coordinate with Riyadh will benefit 1,000 houses. In addition to
governmental institutions, financing agencies and supporting the aims of Vision 2030, the SABIC pipes
industry stakeholders, in pursuing Vision 2030 will also cut costs and installation time, improve
aspirations. performance, save on maintenance, and bring local
–– Promote SABIC and Saudi Arabia to encourage LCBDU is led by the new LC Council, which is chaired
pipe networks up to the highest global standards.
global investors’ support for the localization by the CEO, with four Executive Vice President
agenda. members. The Council’s role is to streamline
Facing page: SABIC’s sustainable solution for water sewerage
–– Disseminate SABIC’s world-class practices and steering and decision-making. It has established NEW LOCAL PLANT OPENED networks will initially benefit 1,000 houses in Riyadh.
experience with other companies in the Kingdom. a network with the government and other private BY JAPANESE SUPPLIER
Bottom left: The Local Content Business Development Unit
firms to ensure alignment of goals and programs. November 15 saw the opening of a new plant in seeks to disseminate SABIC’s world-class practices with
In its first major initiative, the LCBDU laid the
Dammam by one of SABIC’s strategic suppliers, other companies in Saudi Arabia.
groundwork for a new program, “Nusaned,” SABIC also this year:
Ebara Corporation of Japan. Above: SABIC is ideally placed and is fully committed to
conceived with Vision 2030 in mind. The program is –– Developed 12 downstream business initiatives
helping lead the way to the realization of Vision 2030.
the first localization engine that connects all (eithg polymers, four chemicals). Ebara is one of the earliest investors to get behind
industrial development stakeholders in Saudi Arabia –– Progressed 22 opportunities, of which six were SABIC’s LCBD initiative with the aim of developing
to partners under one umbrella and creates a proper realized (Ravago Middle East, UAC, GDI, Nama our Kingdom-based supplier base, reducing our
ecosystem for success. Nusaned consists of four key Chemicals, TPI and Philips), with estimated capex reliance on imports. SABIC has been importing SABIC helped Ebara establish a manufacturing
stages, each a step on the road that takes an idea of SA 2.3 billion. Ebara pumps for its plants for several years, as no base in Saudi Arabia, sharing market analysis and
from conception to realization. –– Supported 15 new investors to drive the local manufacturer could meet the specifications. streamlining processes.
localization of goods and services with an Now, under the umbrella of the new LCBD initiative,
–– Entema welcomes ideas and opportunities, investment of SA 568 million and total expected
analyzes and evaluates them, and assesses “TRANSFORMING HR” FORUM
job creation of 1,028 (332 Saudi).
their viability. October this year saw a three-day forum, hosted by
–– Increased local procurement by introducing
–– Da’aem offers a tailored support package, SABIC at its Riyadh headquarters, under the theme
15 qualified local manufacturers.
with feed materials allocation and price, product “Transforming HR: Enabling Saudi 2030 Vision.”
–– Provided steer and input to ongoing
offtake and technical support. industrialization efforts, including the Yousef Al-Benyan, SABIC Vice Chairman and CEO,
–– Investment funds can be enabled through National Industrial Strategy and National highlighted the importance of public and private
partners and new channels for economically Logistics Strategy. sector cooperation in developing the nation’s
feasible projects graduated from the program. human resources. He stressed the company’s full
–– Muahal sees SABIC help develop workforce All of this contributed to SABIC’s success in winning
commitment, saying: “At SABIC, we have established
capabilities to empower success for new local or this year’s Ministry of Commerce and Investment
a dedicated unit for the development of local
foreign investments in Saudi Arabia. Award for Best SME Support in the Kingdom.
industrial content, not only to support domestic
industries, but also to contribute to the realization of
the objectives of Saudi Vision 2030.”
20 SABIC
ANNUAL REPORT 2017 OVERVIEW AND STRATEGY 21
BOARD OF DIRECTORS
OPERATIONS
Headquartered in Riyadh, Saudi Arabia, SABIC employs more than 34,000
EUROPE
people and operates in around 50 countries. Its extensive network of
regional offices and operational centers throughout the Americas, Europe,
Middle East/Africa and Asia support global production and sale of a wide
range of chemicals, commodity and high performance plastics,
agri-nutrients and metals.
OPERATIONAL
CENTERS
3+
AMERICAS
7+
REGIONAL
OFFICES
15+
Companies: Argentina, Brazil, Canada, Companies: Austria, Belgium, Technology and Application Manufacturing and Compounding
Mexico, United States of America. Germany, Italy, Netherlands, Spain, Facilities: Saudi Arabia. Companies: China, India, Japan,
United Kingdom. Singapore, South Korea, Thailand.
International Subsidiaries and Sales Manufacturing and Compounding
Offices: Argentina, Brazil, Canada, International Subsidiaries and Sales Companies: Bahrain, Saudi Arabia. International Subsidiaries and
Mexico, United States of America. Offices: Belgium, Czech Republic, Sales Offices: Australia, China, India,
Denmark, Finland, France, International Subsidiaries Indonesia, Japan, Nepal, Pakistan,
Distribution, Storage Facilities and Germany, Greece, Hungary, Italy, and Sales Offices: Egypt, Ethiopia, Philippines, Singapore, South Korea,
Logistical Hubs: Argentina, Brazil, The Netherlands, Poland, Russia, Kenya, Lebanon, Malaysia, Morocco, Sri Lanka, Thailand, Vietnam.
Canada, Mexico, United States Spain, Sweden,United Kingdom. Saudi Arabia, South Africa, Tunisia,
of America. Turkey, United Arab Emirates. Distribution, Storage Facilities
Distribution, Storage Facilities and Logistical Hubs: Australia,
and Logistical Hubs: Austria, Belgium, China, India, Japan, Malaysia,
Czech Republic, Estonia, France, Singapore, South Korea,
Germany, Greece, Hungary, Italy, Thailand, Vietnam.
The Netherlands, Poland, Russia,
Spain, Sweden, United Kingdom.
24 SABIC
ANNUAL REPORT 2017 25
OUR BUSINESSES
PETROCHEMICALS 26
SPECIALTIES 27
AGRI-NUTRIENTS 28
METALS 29
26 SABIC
ANNUAL REPORT 2017 OUR BUSINESSES 27
PETROCHEMICALS SPECIALTIES
SABIC won the prestigious Best Polymer Producer Recognizing our customers’ reliance on products
ABDULRAHMAN Award in the Polypropylene category at the annual DR. ERNESTO and solutions that, in many cases, are genuinely
AL-FAGEEH European Plastics Converters event. OCCHIELLO unique, we took steps this year to ensure reliable
Executive Vice President Executive Vice President supply. In order to meet growing demand, we are
Moreover, SABIC utilized previously flared
Petrochemicals Specialties building new capacity for ULTEM™ and NORYL™
hydrogen and joined the hydrogen network,
resins. With ULTEM™ resins, we are making a
generating value to the company by maximizing
strategic investment to increase capacity in Asia
the usefulness of valuable natural resources.
to supplement our current capacity in the Americas
As part of its global transformation SABIC also introduced a market-facing packaging
innovation center to support customers with
This was a year of volume and and Europe. New manufacturing capacity is
expected to go online in the first half of 2021. We are
journey, Petrochemicals continued tailored solutions. revenue growth. We are leaders also adding capacity in our NORYL™ resin product
to build customer intimacy through Global growth continued with the approval of a in nearly three-quarters of our
line in Europe by the end of 2019.
multiple fronts, including the launch of new polycarbonates project in China, in the existing
50-50 joint venture with SINOPEC SABIC Tianjin
product portfolio, creating value
We continue to push the boundaries of innovation,
developing several new products and technologies
several newly developed innovative Petrochemical Co. Ltd; the launch of a new ultra- for our customers by accelerating this year and making key investments in new
modern polypropylene extrusion line and pilot plant capabilities, reinforcing our position as a
solutions, new production capabilities, in Geleen (The Netherlands); commercialization of innovation that addresses their differentiated, high-value material-and-processing
enhanced supply chain efficiencies, new POM, PMMA and ABS products in Saudi Arabia; hardest problems while focusing solutions provider.
and awarding of an EPC contract for the third
and improved sustainability ethylene glycol plant at United, with a nameplate on reliable fulfillment. They include: an extensive portfolio of new materials
for a variety of additive manufacturing processes,
performance, while continuing to capacity of 800,000 tons/year.
including large format, enabling designers to meet
develop talent globally and vigilantly Meanwhile SABIC’s olefins plant in Wilton (UK), specific functional requirements; an additional
began cracking shale gas ethane, transported from investment in composites technology to drive the
maintaining our safety standards. the US Gulf. The cracker is now a world leader in THE YEAR full industrialization and automation of
feedstock flexibility, with ethane-processing rates This year, healthy volume and revenue growth manufacturing of forms at mass-production scales;
exceeding all expectations. were testament to the success of Specialties in and launch of a new copolymer, LEXAN™ CXT resin,
cementing its status as the home of unique product for optical lenses and sensors, key to the
A debottling project was completed at offerings within SABIC. We continued to work
THE YEAR SABIC’s Petrokemya Benzene-II, bringing
performance of internet-connected devices.
successfully, both independently and in cooperation
Petrochemicals progressed this year on a number of annual production to 60,000 metric tons/year. with global customers, to develop the materials to
plant investments and safety improvement initiatives A de-bottlenecking project at the Saudi Kayan THE FUTURE
turn today’s innovative designs into tomorrow’s
in Europe and China as well as in Saudi Arabia, driving ethylene oxide and ethylene glycol plants aims We will continue to create value for customers,
game-changing products.
value for our customers. There were also new for a 40 percent increase in nameplate capacity. concentrating in particular on three key aspects:
solutions and products, productive collaborations
with customers, and strong employee engagement, THE FUTURE THE HIGHLIGHTS –– First, customer-centricity. Focusing on our customers
even as we accelerated our journey towards supply Over the year, Specialties reinforced its market and their needs sharpens our ability to deliver the
As the world’s manufacturers continue designing
chain and sustainability excellence. position in the highly sought-after, differentiated service experience they prefer and deserve.
new products to meet the world’s needs more
thermoplastic segment, with products that include –– Second, unique solutions. We will continue to
efficiently, more economically and in more
THE HIGHLIGHTS sustainable ways, we will continue developing a portfolio of specialty compounds delivering a build our status as a premium provider of highly
Consistent with SABIC’s stringent EHSS policy, the range of specific qualities and capabilities. specialized solutions in our core markets. We will
the innovative solutions that turn those
new methyl methacrylate (MMA) plant at SABIC’s help our customers solve their hardest problems by
designs into reality. They include: NORYL™ resins – which deliver
affiliate, SAMAC, recorded 20 million safe man hours bringing our knowledge of specialty thermoplastics
SABIC will continue to work ever more closely with outstanding capabilities for automotive, electronics, to bear on their most pressing needs.
with zero lost work day injuries when it was
our customers, to help them serve theirs ever energy, and water management applications; –– Third, fulfillment. As a business that operates
completed in March. Besides, SABIC’s Ibn Sina
better; to invest in new plants and people skills; to NORYL™ oligomers – a key enabler of next-generation in the spirit of continuous improvement, we focus
affilliate began the commercial production of a new
constantly ensure that safety is integral to all over high-performance electronics, including high-speed, on being a reliable partner to our customers.
plant producing PolyOxyMethylene (POM), first
operations; and to develop solutions that make the digital-printed circuit boards; ULTEM™ and EXTEM™
in-kind in Middle East and Africa, recording more As a major industry player in the segments we serve,
world better. We will maintain our mission to be the resins – two unique products delivering unrivaled
than 12 million safe man hours without loss time crucial to our customers’ success through the
preferred world leader in chemicals, by delivering heat resistance for applications where extreme
injury and zero environmental issues. unique solutions we provide, we are committed to
‘Chemistry That Matters™.’ temperatures could impact performance or safety;
New solutions for pipe and wire & cable applications and specialty compounded products characterized ensuring that the market can trust us to deliver the
were introduced when SABIC’s Sharq affiliate began by demanding combinations of thermomechanical innovation, volumes, and quality they expect.
producing new LLDPE grades. with electrical or optical properties.
28 SABIC
ANNUAL REPORT 2017 OUR BUSINESSES 29
AGRI-NUTRIENTS METALS
well protected by intellectual property rights, engagement, talent management, and leadership
ANAS KENTAB and the new products have received very positive MOHAMMED improvement-and-effectiveness programs.
Executive Vice President customer feedback. AL-ZAHRANI
For better plant operations, a number of initiatives
Agri-Nutrients President, Hadeed*
New and improved formulations have also been were taken to control fixed and variable costs. Hadeed
launched for: achieved a 13 percent saving in manufacturing cash
cost this year. In addition, manufacturing
–– A new tuber (potato) specific NPK grade and
capabilities were improved through enhancement in
two new nitrogen phosphate plus sulphur (NPS)
hot strip mill productivity.
We will relentlessly pursue fertilizer grades.
Our focus this year was to
–– Several water soluble fertilizers, through third Technology Management contributed by completing
operational excellence, maintain our party cooperation. strengthen market share locally and a few product and process optimization initiatives
efforts to develop new sustainable –– Water soluble fertilizers – a new market for SABIC,
actively explore new markets globally, that helped optimize costs.
with sales in 2017 to South Asia in July and to
products, and continue to seek Middle East markets in November. and also to drive operational and Logistics terminal facilities were repaired and
renovated, and a new wrapping machine was
growth opportunities globally to –– Urea calcium sulphate – first trial of the new grade
organizational efficiency to achieve installed to replace coils manual packing process.
was conducted in May 2017, second trial of the
serve our customers and meet new grade plus zinc and boron was conducted sustainable cost leadership and In addition, Hadeed enhanced its material handling
process efficiency, saving around 42 percent of total
ever-growing demand. in December, besides ready for field test, lab test
enhance our competitiveness. process cost.
and pre marketing.
Sustainability continued to be a priority. Using
Agriculture field days in Saudi Arabia helped to industrial wastewater from an iron-making unit at
promote sustainable agricultural development for our electric arc furnaces has helped reduce water
THE YEAR key strategic crops like date palms and tubers. THE YEAR consumption; a Furnace System Optimization
Agri-Nutrients continued to develop new We continued to partner with the Ministry of Energy, 2017 was another challenging year for our Metals Process saved energy and improved yield and
formulations, construct new plants, and build Industry and Mineral Resources to take a field business unit, with a subdued market and limited productivity; and life-cycle assessment helped
ever-deeper relationships with the farmers who caravan to various regions to engage with farmers, government infrastructure spending impacting gauge environmental impact of production, usage,
use our products. The agreement signed with the promote SABIC products and solutions and provide productivity and sustainability KPIs. The integration and recycling for three newly developed products.
Ministry of Energy, Industry and Mineral Resources guidance on how to get the best out of them. of Metals and Hadeed was completed successfully. Despite the challenging market conditions, Hadeed
to manage the Sustainable Agriculture Research This strategic move enabled us to enhance the levels expanded the sales map for long products,
and Development Center (Estidamah) for its first five THE FUTURE of agility and efficiency in our manufacturing and exporting 95KMT to seven countries. Sales of flat
years recognizes the ongoing commitment to our We will continue to work on developing innovative commercial efforts. product to the oil-and-gas sector were up 23 percent
fundamental mission: continually helping our formulations to target particular characteristics of year on year, with a 32 percent lower finished
Following the business restructure, new prospects
customers to produce more and better food for selective crops more closely, with a view to helping products inventory compared to that of 2016.
and markets have been identified. For the first time
the world’s growing population. farmers boost the yield and quality of their produce. in Hadeed’s history, SABIC exported billets, besides
We will redouble our efforts to reach out penetrating the North African market with cold- THE FUTURE
THE HIGHLIGHTS to customers, developing a clearer picture of the rolled coils. The new organizational structure and the Hadeed
Our nitrogen business successfully boosted practical and commercial issues they face and
Transformation Project will enhance our business’s
revenues through market optimization across equipping us with the knowledge we need to help
them address those issues more effectively. THE HIGHLIGHTS effectiveness and efficiency, increasing our
the value chain. competitiveness and aiding strategic focus, as well
In pursuit of SABIC’s 2025 strategy, we focused on four
Numerous products reported improved sales for key areas fundamental to our business performance: as getting the right capabilities to support strategy,
We will also continue to work on improving and
the year, including diammonium phosphate (DAP) improve agility, flexibility and responsiveness, and
expanding our production capabilities. Although –– Business efficiency – through improving our
– up 17 percent year on year; nitrogen, phosphorus, enable business growth.
we have achieved significant improvement in recent commercial capabilities, differentiating product
potassium (NPK) – up 100 percent year on year; years, there is always room for further progress in We will continue to extend our product portfolio
offerings, and business transformation.
and technical grade urea (TGU) – up 125 percent reducing waste and cutting cost, improving safety with new sizes and grades. We will also continue to
–– Cost optimization – through enhancing
year on year. and preventing breakdowns, and optimizing our explore new international markets and build new
conversion costs and optimizing management
The year also saw the launch of a new nitrogen production and supply-chain processes. We aim to of working capital and capital expenditure. distribution channels.
sulphur fertilizer group of products combining urea do this efficiently, and in ways that minimize our –– Innovation – through more closely integrating In parallel, we will continue working with government
and calcium sulphate, which avoids the security environmental impact. creative, innovative, and business development agencies to help mitigate potential risks, enhance
issues that restrict ammonium nitrate options in initiatives into the business’s activities. our local market share, achieve premium prices, and
many markets. The manufacturing process has been –– Human resources – through implementing outperform our peers, enhancing Hadeed’s position
diversified strategic workforce planning, as a pioneer in the steel industry, locally and regionally.
*Metals products are supplied under the SABIC brand through Hadeed, a fully owned manufacturing affiliate of the company.
30 SABIC
ANNUAL REPORT 2017 31
OUR CORE
TRANSPORTATION 32
AGRI-NUTRIENTS 34
MARKETS
CONSTRUCTION 36
MEDICAL DEVICES 38
PACKAGING 40
CLEAN ENERGY 42
TRANSPORTATION
Innovative SABIC materials are helping minimize the environmental SMARTER MATERIALS
FOR A BRIGHTER FUTURE
impact of our insatiable desire to travel, and offering designers new
A new LEXAN™ resin grade enables new, distinctive,
options for differentiation. complex headlight bezels with enhanced aesthetics
– highly valued by motor vehicle manufacturers
eager for the design touches that will give their
Left: SABIC’s innovative materials product standout appeal in an overcrowded and
reduce energy requirements. highly competitive market.
Below: The award-winning injection- SABIC has also added two new LEXAN™ XHT resin
molded instrument panel carrier from
BMW’s 2017 MINI Countryman. grades, which offer improved flow at high
temperatures compared to other high-heat
Below right: SABIC materials help make
a difference in aesthetics and design. polycarbonate materials. Though light-emitting
diodes run relatively cold, their headlamps can
still generate a lot of heat. Many high-heat
polycarbonates suffer flow problems, and they
generally cost more than regular materials. The
improved flow offered by the new grades allows
production of high-quality parts, and can reduce
overall system cost as well.
AGRI-NUTRIENTS
Of all the issues facing us in the 21st century, perhaps none BUSINESS COOPERATION NEW PRODUCTS FOR MULTIPLE NEEDS
BRINGS NEW PRODUCTION
is more pressing than hunger. In SABIC’s collaborative efforts The Ma’aden Wa’ad Al Shamal Phosphate Company
SABIC added Technical Grade Urea (TGU) to
its Agri-Nutrients portfolio to achieve greater
to help feed the world, our ingenuity is a valuable resource. was operationally launched this year. diversification, add more value, and support
the company’s sustainability objectives.
This major new joint venture saw SABIC join with
Ma’aden and Mosaic in the construction of a new SABIC TGU is produced at SABIC’s Al-Bayroni urea
GREATER NEEDS DEMAND WORKING FOR SECURITY, plant, with a potential production capacity of 3 plant using Rotoformer technology, which enhances
GREATER EXPERTISE SAFETY AND SUSTAINABILITY million metric tons, to help meet ever-growing the product’s physical and mechanical properties.
As populations continue to rise and land comes The Sustainable Agriculture Research and demand for diammonium phosphate (DAP), The plant can produce up to 80,000 metric tons of
under ever-greater pressure from urbanization, the Development Center (Estidamah) was initiated in monoammonium phosphate (MAP), nitrogen, TGU a year – a 46 percent pure urea that is targeting
challenges of meeting the demand for food, feed, 2008 when SABIC, with the support of the Ministry phosphorus, potassium (NPK) and nitrogen environmental control application where TGU
fiber, and fuel become steadily more pressing. This of Energy, Industry and Mineral Resources, phosphate plus sulphur (NPS) products. solution is used to remove NOx in diesel engines and
year, the United Nations’ annual report on world established a fund to create the center. Located in heavy oil-based power generators.
Commercial production of ammonia began in
food security and nutrition brought the sobering Riyadh Techno Valley on the campus of King Saud January 2017, pre-commissioning began in July, TGU sales recovered this year as sales to South Asia
news that, after falling steadily for a decade, world University, the center was built to perform applied and the first SABIC shipment of 30,000 metric tons began for the first time, and European sales were
hunger is once again on the rise because of research on innovative techniques for agriculture. of Dark DAP was dispatched in November. up significantly. The company is currently considering
population growth. proposals to expand production capacity.
The center’s primary focus is on increasing
As ever, applied expertise can help. SABIC production to improve food security in Saudi Arabia;
scientists continue to develop selective grades improving quality and food safety, while minimizing
of fertilizers and crop solutions that help turn given pesticide use; and enhancing water-use efficiency
resources of land, water, and sunshine into better, for sustainability benefits. Areas currently under
Below: Estidamah’s research
and more-reliable food supplies. This is not just lab investigation include climate control, irrigation and focuses on increasing
expertise. A significant proportion of Agri- plant nutrition, integrated pest management, and production to improve food
Nutrients’ efforts is devoted to getting into crop management. security in Saudi Arabia.
the field, talking to the people who work the land, Right: SABIC continues to
Newly developed water soluble formulations develop selective grades of
and helping them gain the skills to put SABIC’s
targeted to the Saudi Arabian market were tested at fertilizers and crop solutions.
expertise to the best possible use – for their
Estidamah, and proved to boost yields by around 30
benefit, their communities, and the world at
percent compared to current practices. Further tests
large. Nowhere does ‘Chemistry that Matters™’
in the field with customers are being conducted, with
matter more.
crop-specific products for tomato, cucumber and bell
pepper. New formulations for date palm and olive
trees in 2018 will expand SABIC’s product offerings.
CONSTRUCTION
MEDICAL DEVICES
Ever-larger and longer-living populations bring opportunities for medical STUDY AND ANALYSIS INSPIRE
NEW POSSIBILITIES
device manufacturers, and place a premium on SABIC’s lighter, stronger, SABIC has been working closely with an industry-
smarter materials which help them meet the demands. leading firm in engineering and industrial design
to analyze a number of market-leading point-of-care
diagnostic devices, looking to identify opportunities
for SABIC materials to reduce cost and weight without
HELPING PEOPLE WORLDWIDE LEAD NEW PP FACILITY TO MEET NEW NEEDS compromising performance. The collaboration Below: SABIC is committed to producing
LONGER, HEALTHIER LIVES SABIC this year launched a new polypropylene (PP) resulted in multiple concepts, illustrating “what is advanced materials that can support and
All around the world, people are living longer, extrusion facility to meet emerging material empower our customers’ endeavors in
possible” for original equipment manufacturers developing the next generation of
healthier lives. Increasing, ageing populations bring requirements and market needs. The new facility, and their designers when they work with SABIC lightweight applications.
an ever greater need for a wide variety of located at our Geleen site in the Netherlands, next-generation devices.
sophisticated new medical devices. supports customers’ needs for advanced materials
in the healthcare sector and a variety of other The team also engaged with a leading firm in
The healthcare industry, constantly pushing out medical-device design and engineering to study
industries.
the boundaries of what is possible, practical and future trends in diagnostics and drug delivery.
commercially viable, looks to materials suppliers to The new line, using innovative process technology The project delivered detailed device-development
provide innovative products and grades to meet to produce SABIC® PP copolymer products, started roadmaps that helped to generate a wide array of
ever more demanding requirements, and enable up in late 2017. Investment in this highly automated new ideas for healthcare product offerings – with an
new medical equipment and devices. Increased and technologically sophisticated process eye to future trends. Such active collaboration with
resistance to stronger disinfectants and other exemplifies SABIC’s commitment to produce expert third parties in the device-design-and-
chemical challenges; enhanced plasticity and advanced materials that can support and empower engineering community helps us focus and fine-tune
strength, to enable new designs that provide our customers’ endeavors in developing the next our development efforts, aligning them more closely
better patient ergonomics; and – not least – generation of lightweight applications. The new with the challenges the industry faces, and positions
lower cost, to deliver competitive advantage. process can help reduce energy consumption SABIC as a leading solutions-provider and proactive
through lower processing temperatures and partner that helps our healthcare customers
shorter cycle times. develop the next generation of devices.
COLLABORATING TO DEVELOP
NEW SOLUTIONS
This year, SABIC worked together with Shanghai
Shengguang, a leading Chinese plastic injection
molder, to highlight the advantages of SABIC’s
NORYL™ and LEXAN™ structural-foam solutions
for metal replacement in large medical-
equipment components.
The collaboration demonstrated how SABIC’s
structural-foam technologies can deliver greater
design freedom, with up to 50 percent weight
Above: SABIC supports customers’
reduction, as well as cutting system costs by up
needs for advanced materials in the
healthcare sector. to 30 percent through the elimination of common
Right: Providing better patient secondary operations such as machining and
ergonomics through products that pre-painting acid treatment.
enhance plasticity and strength.
Combining greater design-innovation capability,
material-and-process cost reductions, and higher
overall performance than traditional metal options,
these structural-foam solutions increase our
customers’ scope in developing new devices.
40 SABIC
ANNUAL REPORT 2017 OUR CORE MARKETS 41
PACKAGING
SABIC ingenuity is finding ever more innovative ways PRODUCTIVITY AND PERFORMANCE SAVING ENERGY,
BOOSTING PRODUCTIVITY
to help the world’s manufacturers protect their products COHERE™ polyolefin plastomers (POP) are a new
portfolio of flexible packaging solutions using SABIC® FLOWPACT ™ impact copolymers family
without damaging the world we live in. Nexlene technology as a sealing and adhesion has been extended with the introduction of a
enabler. The products offer a number of enhanced new polypropylene solution for rigid packaging
features in flexible packaging: applications such as containers, caps and closures,
and for a wide variety of consumer goods.
–– Usage as a sealing layer in multilayer structures.
–– Better seal integrity, enabling productivity boost Trials at several manufacturers have clearly
through faster line speeds. demonstrated its benefits, with a market-leading
–– Usage as an adhesion layer in multiple combination of high stiffness and high impact
applications, such as stretch film, silage film, strength. The new product offers customers
cling film. savings by way of lower production costs, by
–– Excellent puncture resistance at low temperature. enabling thinner walls and fast injection, boosting
–– Very high stiffness, and an excellent stiffness/ productivity while cutting energy consumption.
toughness ratio.
–– Very high tear resistance.
The combination of productivity benefits in
production and material advantages in use, make
POP an excellent “door opener” for the entire
product portfolio in the flexible packaging industry.
CLEAN ENERGY
Energy’s environmental impact may be this century’s single biggest CUTTING WEIGHT CUTS EMISSIONS Below: STAMAX™ resins deliver the strength
and stiffness of steel at a fraction of the weight.
challenge. The innovators working to address it are empowered by As the world’s demand for cars grows unabated,
the pressure is on manufacturers to develop options
ever smarter material options devised by SABIC scientists. that meet demand without harming the planet.
Electric vehicles are clearly part of any potential
solution; a key challenge is to reduce vehicle weight,
enabling extended range and reduced emissions.
SABIC expertise equips automakers with material
solutions to help meet that challenge.
Use of STAMAX ™ resin this year enabled Chinese
automaker Chery to cut the weight of the inner
tailgate structure of its new eQ1 electric vehicle by
40 percent. This low-density long-glass-fiber-filled
polypropylene material delivers the strength and
stiffness of steel at a fraction of the weight. SABIC
also delivered development support with computer-
aided engineering analysis, enabling performance-
optimization of the part – Chery’s first plastics-
intensive tailgate and the first from any
Chinese manufacturer.
Meanwhile, building further on our portfolio of
lightweight material, SABIC also launched a
completely new generation of melt-strength
polypropylenes product, SABIC® PP-UMS. It has the
highest melt strength in the industry, enabling an
unprecedented level of weight reduction. It is a pure
and clean building block, efficient in processing, with
unique foam-ability properties.
ELECTRICAL
AND ELECTRONICS
We love our devices! We want them smaller, lighter, smarter, and at ever
lower prices. Innovative materials from SABIC are helping meet the demand.
OUR COMMITMENT
HUMAN CAPITAL 50
MANUFACTURING 60
SUPPLY CHAIN 64
SUSTAINABILITY 66
48 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 49
CORPORATE SOCIAL
RESPONSIBILITY
SABIC and its people engage in a wide range of activities and
programs under the banner of corporate social responsibility
(CSR) all around the world.
Whether volunteering to help local communities, Left: SABIC Science Caravan toured three cities partnership with the Department of Education and
donating to good causes, or empowering future in Saudi Arabia, motivating the next generation various non-governmental organizations, aims to
to learn about the benefits of science.
generations through educational initiatives, our ensure that no child is disadvantaged in his or her
Below: The Lights of Our Future program has
CSR efforts always focus on sustainability and reached more than 1,300 Chinese students.
educational progress by an inability to clearly see
enduring impact. blackboards and teachers.
Our global CSR strategy, RAISE (Reputation, Houston employees boosted their own health and
Audience, Innovation, Strategy, Endurance), wellbeing with the seventh year of participation in
provides the framework. Within that framework, the MS150 bike race – a two-day, 180 mile ride,
registered groups and national organizations which this year took place in challenging weather
devise their own initiatives and follow them through conditions. The circumstances didn’t prevent them
– with financial and other help from Corporate CSR from raising US$12,000 for charity.
as needed.
The Ottawa, Illinois, site hosted students from
RAISE supports communities wherever SABIC Illinois Valley Community College as part of their
operates and maximizes the benefits of our CSR Manufacturing Expo Day, an event that gives
activities by encouraging employee participation students insight into the opportunities in
and volunteerism. This way, the strategy helps to manufacturing. The students got a special look at
enable CSR initiatives, on a large scale, anywhere how SABIC operates as a global business and were
in the world. exposed to manufacturing operations through tours
of the maintenance and compounding areas.
SCIENCE AND TECHNOLOGY EDUCATION ENVIRONMENTAL PROTECTION
DONATION AND INVESTMENT In Brazil, SABIC’s Campinas site launched a new
SABIC has a longstanding and highly successful SABIC this year made a major contribution to a new
This year, SABIC donated US$57.5 million in initiative employing a smartphone app to track
track record in supporting educational initiatives all flood-defense project near its Teesside plant in the
community giving (compared to US$46.4 million employee physical activity throughout the year.
around the world, aiming to train the next UK. Working in partnership with the UK
in 2016). Altogether, SABIC has invested more than Whether biking, running, or walking, employees
generation in the skills they will need in the future government’s Environment Agency, SABIC
US$800 million in socially responsible projects will be racking up healthy kilometers knowing that
and to help promote less-technical talents, such as contributed £5 million – almost half of the total £11
and programs over the past 15 years. a collective 35,000 km will trigger a substantial
communication, networking, and teamwork. Specific million budget – to build flood defenses around the
charitable contribution from the company to a
programs this year included: mouth of the River Tees and Greatham Creek: a
local organization.
SERVING THE COMMUNITY broad, flat, swampy area always at risk and
–– Girls Day – a special initiative in Bergen Op Zoom,
Our strategy for serving communities focuses on previously hit by serious flooding caused by tidal
the Netherlands, to break down gender WATER AND SUSTAINABLE AGRICULTURE
specific, strategic, timely issues – issues where the surges. SABIC funding made phase two of the
stereotypes and encourage girls interested in a
right intervention at the right time can deliver real, overall project possible, and the resultant defenses Following a number of meetings with city officials to
future in science and technology. Some 27 young
visible, and above all enduring benefits to the will offer protection to a less-affluent local investigate how SABIC could best help the local
girls learnt from SABIC employees – both men and
communities in which we operate. SABIC’s community and local wildlife. community cope with the worst drought in South
women – about life as an employee at a chemical
commitment to volunteerism is long established and Africa’s history, the company focused its efforts on
manufacturing plant. This November, SABIC teamed up with local Family
deeply entrenched in our organization’s culture. Boundary Primary – a school in a disadvantaged
–– Lights of Our Future – this June in China, SABIC Service Centers in Singapore to arrange a morning
area suffering from high leakage levels due to old
When Hurricane Harvey impacted Houston, Texas, extended this well-established program beyond beach clean-up. The program both enhanced the
and dilapidated plumbing. A comprehensive repair
in September, more than 40 SABIC employees got the campus limits with the Lights of Our Future environment and helped primary school children
program addressed the leakage, reducing wastage
together at the NRG Stadium to create and run an River Conservation Program, which joined with understand the impact of waste and the
and the school’s bills – leaving more to spend on
emergency shelter for displaced people, while local authorities to look into ways to conserve environmental challenges of a “throw-away” society.
other essentials – and setting up irrigation from
another group helped the Best Friends Animal rivers in the communities where we operate. As of
greywater-rainwater tanks to irrigate the school’s
Society rescue pets and reunite them with owners. November, the Lights of Our Future program has
HEALTH AND WELLNESS new vegetable garden.
reached more than 1,300 Chinese students and
In December, SABIC sites throughout Europe In November, SABIC employees in Thailand fitted a
received recognition with awards from local
marked International Volunteering Day with large water filtration system at Bann Khao Hin
organizations.
celebrations and the adoption of SABIC’s global Nursery and Primary school, assuring a reliable SABIC DONATIONS
–– Science Caravan – this year’s caravan went to
policy of encouraging employees to devote eight supply of fresh water for up to 500 people. Extra (US$)
three cities in Saudi Arabia: Jouf, Araar, and Jazan,
hours a year to SABIC-sponsored-or-approved filters were provided to ensure that the system will
bringing together almost 200 volunteers and over
volunteer activities. function for a decade or more.
57.5m
12,000 visitors in a series of workshops,
interactive activities, and exercise and training In India, SABIC’s They See, They Learn initiative
sessions. The caravan motivated the next continued to deliver eye-care and free spectacles to
generation to learn more about the benefits of school children in Delhi, Bengaluru, Chennai,
2016: US$46.4m
science and learning in general. Vadodara, and Mumbai. The program, run in
50 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 51
HUMAN CAPITAL
Our talented and committed people are key to everything we do for CONTINUOUS LEARNING LEADERSHIP WAY
our company, our partners, our innumerable global customers, and SABIC Academy in Riyadh remains our global center
of learning where we advance our knowledge, share
This year, SABIC embarked on an “Our Leadership
Way” journey to help achieve its 2025 strategic
the future of the world. expertise and develop our people. To maintain a foundations, specifically talent development and
culture of continuous learning, we provide transforming organization and culture. A Corporate
exceptional training and career-development HR task force has been focusing in particular on
opportunities. The curriculum for new employees developing a leadership strategy to build capacity
To achieve our vision to be the preferred world
focuses on long-term development at the SABIC and capabilities, and distinguish SABIC’s way of
leader in chemicals, SABIC must be able to attract,
Academy and other leading institutions. leading from that of its peers.
develop, and retain the best talent in our industry.
SABIC is committed to becoming an employer of The Academy offers competency-based learning, Global cross-functional HR teams looked at
choice because we believe that our success as a both at the Academy and through e-learning, with how SABIC could develop a set of guiding
company starts with our employees. over 5,000 online programs accessible to every one priorities that would anchor its purpose of
of our 34,000+ global employees. It conducts ‘Chemistry that Matters™’, its underlying
To achieve this goal, SABIC’s Human Resources is
continuous professional programs leading to commitments, and its values of Inspire,
structured to create a work culture that encourages
recognized certification in disciplines such as sales, Engage, Create and Deliver. The result was a clear
continuous learning, provides exceptional career
marketing, finance, and supply chain. Its external and meaningful framework that was inclusive
opportunities, and offers attractive rewards
outreach efforts, with dedicated government of SABIC’s purpose and values.
for performance.
programs, have already produced over 100 highly
Our Leadership Way stresses four leadership
One of our proudest achievements is our consistent qualified graduates, equipped with the skills to
priorities: Talent Champion, Collaboration Partner,
ranking as the employer of choice among Saudi become SABIC’s leaders of tomorrow.
Innovation Pioneer, and Excellence Driver.
Arabian graduates.
Our leadership development process stresses early
identification of leadership potential within the
EMPLOYEE DIALOGUE
HUMAN RESOURCES FORUM organization. Throughout this process, we look for
The Employee Survey saw SABIC employees clearly
We continued this year to invest heavily in support those who exhibit professional excellence and –
articulating aspects of working in the company they
of Saudi Vision 2030 and SABIC’s 2025 strategies. most importantly – the ability to execute logically
strongly appreciate, along with areas of concern
The goals set by Vision 2030 are ambitious, but we conceived business strategies. The program covers
where they believed change and progress
believe they can be met through the efforts of our the candidate’s progression journey – from an
were needed.
creative and driven people. We are contributing individual contributor to enterprise leader – through
towards fulfilling the Vision by developing best a three-stage process, beginning with Skills-focused SABIC maintained the dialogue with all its
practices in human resources in Saudi Arabia and Leadership Development, Focused Leadership employees, ensuring that managers are held
preparing young Saudis for the labor market by Above: Dr. Ali bin Nasser Al-Ghafis, Minister Development, and finally, Comprehensive accountable – and are seen to be so – for taking
advancing their skills and potentials. of Labor and Social Development, addresses Leadership Development. action on employee feedback.
the Human Resources Forum in Riyadh.
A Human Resources Forum, under the theme, Several other learning programs are geared to meet Responding to the findings of the dialogue, the CEO
“Transforming HR: Enabling Saudi 2030 Vision,” dedication to learning innovation and a commitment SABIC’s strategic business objectives: Supply Chain and the leadership team recognized the need for
was held at the SABIC headquarters in Riyadh from to social responsibility. Development, SABIC Procurement Employee Early SABIC leaders to engage proactively and openly
October 15 to 17, bringing together five keynote Development, Finance Development, Information with their teams. The aim was to share the results of
speakers and a targeted audience of over 500 The forum witnessed the signing of three Technology Early Career, and SABIC Engineer the dialogue and discuss the implications, both for
participants, from SABIC and a wide range of Memoranda of Understanding in support of two key Early Development. individual employees and for the teams within which
external partners, including government, small- pillars of the 2030 vision – “thriving economy” and they work; identify key focus areas of concern for
“vibrant society” – with: Being a learning organization, with a unique and
and-medium-sized enterprises, and academia. particular working groups; and work together as
world-class learning strategy tailored to accelerate
Six developmental programs and over 70 learning –– King Salman Youth Center – aiming to develop an teams to create and execute action plans to address
employees’ career development, SABIC has
breakout sessions were held, covering everything innovative and inspiring community to support identified areas of concern.
collaborative relationships with leading educational
from entrepreneurship to the development of Saudi youth in realizing their full potential and and technical institutions spanning the globe. We Following the initiative, the Pulse Dialogue Survey
learning communities, consistent with our overall exploring their own ideas. currently work with leading organizations including assessed all employees globally to understand
strategy for contributing to Vision 2030. –– Ministry of Civil Service – looking to enable the King Abdullah University of Science and Technology, whether the proposed management/employees
Further aligned to the objectives of Saudi Vision exchange of Human Resources knowledge and King Saud University, Pennsylvania State University, dialogue had taken place, how participants felt
2030, a consistent key theme in our HR strategy this expertise and the sharing of HR best practices Chinese Academy of Sciences, National University about the progress that had been achieved, and
year remained Saudization, and we continue to make and solutions, via the creation of a “Regional HR of Singapore, and Cambridge University. whether they were aware of the results and action
good progress. Think Tank”. plans arising out of the initiative.
–– Ministry of Education – promoting a “production
SABIC held its Summer Innovation Program in July culture” by creating an inspiring space where
and August at locations throughout the Kingdom: Saudi students can be supported in exploring
Riyadh, Jubail, Yanbu, Hail and Abha. In their innovative ideas.
collaboration with organizations such as King
Salman Youth Center, InnovEngine and Maker Faire,
the program engaged 1,100 high school students,
both boys and girls, in activities designed to build
52 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 53
INNOVATION AND
BUSINESS DEVELOPMENT
SABIC has created an integrated Innovation and Business Development
function consisting of a global team of experts in many specialized fields,
to drive the company’s future growth in all aspects of its business.
In 2017 this comprised 2,150 employees working shear rates simulating real injection molding
on 690 research projects – short, medium and long conditions, informs our research into fiber breakage
term – at 21 research centers around the world. and dispersion, ultimately leading to improved
properties and performance.
Our scientists and engineers this year submitted
741 new Invention Disclosures to protect SABIC At the recent GPCA PlastiCon conference in Abu
intellectual property and safeguard our presence Dhabi, the SABIC foam team, in partnership with Hira
in critical market segments. 992 new patents were Industries LLC, won the 2017 Plastic Excellence Award
granted in 2017. (in the joint development category), for SABIC’s new
LDPE dedicated foam grade LDPE HP2024NDF. SABIC
SABIC Technology Store developed to boost our
also recently took a bronze Emirates Energy Award,
licensing-in process by more than 30 percent.
in the ‘large energy projects’ category, making
Numerous license agreements, some in new areas
SABIC one of 33 winning companies out of 210
such as coal gasification and methanol to olefins
competitors from around the world.
technologies, were also executed.
The SABIC team is supplemented and supported by
Left and above: SABIC’s advanced
NEW POLYETHERIMIDE MATERIAL
an extensive global collaboration network of over 90
technology and innovation facilities Electric vehicles are at the cutting edge of technical
universities and institutes including King Abdullah
support the company’s businesses to innovation, as efforts increase to cut weight, for lower
University of Science and Technology, Delft develop new, specialized products.
fuel consumption and emissions and greater range.
University of Technology, Rice University, Chinese
Academy of Sciences, Georgia Institute of An exploratory research program that began
Technology, University of Toronto, ETH Zurich, six years ago, looking to identify electric vehicle
University of Konstanz and University of Naples, as powertrain component consolidation opportunities,
SABIC licensed its own technology and realized the –– FORTIFY ™ polyolefin elastomer (POE) for
well as advanced prototype and system designers recently resulted in a unique high heat,
first commercial production of ABS in Saudi Arabia, thermoplastic olefin elastomer (TPO) – well-
such as Holst Center and Nottingham Spirk Design. high-performance film for professional-grade
and agreements were signed to license two received by the automotive industry for its
dielectric film capacitors.
polyolefin proprietary technologies – UHMWPE and excellent flow and impact properties.
PLANT AND PRODUCTIVITY LDPE CTR® clean tubular reactor – for use in China. –– A new hybrid injection molding technology for Traditional capacitors build up heat in the powertrain,
In petrochemicals, SABIC continued implementing combining plastic and metal, reducing weight and making a cooling system necessary. First generation
Metals addressed challenging market conditions
innovative technologies to maximize asset enhancing energy absorption. Six different OEM ULTEM™ UTF120 film, a new polyetherimide (PEI)
with optimization initiatives in long products 2300
productivity and enhance efficiency, focusing on its programs are now underway in Europe, China material which was launched in early 2017, provides
& SH2400 chemistries to reduce ASTM A615 Grade
major building block out of its global steam crackers, and the US. higher energy density than regular polypropylene
60 rebar production costs, the production-boosting
with improvements to online optimization, yields, –– SABIC PP® UMS – a building block for new foaming films, allowing manufacturers to design for higher
installation of the Expert Furnace System
anti-coking tube technology, and high emissivity solutions across a wide range of applications from temperatures, which in turn enables elimination of
Optimization Process (EFSOP) at Electric Arc
coating applications. In Europe, SABIC has been packaging to automotive. the cooling system and allows the capacitor to be
Furnace, and development of new product, such
exploring ‘circular economy’ innovations with –– Polyacetal (POM) and SABITAL™ (glass fiber located close to the chip set, offering greater design
as ASTM A706 seismic 12 mm rebar.
industry collaborators, maximizing glycol yields reinforced POM), from the new plant at our Ibn flexibility and lower impedance.
through the adoption of world-class catalysts, Sina affiliate in KSA.
and exploiting CO2 capture and re-use to add value NEW PRODUCTS IN POLYMER –– Elastomer versatile butadiene rubber (BR) and
and improve our sustainability footprint. Over 60 new products and applications were ethylene propylene diene monomer rubber
introduced to the market in 2017, many bringing (EPDMs) for applications from automotive
SABIC also completed the process design packages
significant advances in features such as rigidity and to construction.
for expanding and building plants based on our
weight-reduction, with applications from packaging
butadiene extraction process technology, and A new HDPE application featuring a unique
to construction. New products this year included:
developed a proprietary technology to produce multimodal molecular design, created for a floating
polymer-grade high purity isoprene for use in butyl –– Two environmentally-friendly high flow solar panel system project in China, passed all
rubber and other polymer applications. phthalate-free polypropylene grades for thin crucial tests.
wall food containers.
Global expansion continued, with the inauguration Leveraging our leadership in long-glass-fiber-filled
–– Shrink barrier packaging with unique seal-through
of a new polypropylene (PP) pilot plant in Geleen, polypropylene, collaboration with universities has
capability, providing excellent packaging integrity
the Netherlands, and investment in a PP extrusion contributed to the recent development of a unique
and processability.
facility, to accelerate the development and high-speed couette device which, by delivering
commercialization of new material solutions, and
respond to changing market needs.
54 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 55
INNOVATION AND
BUSINESS DEVELOPMENT
continued
741
an estimated 30,000 direct and indirect jobs,
and further stimulating economic diversification. impact, and projected water and energy needs. 2017
With investments shared equally by SABIC and saw the successful completion of 110,000 meters of
Saudi Aramco, it’s forecast that by 2030 the new drilling, and collection and analysis of over 30,000
complex will provide a 1.5 percent boost to Saudi samples. The initial study suggests reserves of over
Arabia’s GDP. NEW PATENTS 1.7 billion tons of iron ore.
GRANTED By the end of 2018, SABIC expects the feasibility
GROWTH PROJECTS studies to enable completion of the procedures
992
UNITED STATES for granting the project company an
SABIC is actively seeking investment opportunities exploitation license.
in the US in pursuit of its clear growth strategy of SABIC is also working on a number of initiatives in
leveraging competitively priced US feedstock, Africa in targeted products, markets, and located
particularly in methane and ethane derivatives. in different countries, in which will be publicized
SABIC and ExxonMobil are conducting a study into SABIC is continually seeking to enhance its presence SABIC and its strategic partner SINOPEC, at the right time.
building and operating a petrochemical complex in in the Chinese market, as a key factor in the pursuit meanwhile, have signed a strategic cooperation
of the company’s strategic objectives as a global agreement during the visit of the Custodian of the
St. Patricia, Texas, on the US Gulf, and signed a MERGERS AND ACQUISITIONS
number of agreements for the construction of an leader in petrochemicals. Recently awarded ‘Best Two Holy Mosques to China in March 2017, and
SABIC is studying acquisitions totaling US$3-6
ethylene plant. These agreements cover the Employer’ by China’s Association of International submitted a tender for expansion of the Tianjin
billion, in petrochemicals, specialty chemicals and
engineering studies phase of the project, Chemical Manufacturers, SABIC continues to help plant, to produce polycarbonate using SABIC’s
agri-nutrients, in a number of global and regional
completing and updating technical and commercial drive growth through expanding investment and wholly owned technology.
markets, particularly petrochemicals in North
studies, and defining business mechanisms employment opportunities, stimulating innovation,
America and China, and agri-nutrients in Africa,
between the two parties for the next phase. The and extending cooperation with our partners. AFRICA
India and South America.
joint work team has so far selected the land, signed September 2016 saw the signing of an agreement Work proceeds on SABIC’s Mauritania Saudi Mining
agreements and awarded contracts for the early and Steel Company (TAKAMUL) project, a joint As part of these efforts, SABIC signed an agreement
with SNCG of Chinese giant National Energy
site works. Other commercial agreements with venture between SABIC and SNIM (Société Nationale with Shell Arabia Limited in the first quarter of 2017
Investment Group, previously known as Shenhua
ExxonMobil are being finalized, while the Final Industrielle et Minière) in the Islamic Republic of for the acquisition of 50 percent of Shell’s joint
Group, and Ningxia Government, to create a
Investment Decision (FID) is expected to be Mauritania, aiming to supply SABIC’s KSA plants, venture in the Saudi Petrochemical Company (Sadaf),
world-class coal to olefins and high value derivatives
taken in 2018. overcoming global shortages of high quality iron ore. in Jubail Industrial City, for approximately US$820
project – the Wolfberry/Shensha project – in Ningxia.
million. The transfer of ownership to SABIC took place
SABIC is also considering a number of other The joint work team has completed detailed Exploration works began in 2013 at the Atomai Site,
in the third quarter of 2017, making Sadaf fully owned
investment opportunities in the Gulf of Mexico. technical and commercial studies, and on July 18, in Zouerate, northern Mauritania, about 700 km
by SABIC. Sadaf is one of the Middle East’s largest
2017, SABIC signed multilateral licensing and from the capital Nouakchott, with geological drilling
petrochemical complexes, consisting of six world-
CHINA engineering agreements with the Shenhua Group and sample-collection, with the help of contractors
class petrochemical plants with a total annual
and other global partners. Licensing and approval and local and international laboratories. The
SABIC currently has various facilities in China, production capacity exceeding 4 million metric tons.
by the National Development and Reform encouraging data collected led to the appointment
including a petrochemical complex in partnership
Commission (NDRC) is imminent and is expected to in late 2016 of a specialized international consultant
with SINOPEC, three engineering plastics factories,
be obtained during 2018. to conduct a Bankable Feasibility Study, due for
two global research centers, 18 sales offices and
more than 1,300 employees. completion in mid-2018. The final report will include
56 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 57
COMPLIANCE AND
RISK MANAGEMENT
SABIC’s Legal Affairs, Enterprise Risk Management and In SABIC, we endeavor to work to the highest We are using insurance solutions through highly
compliance standards, using a best-in-class controls reputable insurance companies as a risk transfer
Internal Audit departments are designed to safeguard the environment. With the FANAR+ SAP® Globalization mechanism, and our insurance program is working
interests of all SABIC stakeholders, including customers, project completed in 2016, we have been able to as designed to protect SABIC’s interests worldwide.
consolidate, harmonize and further improve our Credit risks are also mitigated through the use of
employees and shareholders, and to manage SABIC’s risks internal controls through a global platform. credit insurance and bank instruments. Our Global
in a way that promotes our 2025 goal of becoming the During 2017, we made substantial progress in Insurance and Credit Management team focuses on
world’s preferred leader in chemicals. the deployment of our global approach to access creating value through creative insurance solutions
and new practices, leveraging SABIC’s global
authorization to structurally govern access rights
from a global perspective and significantly reduce presence and networks.
segregation of duties risks across our business
processes within the SAP system.
All three functions regularly provide coordinated In Intellectual Property, innovation efforts led to INTERNAL AUDIT
reports to SABIC’s Executive Risk Management about 424 new original patent applications, with Business Continuity Management and the ability The Internal Audit Department audited SABIC’s
Committee. The SABIC Board of Directors’ Risk and emphasis on patent protection for high value to mitigate the adverse impacts of disruptive events operations in 2017, in accordance with the SABIC
Compliance Committee oversees the activities projects. SABIC’s overall patent estate exceeds remains a critical focus of the organization. In 2017, Audit Committee Approved Annual Audit Plan.
of the Enterprise Risk Management department 11,500 global dockets, even with increased scrutiny Business Continuity Management continued to Ernst & Young, SABIC’s external auditor, also
in assessing key business risks for the company. on existing patents to ensure they still serve focus on developing the SAP outage manuals for conducted periodic audits and reviewed the closing
The Board Audit Committee oversees the SABIC’s growth objectives. We also extended our end-to-end processes. However, it extended the financial statements of the company.
compliance and ethics activities of the Legal Affairs IP awareness training program to include many business interruption scenarios beyond SAP outage,
The Audit Committee, external auditors and internal
Compliance function and the Internal Audit function. of SABIC’s global affiliated companies. and applied a wider range of business interruption
auditors met frequently to discuss internal controls,
scenarios to SABIC and SABIC affiliates through the
emerging risks, and changes to the internal control
process of Business Continuity Management (BCM)
LEGAL AFFAIRS ENTERPRISE RISK MANAGEMENT ISO 22301 certification, which included developing
environment affected by the recent IFRS conversion
Legal Affairs promotes growth and supports ERM continued its productive collaboration and and preparation for the KSA Value Added Tax
and testing the Business Continuity plans. BCM will
commercial transactions and M&A, while providing support efforts towards SABIC’s business goals regulations. SABIC continues to maintain a strong
continue this deployment in 2018-2019.
strategic counsel to optimize opportunities and to with the following priorities in 2017: promoting a internal control environment through the
mitigate risk. The team also supports SABIC’s 2025 world-class culture of risk mindfulness, developing collaborative engagement of the Legal, Enterprise
goals in two key areas: it builds and maintains decision making processes that incorporate risk Risk Management and Internal Audit departments.
robust compliance processes and a strong
compliance culture to foster the highest ethical
calculations, and helping to assure business
continuity during the implementation of major
All three functions regularly provide The Internal Audit department completed all
planned audits for 2017, and included reviews within
standards; and it works closely with our leaders, projects and transformation initiatives. We also coordinated reports to SABIC’s some of SABIC’s affiliates. The department also
strategically protecting intellectual property to remain focused on driving operational excellence
maximize value from our innovation activities. in our global controls on process and access rights,
Executive Risk Management committed resources to its multi-year strategic
plan to enhance its operations in the areas of risk
The highlights of our Compliance and Ethics
and our insurance and credit risk programs. Committee. The SABIC Board of assessment, data analytics, auditor development
programs in 2017 include completing compliance In 2017, we continued implementing risk assessment Directors’ Risk and Compliance and audit methodology. Adherence to international
and risk mitigation reviews for 34 executive leaders tools and supporting risk based decision-making auditing standards is maintained through the
and their business or functional units, conducting techniques to effectively manage the organization’s Committee oversees the activities department’s expertise center for quality-assurance
Executive Compliance Leadership workshops for threats and opportunities. Embedding risk of the Enterprise Risk Management and improvement programs. In 2017, an external
Quality Assurance Review was performed over the
over 800 business leaders, and conducting a management processes and promoting risk
SABIC-wide integrity culture assessment to allow mindfulness across the organization have been the department in assessing key Internal Audit function and the results were shared
data-based planning for continuing to strengthen main focus in SABIC’s and SABIC affiliates’ existing business risks for the company. with the Audit Committee and executive management.
the cultural aspects of our program. processes. Timely response to risks and
opportunities across all entities of the organization The Board Audit Committee
SABIC also advanced its commitment to fighting
corruption. Internally, SABIC continued to improve
remains a top priority for risk management, to oversees the compliance and
ensure that risks are mitigated and opportunities
its ongoing supplier due diligence program,
leveraged to support SABIC’s growth strategy and ethics activities of the Legal Affairs
registering over 6,000 suppliers into a system
designed to evaluate risk and ensure integrity and
business gains. With global economic changes, Compliance function and the
rapidly evolving geo-political developments, major
ethical practices throughout its global supply chain.
competitive trends and an ever changing customer Internal Audit function.
Externally, leadership efforts included a role at the
landscape, Risk Management’s strategic focus has
B20 group on Responsible Business Conduct and
broadened to include “Risk Intelligence”. This has
Anti-Corruption, and participation in multiple
helped provide forward visibility on potential
compliance and ethics best practice sharing forums
events that could impact SABIC strategically
around the world.
and operationally.
58 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 59
ENVIRONMENT, HEALTH,
SAFETY AND SECURITY
SABIC strives to instill EHSS as a core value – a deeply held commitment HEALTH, SAFETY AND ENVIRONMENT During this period, the following EHSS projects were
also completed:
and a fundamental driver of behaviors, never compromised for short- Achieving EHSS excellence requires not only good
processes and systems, but also the right culture. e-SHEM solution, a globally consistent process for
term goals. We seek to proactively nurture a culture that goes beyond As part of the SHEMS+ initiative, SABIC this year logging, reporting and managing incidents.
compliance to embrace continuous improvement. undertook an in-depth EHSS culture assessment, to
e-SHEM module for Management of Change
provide a baseline and identify key cultural aspects
that we need to improve in order to achieve our goals. – successfully implemented by two Saudi Arabian
sites, with phase two planned for 2018, this new tool
The SABIC EHSS department worked with facilities to aims to simplify global implementation of SHEMS
improve emissions monitoring and take prompt action standards.
to meet and exceed legal requirements. Despite these
efforts, SABIC affiliates received a greater number of EHSS virtual town hall – conducted four global
notices of violations in 2017 compared to 2016. virtual town halls to share learnings and initiatives,
and provide a forum to share and discuss key EHSS
Further programs are under development for 2018 to improvement and risk management areas.
improve our performance in personal safety, industrial
hygiene, and environmental protection and compliance. Risk-based SHEMS audit – piloted assessments at
several sites in the EU and Middle East and Africa
regions using revised audit checklists that focus on
NEW SAFETY AND FIRE DIRECTIVE implementation effectiveness of the EHSS
IMPLEMENTATION management system.
Saudi Arabia’s High Commission for Industrial
Security (HCIS) this year issued a major update
and revision to the Safety and Fire (SAF) protection PROCESS RISK MANAGEMENT
directives, which is applicable to all our Saudi Because of the potential hazards inherent in many
Arabia-based affiliate operations. of our operations, process safety is a critical element
of our EHSS programs. In line with our 2025 EHSS
SABIC’s Global EHSS team and Engineering and goals, SABIC has developed and implemented
Project Management (E&PM) function completed a several programs to enhance process safety
preliminary review and gap analysis of SAF directives knowledge and competency across all functional
and communicated their conclusions to all affiliates’ roles, from operators to executive leadership, with
Above: All SABIC facilities are built to comply MEA sites, with a view to developing a common new programs planned for the coming years.
with the strictest international safety regulations. approach and implementation plan. All sites are now
March this year saw the launch of SHEMS+: our new to electrocution. We must, and will, improve further. identifying site-specific gaps and working with the This year, SABIC EHSS formally launched a unique
global EHSS transformation project. It aims to This year saw implementation of a company-wide EHSS Global Assurance (GA) team and the HCIS on and comprehensive internal Process Safety
transform EHSS management standards, drive Life Saving Rules project mandating precautions for implementation plans to ensure compliance. Competency Development Program for Engineers
sustainable EHSS performance and deliver EHSS high hazard activities. Developed from industry and at Jubail in partnership with Texas A&M University’s
leadership training. In-depth assessments at nine affiliate benchmarking, these rules set clear Mary Kay O’Connor Process Safety Center. The
SHEMS IMPLEMENTATION IN SBUS/ objective of the program is to develop, improve,
SABIC and affiliate sites generated site-specific expectations for all employees and contractors, FUNCTIONS AND OTHER INITIATIVES
recommendations and identified company-wide driving consistency in conducting hazardous work. and strengthen the process-safety competency
This year saw the SHEM rollout initiated in the of SABIC engineers through a structured, intensive
improvement opportunities. We will use these
We continue to develop new tools and promote SBUs and Corporate Functions as well as the training and qualification program.
opportunities to develop our 2018 initiatives.
sharing of best practice. One example is a new tool documentation. The full implementation and
Our Global EHSS organization, created in 2016 to to systematically assess risk and incident potential incorporation of SHEMS into their operations and The program’s competency training modules are
support and steer regional and facilities’ EHSS following any EHSS incident, helping to align resource business plans are set to be completed during 2019. structured on three levels, with each building on the
performance, was further strengthened in 2017, allocation with risk. Particular effort was devoted to one before: developing, proficient, and advanced.
providing support across all regions by dedicated education in order to help staff understand why, and The first level develops knowledge and conceptual
teams within health and safety, process risk how, to share findings across sites, thereby understanding of process-safety theory and
management, environment, security, and maximizing the learning benefits of such findings. principles. As students reach the proficient level,
product stewardship. they gain more in-depth knowledge of industrial
We are revising our KPIs for EHSS, looking not only at hazards and independently perform fundamental
lagging EHSS indicators, but also leading indicators, and routine process-safety related tasks at affiliates.
KEY PERFORMANCE INDICATORS to better monitor our performance and prioritize
improvement opportunities. SABIC engineers passing the advanced level will have
To continuously improve EHSS performance, we
the ability to apply creative solutions to complex
monitor a set of key performance indicators (KPIs)
process-safety-related problems and achieve
across our facilities. Since 2005, our EHSS rate RESPONSIBLE CARE ® recognition as subject matter experts in process-
(Safety, Security, Health and Environmental Incident
All SABIC and affiliates’ manufacturing sites safety management, hazard identification and risk
Rate) has improved by 86 percent and our injury
maintain Responsible Care® RC14001:2013 assessment, or process safety design engineering.
Total Incidence rate by 72 percent.
certification. This year, all have undergone audits
As of this year, 46 SABIC process safety and process
Such improvements are, however, placed in with a view to gaining the new RC 14001:2015 Above: SABIC’s safe practices are backed by emergency
engineers have completed or are enrolled in the
perspective by a fatality at one of our facilities due standard, expected in early 2018. response systems for coping with any eventualities.
60 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 61
ENVIRONMENT, HEALTH,
SAFETY AND SECURITY
continued
developing level of this extensive program. manage IT threats. In addition, SABIC conducted –– Improvement of risk identification for new –– ExxonMobil’s “Global Operations SHE Excellence
The proficient level detailed design and development widespread training in crisis management and products and processes by designing a cross- Award,” “Responsible Care Award” and “Global
will be completed and launched in mid-2019. emergency response and emergency drills to assess functional EHSS review of research and Operations Excellence Award” for Yanpet, a
and improve readiness for potential incidents. development projects, with implementation SABIC/Mobil Yanbu Petrochemical Company
2025 EHSS strategy goals includes other initiatives
scheduled for early 2018. joint venture.
and programs to enhance the process safety.
–– Development of analytical methodology to –– “AICM Responsible Care® Chairman Award”
They include: SECURITY RISK MANAGEMENT
characterize non-intentionally added substances in recognition of the company’s leadership,
This year, SABIC implemented a number of security
–– Improving risk discovery, controls and (NIAS) in food contact materials where no innovation and contribution to China’s chemical
improvement programs to proactively identify,
stewardship – SABIC Assurance for EHSS Risk harmonized system exists. industry and people – our third consecutive
assess, and mitigate security risks, including:
(SAFER) is a process that aims to identify and –– Piloting of Product Stewardship incident reporting award, following “Responsible Care® Merit
assess risks and devise interim and mitigating –– Harmonized global travel-security programs throughout manufacturing, with continued rollout Awards” in 2013 and 2015.
actions to eliminate and reduce them. In order to for all SABIC travelers. to business units and corporate functions set –– “Tianjin Municipal Level Top 100 Work Group”
ensure proper implementation of SAFER and other –– Competency programs for security staff for 2018. award to SINOPEC SABIC Tianjin Petrochemical
critical process safety procedures, SABIC has and new employees, and a training program Company for its safety record since 2010.
developed a four-tiered set of leading and for security supervisors. –– Two energy efficiency awards from the American
GLOBAL EHSS AWARDS
lagging indicators in line with API 754 –– Implementation of a canine security service Chemistry Council for SABIC’s Selkirk, New York,
2017 awards at affiliate sites for positive EHSS
recommended practice. in a number of affiliates. site for “Significant Improvement in
performance include:
–– Developing and improving risk-management –– Improved security awareness training for security Manufacturing.”
methods – SABIC EHSS Event Evaluation Risk teams at many sites. –– A safety award from the Ministry of Labor and –– “ACC Energy Efficiency Award” in the “Energy
Assessment (SEERA), currently being conducted –– Compliance audits at Saudi Arabian affiliates to Social Development for our Ibn Sina affiliate. Efficiency Program, Plant Site” category for
at selected sites, aims to improve our learning assess and improve compliance with new 2017 –– Recognition from Worldsteel (The World Steel SABIC’s Bay St. Louis, Mississippi, site.
from potentially significant near miss events. As HCIS directives. Association) in “Process Safety Management –– 2017 IChemE Global Awards Finalist in “Process
per our current plan, we will pilot globally this year –– Completion of security code requirements implementation” for Hadeed. Safety Award” category for Kemya.
before committing to full implementation. for Responsible Care recertification.
–– Implementing a facility siting program – 31 –– Establishment of Jubail Chapter of ASIS
process engineers were trained in facility software International, a global association of security
and modeling and facility siting assessment to professionals, to build relationships, exchange
improve EHSS risk identification and mitigation ideas, and share insights and best practices,
and enhance internal capabilities and locally and globally.
competencies in process-risk management. Staff –– Completion of a global security risk assessmen
at 10 sites were trained in 2017, with the remainder to identify, prioritize and address security
to be completed in 2018. risks to personnel, assets, and operations.
–– Updating and revising of information security
EMERGENCY RESPONSE standards to better protect sensitive information
in a dynamic threat environment.
AND CRISIS MANAGEMENT
–– Development and rollout of a program for arming
SABIC’s crisis and emergency management
security guards at Saudi Arabian facilities,
program is designed to promote effective crisis
including selection, testing and training.
management and emergency response at local,
–– Successful initiation of an e-security and
regional and global levels.
government relations system.
In August and September 2017, SABIC responded to
Hurricane Harvey, providing resources and support
PRODUCT STEWARDSHIP
and ensuring business continuity at SABIC-affected
2017 was a year of execution and re-evaluation
locations. Key activities included activation of
in our Product Stewardship program, with:
SABIC’s existing Houston Area Severe Weather
Emergency Response Plan, precautionary safe –– A Responsible Care value chain pilot for American
shut-down of the SABIC Technology Center in methanol and styrene customers.
Houston, and the creation of crisis management –– Completion of an additional 15 risk
sub-teams for emergency response, humanitarian characterizations of SABIC’s top 50 high priority
support, communications and business continuity. chemicals, bringing the total to 25.
Above: SABIC’s crisis and emergency management program is designed to promote effective crisis
This year, SABIC conducted a number of cyber- management and emergency response at local, regional and global levels.
incident exercises to help ensure it is fully prepared to
62 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 63
MANUFACTURING
70% 37
provides all SABIC affiliates and sites with a a number of other potential synergies with
insights that can enhance energy systems, resulting
consistent framework for asset management neighboring companies under evaluation.
in improved energy performance.
to ensure integrity and reliability throughout
any asset’s full life-cycle, from design through Below: SABIC pursues up-to-date technologies and SABIC Manufacturing embarked on a process
decommissioning. technical solutions at its manufacturing sites. for optimal global utilization of its expertise and
know-how, through the integration of technical
Effective asset management helps achieve full support, networking, and knowledge management
realization of the value of assets, and effective in one seamless platform. To achieve this, Regional
exploitation of their potential contribution to the Asset Support (RAS) is tasked with unlocking
successful achievement of business goals, knowledge and leveraging this large volume of
objectives, and value drivers. expertise to drive technical support through
Successful implementation of the AIR program is effective networks. This effort will retain knowledge
expected to deliver improved EHSS and operational for future generations, improve our innovative
performance and reduced operational risk thanks capabilities, and ultimately develop SABIC’s
to improved reliability and asset health – and the performance as a learning organization.
implementation of appropriate asset life-cycle This process has so far been successfully implemented
management strategies. across four regions, with 108 technical issues resolved.
A community forum was introduced, to unite the wider
ASSET AGING ASSESSMENT manufacturing community in sharing technical
information and managing our knowledge content.
SABIC Manufacturing’s Asset Aging Assessment
(AAA) program aims to ensure that risks incurred
by asset-aging or obsolescence are identified ACTIVE ENGAGEMENT, IMTYAZ+
and mitigated. The first phase of the manufacturing
The AAA program saw all manufacturing sites transformational journey not only included
intensively engaged with the AAA Global organizational evolution but also the deployment of
Deployment Team. Completion of the first phase the manufacturing management system, IMTYAZ.
of this initiative was scheduled for the end of Having standardized organizational structures,
November 2017; the program is planned to safely processes, stewardship models, performance
and cost-effectively help manage asset performance metrics, and leadership behaviors in 2016, our focus
and associated risks during its remaining life. SABIC’s 2016 Sustainability Report was recognized business units, and regional manufacturing this year was to ensure correct use of the
for effective data management and effective use of performance and operational support. management system by embarking on an active-
key performance indicators by the World Business engagement approach, IMTYAZ+, delivered through
ENERGY AND SUSTAINABILITY In 2017, methanol and styrene benchmarks were
Council for Sustainable Development. coaching and experiential learning. This approach
With its focus on culture, systems and tools, SABIC undertaken with global peer groups. At the same
identified areas of good implementation that should
Manufacturing launched its own Certified Energy time, internal assessment of high-volume product
BENCHMARKING be more effectively leveraged, and others of
Expert Course (SCEE), aiming to develop key families including olefins, ethylene glycols,
opportunity that needed to be addressed, in order
personnel and build a network of in-house energy We periodically compare its manufacturing methanol, polyolefins, ammonia and urea were
to maximize impact on operational-risk reductions,
and sustainability expertise. Thirty-seven people performance against industrial peers at regional conducted, building internal manufacturing
production increases, and cost efficiencies.
qualified as SABIC Certified Energy Experts and global levels. Over the last five years, more than capabilities. As an outcome of these comparative
during 2017. 70 percent of SABIC’s global production has been studies, improvement initiatives were generated, Our next steps will be to engage in further
benchmarked. with the objective of ensuring first-quartile integration, to ensure direct impact of initiatives
performance in the operation and maintenance on our strategic objectives in line with SABIC’s
The exercise involves teams comprising members
of all assets. 2025 strategy and our journey toward optimized
from affiliate operations, maintenance, human
performance-based manufacturing excellence.
resources, finance, global asset technology center,
64 SABIC
ANNUAL REPORT 2017 OUR COMMITMENT 65
SUPPLY CHAIN
SUSTAINABILITY
SABIC recognizes sustainability as not just an ethical issue but Left: SABIC’s sustainability
initiatives include operational
a business imperative, enabling our company to be more agile, excellence, new technologies,
and efficiency projects.
dynamic, and better prepared for the future.
We look to incorporate sustainability into every INNOVATION FOR SUSTAINABILITY NEW SUSTAINABILITY
facet of our organization, and look to ensure that This year, SABIC is working on innovations beyond SOLUTIONS
our business strategies and sustainability new materials, and launched several disruptive QUALIFIED
aspirations are always aligned. material solutions such as THERMOCOMP™ Additive
This year, we will be issuing our seventh Sustainability
Report. SABIC has been recognized as a leader in
Manufacturing compounds based on acrylonitrile-
butadiene-styrene (ABS), polyphenylene ether
(PPE), polycarbonate (PC) and polyetherimide (PEI)
4
global sustainability reporting by the World
Business Council for Sustainable Development resins for large-format additive manufacturing that
– a testament to the success of our integrated can produce oversized complex parts with speed
PROJECTS FOR
strategy for responsible business and growth. and precision by optimizing material use and
SUSTAINABILITY
improving process efficiency.
BENEFITS IDENTIFIED
80+
NATURAL CAPITAL Drawing on our extensive expertise in material
By integrating resource and energy efficiency into chemistries, formulations, production, and part-
our strategy, company culture, and operations, SABIC printing, SABIC pushes the limits of design,
protects natural capital for future generations. materials, and processing – just as we have done
with traditional polymer processes over past
We continue to build on our initiatives targeting decades – to bring unique offerings to the additive-
four sustainability goals by 2025: reducing manufacturing space. Over the last year we have relationships, while delivering and performing LOOKING FORWARD
greenhouse-gas, energy, and water intensities, qualified four new sustainability solutions in our for customers and stakeholders. It provides a In 2018, SABIC will support our business results
all by 25 percent, and material-loss intensity by 50 product portfolio, and verified more than 80 meaningful framework for leaders to develop through continued progress toward our 2025
percent, all from 2010 levels. Such reductions not innovation projects for sustainability benefits themselves and their teams, highlighting four energy-and-resource-efficiency goals, exploration
only reduce our products’ life-cycle impacts; they and risks. priorities that SABIC leaders should strive to of alternative feedstocks, continued development of
also improve our operational efficiency, and bear achieve: being a talent champion, a collaboration key-personnel competencies, and improved talent
down on operating costs. partner, an innovation pioneer, and an selection and retention. Completion of our portfolio
LEADERSHIP WAY excellence driver.
Our initiatives include operational excellence, of sustainability-assessment pilots will identify
We launched the SABIC Leadership Way in 2017 to
new technologies, and efficiency projects. SABIC SABIC is developing tailored training and sustainable-product opportunities in key markets.
help achieve our 2025 vision for talent development
monitors and evaluates the performance of our and organizational culture. development programs for its employees. Our Another initiative in 2018 will be a refresh of our
affiliates, and engages employees across the personalized performance system offers employees materiality analysis. This process includes a review
organization to raise awareness, offer and benefit The Leadership Way is guided by the principles clear feedback with recommended development of global sustainability megatrends – including the
from training, share best practices, and inspire new of long-term dependability and building valuable actions, and provides over 6,000 classrooms and United Nations’ Sustainable Development Goals
ideas. We invest in quick-hit, small-scale solutions; online courses to support employee learning at (SDGs), the Paris Agreement, and Saudi Arabia’s
larger and longer-term actions; and global every professional level. At the SABIC Academy, Vision 2030 – helping us develop a master list of
operational changes, bringing transformational employees learn through an integrated talent- material issues to evaluate against our business
Below: SABIC is working on innovations
resource-and-energy-efficiency gains. beyond new materials, and has launched development process, with assessment, coaching, and stakeholder needs. Through this process, we
several innovative material solutions. experiential learning, and formal classroom training. will engage externally with key stakeholders and
SABIC’s Manufacturing corporate function has
started the SABIC Certified Energy Expert Course, This work has earned SABIC the Top Employer internally with leaders to ensure our focus is on
with a view to building a network of energy- Institute certifications, “Top Employees Asia Pacific issues of the highest priority to both groups. The
efficiency experts. Manufacturing also leads 2018” and “Top Employers 2018,” in five of its key results of this assessment will be incorporated into
sustainability and opportunity assessments of Asian markets – China, India, Japan, Singapore, and our sustainability strategy over the coming year and
megaprojects during the gating process to ensure South Korea – for five or more consecutive years. published in our next Sustainability Report.
that such projects are best-in-class in terms of their These certifications recognize the company’s SDGs provide a framework to match important
energy and sustainability performance. SABIC’s constant efforts in nurturing an inclusive growth areas for society with our business goals,
Jubail-based manufacturing affiliate, Al-Bayroni, environment that encourages innovation, excellence, helping us to develop more resilient business
has become the first entity in Saudi Arabia to and organizational effectiveness, with a strong solutions. In 2018, we will select those that
achieve United Nations carbon credits under the focus on employee development. best fit our priorities. The identified SDGs will be
Clean Development Mechanism (CDM) scheme. incorporated into our strategic objectives through
a wide range of measures, including messaging,
targets, and partnership and initiative selection.
68 SABIC
ANNUAL REPORT 2017 69
DIRECTORY
MANUFACTURING COMPANIES 70
GLOBAL DIRECTORY 74
70 SABIC
ANNUAL REPORT 2017 DIRECTORY 71
MANUFACTURING
Petrochemicals
Agri-Nutrients
COMPANIES
Specialties
Metals*
Alba Bahrain SABIC Industrial Investments Aluminum (liquid metal, ingots, Ibn Zahr Al-Jubail, SABIC (80%), Ecofuel-Italy (10%), MTBE and polypropylene
Aluminium Bahrain** Company (20.62%), Bahrain rolling slabs, and billet) Saudi European Saudi Arabia Arab Petroleum Investment
Mumtalakat Holding Company Petrochemical Corporation APICORP (10%)
(69.38%), others/public (10%) Company
Al-Bayroni Al-Jubail, A 50/50 SABIC joint-venture Ammonia, urea, 2-ethyl hexanol, Kemya Al-Jubail, A 50/50 SABIC joint-venture Polyethylene (LDPE, LLDPE),
Al-Jubail Fertilizer Saudi Arabia with Taiwan Fertilizer Company and DOP Al-Jubail Saudi Arabia with Exxon Chemical Arabia ethylene, carbon black (CB),
Company Petrochemical polybutadiene rubber (PBR),
Company styrene butadiene rubber
Ar-Razi Al Jubail, A 50/50 joint venture Chemical-grade methanol (SBR), ethylene propylene diene
Saudi Methanol Saudi Arabia with Japan Saudi Arabia monomer (EPDM), regular butyl
Ccompany Methanol Company (RB) and halo butyl (HB)
Cos-Mar Company Caville, A 50/50 joint venture Styrene Ma’aden Phosphate Riyadh, SABIC (30%) and Ma’aden (70%) DAP, MAP, NPS
Louisiana, USA with Total Company Saudi Arabia
GARMCO Bahrain SABIC (30.40%), Bahrain Aluminum sheets and can stocks Ma’aden Wa’ad Riyadh, SABIC (15%), Mosaic (25%), and DAP, MAP, NPS, NPK
Gulf Aluminum Rolling Mumtalakat Holding Company Al-Shamal Phosphate Saudi Arabia Ma’aden (60%)
Mill Company** (37.29%), Iraq (4.71%), Oman Company
(2.36%), Qatar Holding Company
(2.36%), Kuwait Investment Petrokemya Al-Jubail, A wholly owned affiliate Ethylene, polystyrene, butene-1,
Authority (16.98%), Gulf Arabian Petrochemical Saudi Arabia of SABIC propylene, butadiene, benzene,
Investment Corporation (5.90%) Company polyethylene, VCM, S-PVC,
and ABS
Gas Al-Jubail, SABIC (70%) and a group of Oxygen, nitrogen and argon
National Industrial Saudi Arabia Saudi Arabian private-sector (Al-Jubail); oxygen and nitrogen Sadaf Al-Jubail, A wholly owned affiliate of SABIC Ethylene, styrene, caustic soda,
Gases Company (head office); companies (30%) (Yanbu) Saudi Petrochemical Saudi Arabia ethylene dichloride, and MTBE
Yanbu, Company
Saudi Arabia
(branch) SAFCO Al-Jubail, SABIC (42.99%), GOSI (12.24%), Ammonia, urea, and urea
Saudi Arabian Saudi Arabia public investors (44.77%) formaldehyde
GPIC Bahrain Joint-venture with equal Methanol, ammonia, and urea Fertilizer Company
Gulf Petrochemical partnership for the Petrochemical
Industries Company** Industries Company of Kuwait, SABIC Innovative Bay St. Louis, A wholly owned affiliate CYCOLAC™, CYCOLOY™,
State of Bahrain, and SABIC Plastics US LLC Mississippi, of SABIC and GELOY™ resins
USA
Hadeed Al-Jubail, A wholly owned affiliate Steel rebar, wire rod, hot-rolled
Saudi Iron and Saudi Arabia of SABIC coils, cold-rolled coils, galvanized SABIC Innovative Bergen op Zoom, A wholly owned affiliate LEXAN™, XENOY™, NORYL™,
Steel Company coil, and flat-steel products Plastics B.V. Netherlands of SABIC NORYL™ GTX™ and VALOX™
resins; LEXAN™ sheet, and film
Ibn Al-Baytar Al-Jubail, A 50/50 SABIC joint-venture Ammonia, urea, compound
National Chemical Saudi Arabia with SAFCO fertilizer, phosphate, and SABIC Innovative Burkville, A wholly owned affiliate LEXAN™ resin
Fertilizer Company liquid fertilizer Plastics US LLC Alabama, USA of SABIC
Ibn Rushd Yanbu, SABIC (45.19%), PIF (33.51%), and Aromatics (paraxylene and SABIC Innovative Cartagena, Spain A wholly owned affiliate LEXAN™, EXTEM™, ULTEM™,
Arabian Industrial Saudi Arabia a group of Saudi Arabian and benzene), purified terephthalic Plastics España of SABIC and CYCOLOY™ resins
Fibers Company regional private shareholders acid (PTA), bottle-grade chips, ScpA
(21.3%) PET, and acetic acid
SABIC Innovative Mt. Vernon, A wholly owned affiliate LEXAN™, CYCOLOY™, ULTEM™,
Ibn Sina Al-Jubail, A 50-50 joint venture with CTE Chemical-grade methanol, MTBE, Plastics Mt. Vernon Indiana, USA of SABIC VALOX™, XENOY™, XYLEX™,
National Methanol Saudi Arabia (a company jointly owned by and polyoxymethylene SUPEC™, and SILTEM™ resins,
Company subsidiaries of Celanese and LEXAN™ sheet and film, and
Duke Energy) ILLUNINEX™ display film
MANUFACTURING
Petrochemicals
Agri-Nutrients
COMPANIES continued
Specialties
Metals*
SABIC Innovative Selkirk, A wholly owned affiliate PPO resin, NORYL , NORYL PPX
™ ® ®
Sharq Al-Jubail, A 50/50 SABIC joint-venture with Ethylene, propylene, aromatics
Plastics US LLC New York, USA of SABIC and NORYL GTX® resins, and Eastern Saudi Arabia SPDC Ltd (BTX), ethylene glycol (mono,
high-impact polystyrene (HIPS) Petrochemical di, tri), linear low-density
Company polyethylene (LLDPE), and high-
SABIC Geleen, A wholly owned affiliate Polyethylene (HDPE, LDPE, density polyethylene (HDPE)
Petrochemicals B.V. Netherlands of SABIC LLDPE), polypropylene, ethylene,
propylene, butadiene, MTBE/ Shrouq** Al-Jubail, SABIC (50%), ASAHI Kasei Acrylonitrile, Sodium Cyanide
ETBE, benzene, gasoline Saudi Japanese Saudi Arabia Chemicals Corporation (30%),
components, styrene, C9 Acrylonitrile and Mitsubishi Corporation
resin feed, cracked distillate, Company (20%)
acetylene, hydrogen, and
carbon-black oil SOCC Al-Jubail, A 50/50 joint-venture between Tri-ethyl aluminum (TEAL)
Saudi Saudi Arabia Saudi Specialty Chemicals
Geismar Olefins Geismar, SABIC Petrochemicals Holding Ethylene Organometallic Company and Albemarle
Plant. Louisiana, USA US, Inc (11.54%) and NOVA Netherlands BV
Chemicals Company
(81.46%)
Specialty Chem Al-Jubail, Wholly owned affiliate of TPO/PP compounds, ETP/PC
SABIC UK Teesside, A wholly owned affiliate Ethylene, propylene,
Saudi Specialty Saudi Arabia SABIC (Arabian Petrochemical compounds, PC/ABS compounds,
Petrochemicals Ltd UK of SABIC benzene cyclohexane, cracked
Chemicals Company Company – Petrokemya, 99%, and specialty products
distillate hydrogen, butadiene,
and SABIC Industrial Investments
polyethylene (LDPE)
Company 1%)
SABIC Polyolefine Gelsenkirchen, A wholly owned affiliate Polyethylenes (HDPE, LLDPE)
SSNC Ulsan, South A 50/50 joint venture between Metallocene linear low density
GmbH Germany of SABIC and polypropylene
SABIC SK Nexlene Korea SABIC Industrial Investments polyethylene (mLLDPE),
Company Corporate Company and SK Global polyolefin plastomers (POP),
headquarters: Chemicals polyolefin elastomers (POE)
SAMAC Al-Jubail, A 50/50 joint venture with Methyl Methacrylate (MMA),
Singapore
Saudi Saudi Arabia Mitsubishi Chemical polymethylmethacrylate (PMMA)
Methyl Acrylate Corporation
United Al-Jubail, SABIC (75%), Public Pension Ethylene, polyethylene, ethylene
Company Jubail United Saudi Arabia Agency (15%), General glycol (EG), and linear-alpha
Petrochemical Organization for Social olefins (LAO)
SSTPC Tianjin, China A 50/50 joint-venture between Ethylene, propylene, Insurance (10%)
Company
SINOPEC SABIC SABIC Industrial Investments polyethylene (HDPE, LLDPE),
Tianjin Petrochemical Company and SINOPEC polypropylene, ethylene oxide,
Yanpet Yanbu, A 50/50 SABIC joint-venture Ethylene, polyethylene,
Co. Ltd. (China Petroleum & Chemical MEG, DEG, phenol, acetone,
Saudi Yanbu Saudi Arabia with Mobil Yanbu Petrochemical ethylene glycol, polypropylene,
Corporation) MTBE, butadiene, and butene-1
Petrochemical Company (an affiliate of pyrolysis gasoline, propylene,
Company ExxonMobil Chemical, USA) and hydrogen
Saudi Kayan Al-Jubail, SABIC (35%), Ethylene, propylene,
Saudi Kayan Saudi Arabia public shareholders (65%) polypropylene, LDPE,
Yansab Yanbu, SABIC (51%) and public Ethylene, propylene, ethylene
Petrochemical HDPE, ethylene glycol,
Yanbu National Saudi Arabia shareholders or owned by glycol (mono, di, tri), linear
Company acetone, polycarbonate others (49%) low-density polyethylene
Petrochemical
(PC), ethanolamines (EOA), (LLDPE), high-density
ethoxylates, bisphenol A,
Company
polyethylene (HDPE),
benzene, normal butanol, and polypropylene, butane-1,
natural-detergent alcohol (NDA) benzene, toluene/xylene mixture,
and MTBE
This list includes all manufacturing affiliates (with the exception of compounding facilities), as wholly owned
by SABIC or to which SABIC is partner. It includes each affiliate’s location, types of products produced, and if *Metals products are supplied under the SABIC brand through Hadeed, a fully owned manufacturing affiliate of the company.
not wholly owned, the percentage owned by SABIC in such affiliate. A full list comprising the total SABIC group
** During the year ended 31 December, 2017, SABIC acquired 30 percent of the non-controlling interests in Shrouq. Legal formalities
holdings worldwide is available on: http://www.sabic.com/corporate/en/ourcompany/manufacturing- for the acquisition of the remaining 20 percent of the non-controlling interests have been completed subsequent to the year ended
affiliates/sabic-manufacturing-affiliates. December 31, 2017.
74 SABIC
ANNUAL REPORT 2017 DIRECTORY 75
GLOBAL DIRECTORY
SABIC Innovative Plastics SABIC Innovative Plastics GREECE SABIC India Pvt. Ltd. INDONESIA IRELAND
Denmark ApS France SAS SABIC Greece MEPE & SABIC Innovative Plastics SABIC Asia Pacific Pte. Ltd. SABIC UK Limited
Kogle Allé 2 22, Place des Vosges Cosmos Offices India Private Limited Indonesia Stock Exchange Papermill Drive
DK-2970 Hørsholm, Denmark La Défense 5 Agiou Georgiou 5 B5, Plot No. 81-85 Building Redditch
T: +45 4582 8245 Immeuble le Monge Patriarchiko Pylea Chikkadunnasandra Village Suite 1702, Tower 1, Level 17 Worcestershire
F: +45 4582 0103 92979 Paris La Défense Cedex, Thessaloniki, Greece 55535 Anekal Taluk Jalan Jend B98 8QJ, UK
France T: +30 231 308 0310 Off Sarjapura-Attibele Sudirman Kav. No. 52 – 53 T: +44 (0)15 275 90570
EGYPT T: +33 (0)1 41 97 82 56 State Highway
F: +30 231 308 0319 Jakarta 12190, Indonesia F: +44 (0)15 275 90577
SABIC Africa F: +33 (0)1 41 97 82 53 Near St. Philomena School T: +62 215 140 0055
47th Building, 3rd floor HUNGARY Bengaluru – 562125, India F: +62 215 140 0077 JAPAN
P.O. Box 11835, City Center GEORGIA SABIC Hungary Kft T: +91 80 6772 5000 SABIC Japan LLC
New Cairo, Egypt SABIC Turkey Duna Tower Office Building SABIC Innovative Plastics Tokyo Office
T: + 2 022 249 1910 SABIC Petrokimya Tic. LTS STI Népfürdó u. 22 SABIC India Pvt. Ltd. & SABIC (SEA) Pte. Ltd Tokyo Club Building
F: + 2 022 537 01 17 / 21 Plastikleri San. Tic.A.S. B building, 10th floor Innovative Plastics India Indonesia Representative Office Kasumigaseki 3-2-6
Saray Mah. Dr. Adnan 1138 Budapest, Hungary Private Limited Indonesia Stock Exchange Chiyoda-ku
ESTONIA Buyukdeniz Cad 9C, Ega Trade Center Building
T: +48 224 323 737 Tokyo, 100-0013
LLC SABIC Eastern Europe Akkom Ofis Park Cessas Poonamalle High Road Suite 1702, Tower 1, Level 17
F: +48 224 323 740 Japan
Kosmodamianskaya Plaza B Block 20 – 21 Floor Kilpauk, Chennai – 600010, Jalan Jend T: +81 3 3593 4700
Naberezhnaya 52, Bld 1 SABIC Innovative Plastics India Sudirman Kav. No. 52 – 53
Umraniye Istanbul, F: +81 3 3593 4709
115054, Moscow, Russia Kereskedelmi Kft T: +91 44 4902 5600 Jakarta 12190, Indonesia
Turkey
T: +7 985 766 69 14 Duna Tower, Népfürdõ u. 22 F: +91 44 4902 5611 T: +62 215 150 150 SABIC Japan LLC
T: +90 21 66 365 000
+7 495 287 92 03 B Building, 10th Floor (Japan Technology Center)
F: +90 21 66 365 050
E: salescisbaltics@sabic.com 1138 Budapest, Hungary SABIC Innovative Plastics ITALY 2–2 Kinugaoka, Moka
GERMANY T: +36 188 933 36 India Private Limited SABIC Italia S.R.L. Tochigi 321–4392,
ETHIOPIA SABIC Deutschland GmbH +36 188 933 37 Office No 428 Regus Via Simone Schiaffino 11/19 Japan
SABIC Ethiopia Ernst- Gnoss-Str. 24 Business Centre 20158 Milano, Italy
F: +36 188 933 38
Kirkos Sub city, Wereda 8 house 4th Floor Prabhavee Tech Park SABIC Japan LLC
40219 Dusseldorf T: +39 02 859741
No. 241 Kebele, Guinea Conakry ICELAND Baner, Pune – 411045 Moka Plant
Postfach 104865 F: +39 02 86465472
Street, 6th Floor SABIC Nordic A/S T: +91 020 67235829 2–2 Kinugaoka, Moka Tochigi
40039 Dusseldorf,
Addis Ababa, Ethiopia Kogle Allé 2 SABIC Sales Italy S.R.L. 321–4392, Japan
Germany SABIC Innovative Plastics India
T: +251 115 571378 DK-2970 Hørsholm Via Simone Schiaffino 11/19 T: +81 285 80 2318
T: +49 211 171 400 Private Limited
+251 115 571446 Denmark 20158 Milano, Italy F: +81 285 80 2323
F: +49 211 171 401 01 Plastics Avenue P.O. Jawahar
F: +251 115 571449 T: +45 33 32 49 18 T: +39 02 3771351
SABIC Polyolefine GmbH Nagar F: +39 02 37713533 KAZAKHSTAN
FINLAND Pawikerstr. 30 INDIA Vadodara 391320, Gujarat, SABIC Dubai
SABIC Nordic A/S SABIC India Pvt. Ltd. & SABIC India SABIC Innovative Plastics PO Box 25892
45896 Gelsenkirchen,
Kogle Allé 2 Innovative Plastics T: +91 265 3068551 Italy S.R.L. Dubai, UAE
Germany
DK-2970 Hørsholm, 10th Floor, Ambience Corporate F: +91 265 3068552 Via Simone Schiaffino 11/19 T: +971 44 355 888
T: +49 209 933 91
Denmark Towers II 20158 Milano, Italy F: +971 44 230 810
F: +49 209 933 920 0 SABIC India Private Limited
T: +45 4582 8245 Ambience Island, Gurugram – T: +39 02 3771351
E: gelsenkirchen@sabic.com (Nepal Liaison Office) KENYA
F: +45 4582 0103 122001 F: +39 02 37713533
SABIC Innovative 1st Floor, Maitidevi Complex, SABIC Kenya
Haryana, India SABIC Innovative Plastics
SABIC Innovative Plastics Plastics GmbH Maitidevi-32, Pacis Center, 4th Floor,
T: +91 124 4746191 Italy S.R.L.
Finland OY SABIC Innovative Plastics Kathmandu Nepal Waiyaki Way, Westlands,
F: +91 124 4029190 Via Ca Trevigliou
Italahdenkatu 22B Holding Germany GmbH T: +97 71 5592 491 P.O Box 14819 – 00800
00210 Helsinki, Finland SABIC India Pvt. Ltd. F: +97 75 5913 84 24040 Pontirdo Nuovo (B6), Nairobi, Kenya
T: +35 896 211 010 Ernst-Gnoss-Str. 24 & SABIC Innovative Plastics Italy T: +254 20 294 4000
40219 Dusseldorf SABIC India Pvt. Ltd. T: +39 03 63330772 F: +254 20 294 4111
India Private Limited
FRANCE Postfach 104865 781 Solitaire Corporate Park
(Sri Lanka) F: +39 03 63330201
SABIC France SAS 40039 Dusseldorf, Andheri Ghatkopar Link Road
(Liaison Office) KOREA
122, Fatima Road SABIC Innovative Plastics SABIC Korea Ltd.
22, Place des Vosges Germany Chakala, Andheri East
Kadana, Sri Lanka 11320 Italy S.R.L. Seoul HQ
La Défense 5 T: +49 211 171 400 Mumbai – 400093, India
T: +94 22 44780 Via San Francesco d’Assisi 11-13 20F, Donghoon Tower
Immeuble le Monge F: +49 211 171 401 01 T: +91 22 4248 1800
F: +94 22 32359 Olgiate Olona (VA), 317, Teheran-ro, Gangnam-gu
92979 Paris La Défense Cedex, F: +91 22 4248 1802 21507 Italy Seoul, 06151, South Korea
France
T: +39 0 331 349 911 T: +82 2 510 6000
T: +33 (0)1 41 97 83 00
F: + 39 0 331 349 921 F: +82 2 510 6666
F: +33 (0)1 41 97 83 01
78 SABIC
ANNUAL REPORT 2017 DIRECTORY 79
SABIC Korea Ltd. LITHUANIA MONTENEGRO SABIC Innovative Plastics B.V. PORTUGAL Al-Jubail Office
Korea Technology Center (KTC) LLC SABIC Eastern Europe SABIC Hungary Kft. SABIC Innovative Plastics SABIC Marketing Ibérica S.A. PO Box 10040, Al-Jubail 31961
1321, Seongnam-daero Kosmodamianskaya Duna Tower Office Building GP B.V. Edificio Euro-3, C/ Saudi Arabia
Sujeong-gu, Seongnam-si Naberezhnaya 52, Bld 1 Népfürdõ u. 22 SABIC Innovative Plastics Frederic Mompou 5, 4°– 4a T: +966 (013) 347 7200
Gyeonggi, 13109, 115054, Moscow, Russia B Building, 10th Floor Holding B.V. 08960 Sant Just Desvern F: +966 (013) 347 0400
South Korea T: +7 985 766 69 14 1138 Budapest, Hungary SABIC Global Technologies B.V. Barcelona, Spain
Sabtank SABIC Terminal
T: +82 31 778 5000 +7 495 287 92 03 T: +36 188 933 36 SABIC Licensing B.V. T: +34 934 703 060
Services Co.
F: +82 31 778 5102 E: salescisbaltics@sabic.com +36 188 933 37 Plasticslaan 1 F: +34 934 736 436
PO Box 10135, Al-Jubail 31961
F: +36 188 933 38 4612 PX Bergen op Zoom,
SABIC Korea Ltd. MACEDONIA ROMANIA Saudi Arabia
The Netherlands
Chungju Plant SABIC Greece MEPE MOROCCO SABIC Hungary Kft. T: +966 (013) 345 3646
T: +31 164 292 911
488, Gugwon-daero, Cosmos Offices SABIC Morocco Duna Tower Office Building F: +966 (013) 357 5470
F: +31 164 292 940
Chungju-si Agiou Georgiou 5 23, Rue Bani Ritoune Népfürdó u. 22 Yanbu Office
Chungcheongbuk-do Patriarchiko Pylea Km 4.2 Avenue, Mohammed 6 B.V. Snij-Unie Hi-Fi B building, 10 floor, 1138 P.O. Box 31656, Yanbu 41912
27324, South Korea Thessaloniki, Greece 55535 Hay Souissi, Rabat, Morocco Zoutketen 23 Budapest, Hungary Saudi Arabia
T: +82 43 850 8111 T: +30 231 308 0310 T: +212 530 104 554 1601EX Enkhuizen, T: +36 188 933 36 T: +966 (014) 396 5440
F: +82 43 850 8050 F: +30 231 308 0319 F: +212 537 751 705 The Netherlands +36 188 933 37 F: +966 (014) 396 5332
T: +31 228 317 944 F: +36 188 933 38
Korea Nexlene Company MALAYSIA THE NETHERLANDS F: +31 228 317 278 Ar-Razi Saudi Methanol Co.
Research & Development Centre SABIC Innovative Plastics SABIC Capital B.V. RUSSIA
E: enkhuizen@sabic.com PO Box 10065, Al-Jubail 31961
325 Expo-ro, Yuseong-gu (Malaysia) Sdn. Bhd World Trade Center LLC SABIC Eastern Europe Saudi Arabia
Daejeon 34124, South Korea Suite 3B-11-3, Level 11 Tower H, 27th floor NORWAY Kosmodamianskaya T: +966 (013) 357 7800
T: +82-42-866 7220 Block 3B, Plaza Sentral Zuidplein 216 SABIC Nordic A/S Naberezhnaya 52, Bld 1 F: +966 (013) 358 5552
F: +82-42-866-7215 Jalan Stesen Sentral 5 1077 XV Amsterdam, Kogle Allé 2 115054, Moscow, Russia E: arrazi@arrazi.sabic.com
KL Sental, 50470 The Netherlands DK-2970 Hørsholm, T: +7 985 766 69 14
Korea Nexlene Company
Kuala Lumpur, Malaysia T: +31 203 333 030 Denmark +7 495 287 92 03 Al-Bayroni Jubail Fertilizer Co.
Ulsan Plant
T: +60 322 746 198 F: +31 203 333 040 T: +45 33 32 49 18 E: salescisbaltics@sabic.com PO Box 10046, Al-Jubail 31961
1, Sapyeong-ro
F: +60 322 733 487 Saudi Arabia
Cheongryang-myeon SABIC Europe B.V. PAKISTAN SABIC Innovative Plastics T: +966 (013) 341 6488
Ulju-gun SABIC Pakistan Pvt Ltd Rus. OOO
MEXICO PO Box 5151 F: +966 (013) 341 7122
Ulsan, 44987, South Korea Europaboulevard 1 M-123 – 126, Mezzanine Floor Kosmodamianskaya
SABIC Innovative Plastics E: albayroni@albayroni.sabic.com
T: +82 52 208 4200 6135 LD Sittard, Business Arcade Mövenpick Naberezhnaya 52 – Bld 4
Paseo de la Reforma, 2620
F: +82 52 208 4809 The Netherlands Mövenpick Hotel, Club Road 115054 Moscow, Russia Gas National Industrial
Lomas Altas, Miguel Hildago
11950 T: +31 467 222 222 Karachi-75530, Pakistan T: +7 495 287 92 03 Gases Co.
LATVIA
Ciudad de Mexico, Mexico F: +31 467 220 000 T: +92 21 3563 3229 – 31 F: +7 495 287 92 02 PO Box 10110, Al-Jubail 31961
LLC SABIC Eastern Europe
T: +51 (55) 1105-6700 E: info@sabic.com Saudi Arabia
Kosmodamianskaya PHILIPPINES
M: +51 (55) 1105-6799
SAUDI ARABIA T: +966 (013) 357 5738
Naberezhnaya 52, Bld 1 SABIC Sales Europe B.V. SABIC Asia Pacific Pte Ltd Saudi Basic Industries F: +966 (013) 358 8880
115054, Moscow, Russia San Luis Potosi Plant P.O. Box 5151 Philippines Representative Corporation (HQ) E: hussainaa@gas.sabic.com
T: +7 985 766 69 14 Avenida Circuito Mexico No. 170 Europaboulevard 1 Office PO Box 5101, Riyadh 11422
+7 495 287 92 03 Parque Industrial Tres Naciones 6130 PD Sittard, 18th Floor, Philamlife Tower Hadeed Saudi Iron & Steel Co.
Saudi Arabia
E: salescisbaltics@sabic.com San Luis Potosi 78395 The Netherlands 8767 Paseo de Roxas PO Box 10053, Al-Jubail 31961
T: +966 (011) 225 8000
San Luis Potosi, Mexico T: +31 467 222 222 Makati City 1226, Saudi Arabia
LEBANON F: +966 (011) 225 9000
F: + 31 467 220 000 Philippines T: +966 (013) 357 1100
SABIC LLC Lebanon E: info@sabic.com
Tampico Plant E: sales.benelux@sabic.com T: +63 9175298791 F: +966 (013) 358 5000
Mina El Hosn, Park Avenue, Boulevard de los Rios km 4.8 Dammam Office
Berytus Parks Bldg 1344 Puerto Industrial Altamira SABIC Europe Manufacturing POLAND Ibn Al-Baytar National
PO Box 2629,
5th Floor Altamira 89608 PO Box 475 SABIC Poland Sp zo.o Chemical Fertilizer Co.
Dammam 31461
Block B Ahmad Daouk Street Tamaulipas, Mexico 6160 AL Geleen, ul.17 Stycznia 45A PO Box 10283, Al-Jubail 31961
Saudi Arabia
P.O. Box 11– 2153, T: +51 (833) 229-2500 The Netherlands 02-146 Warsaw, Poland Saudi Arabia
T: +966 (013) 810 8444
Beirut 2011– 8403, Lebanon T: +31 464 767 000 T: +48 224 323 737 T: +966 (013) 341 1100
F: +51 (833) 229-2545 F: +966 (013) 810 8420
T: +96 119 734 44 Ext 4220 or 0 E: geleen@sabic.com F: +48 224 323 740 F: +966 (013) 341 1257
+966 (013) 810 8433
F: +96 119 728 65 MOLDAVA
SABIC Europe Research SABIC Innovative Plastics Ibn Rushd Arabian Industrial
E: slro1@sabic.com SABIC Poland Sp. z o.o. Jeddah Office
& Development Poland Sp. z.o.o. Fibers Co.
ul.17 Stycznia 45A PO Box 30204,
PO Box 319 17 Stycznia 45A PO Box 30701
02-146 Warsaw, Poland Jeddah 21477
6160 AH Geleen, 02-146 Warsaw, Poland Yanbu Industrial City 41912
T: +48 224 323 737 Saudi Arabia
The Netherlands T +48 224 323 722 Saudi Arabia
F: +48 224 323 740 T: +966 (012) 608 8888
T: +31 464 760 207 T: +966 (014) 321 8000
F +48 224 323 740 F: +966 (012) 608 8810
F: +31 464 760 503 F: +966 (014) 321 8008
80 SABIC
ANNUAL REPORT 2017 DIRECTORY 81
Ibn Sina National Methanol Co. SOCC Saudi Organometallic Technology & Innovation SLOVENIA SWITZERLAND TURKMENISTAN
PO Box 10003, Al-Jubail 31961, Chemicals Company PO Box 42503, Riyadh 11551, SABIC Hungary Kft. SABIC Deutschland GmbH SABIC Dubai
Saudi Arabia PO Box 11241 Saudi Arabia Duna Tower Office Building Ernst-Gnoss-Str. 24 PO Box 25892
T: +966 (013) 340 5500 Al-Jubail 31961, T: +966 (011) 499 9333 Népfürdõ u. 22 40219 Dusseldorf Dubai, UAE
T: +966 (013) 340 5604 Saudi Arabia F: +966 (011) 265 1101 B Building, 10th Floor Postfach 104865 T: +971 44 355 888
T +966 (013) 356 7950 1138 Budapest, Hungary 40039 Dusseldorf F: +971 44 230 810
Ibn Zahr Saudi European Technical Services Laboratory
F +966 (013) 358 6025 T: +36 188 933 36 Germany
Petrochemical Co. T: +966 (011) 265 1661 UKRAINE
+36 188 933 37 T: +49 211 171 400
PO Box 10330, Al-Jubail 10330, Sharq Eastern F: +966 (011) 265 1686 SABIC Eastern Europe
F: +36 188 933 38 F: +49 211 171 401 01
Saudi Arabia Petrochemical Co. Kosmodamianskaya
T: +966 (013) 341 5060 PO Box 10035, Al-Jubail 31961, SERBIA
SOUTH AFRICA THAILAND Naberezhnaya 52, Bld 1
F: +966 (013) 341 2966 Saudi Arabia SABIC Hungary Kft.
SABIC South Africa (Pty) Ltd SABIC Asia Pacific Pte Ltd 115054, Moscow, Russia
E: info@ibnzahr.sabic.com T: +966 (013) 357 5000 Duna Tower Office Building
23rd Floor, Metropolitan Thailand Representative Office T: +7 985 766 69 14
F: +966 (013) 358 0385 Népfürdõ u. 22
Kemya Jubail Building CRC Tower, 36th Floor +7 495 287 92 03
E: info@sharq.sabic.com B Building, 10th Floor
Petrochemical Co. 7 Walter Sisulu Avenue No.87/2, Wireless Road, Lumpini F: +7 495 287 92 02
1138 Budapest, Hungary
PO Box 10084, Al-Jubail 31961, Shrouq Saudi Japanese PO Box 7193 Sub-district, Phatumwan E: salescisbaltics@sabic.com
T: +36 188 933 36
Saudi Arabia Acrylonitrile Company Roggebaai, Cape Town 8001, District, Bangkok 10330,
+36 188 933 37 UNITED ARAB EMIRATES
T: +966 (013) 357 6000 PO Box 10868 South Africa Thailand
F: +36 188 933 38 SABIC Dubai
F: +966 (013) 358 7858 Jubail Industrial City 31961, T: +27 214 096 100
SABIC Innovative Plastics P.O. Box: 25892
E: kemya@kemya.sabic.com Saudi Arabia SINGAPORE F: +27 214 096 101
(Thailand) Co., Ltd. Dubai Business Bay,
T: +966 (013) 340 6707 SABIC Asia Pacific Pte. Ltd
Petrokemya Arabian SPAIN 15th Fl., Thaniya Plaza Building Vision Tower
F: +966 (013) 340 6878 One Temasek Avenue
Petrochemical Co. SABIC Marketing Ibérica S.A.U. 52 Silom Road Floor 50
# 06-01 Millenia Tower,
PO Box 10002, Al-Jubail 31961, Specialty Chem Saudi Edificio Euro-3 Suriyawong, Bangrak Office No. 5001
Singapore 039192
Saudi Arabia Specialty Chemicals Company C/Frederic Mompou, 5, 4º – 4A Bangkok 10500, Thailand Dubai, UAE
T: +65 655 725 55
T: +966 (013) 358 7000 PO Box 10273, Al-Jubail 31961, 08960 Sant Just Desvern T: +66 2 2312323-4 T: +971 (4) 248 6800
F: +65 653 181 01
F: +966 (013) 358 4480 Saudi Arabia Barcelona, Spain F: +66 2 2312322 F: +971 (4) 244 1918
E: sappl@sabic.com.sg
E: petrokemya@petrokemya. T: +966 (013) 356 7900 T: +34 934 703 060
SABIC Innovative Plastics UNITED KINGDOM
sabic.com F: +966 (013) 358 7577 SABIC Innovative Plastics F: +34 934 736 436
(Thailand) Co., Ltd. SABIC UK Limited
E: specialtychem@sabic.com (SEA) Pte. Ltd.
Sadaf Saudi Petrochemical Co. SABIC Sales Spain, S.L. 64/22 Moo 4 Tumbol Pluak Papermill Drive, Redditch
SABIC Innovative Plastics
PO Box 10025, Al-Jubail 31961, United Jubail United C/ Frederic Mompou 5, 4°– 4a Daeng Amphur Worcestershire
Singapore Pte. Ltd.
Saudi Arabia Petrochemical Company 08960 Sant Just Desvern Pluak Daeng, Rayong 21140, B98 8QJ, UK
23 Benoi Road
T: +966 (013) 357 3003 PO Box 10085, Al-Jubail 31961, Barcelona, Spain Thailand T: +44 (0)15 275 90570
Singapore 629895
F: +966 (013) 357 3343 Saudi Arabia T: +34 934 703 060 T: +66 389 270 00 F: +44 (0)15 275 90577
T: +65 621 041 00
E: info@sadaf.sabic.com T: +966 (013) 359 5000 F: +34 934 736 436 F: +66 389 552 44
F: +65 686 130 63 SABIC UK Petrochemicals
F: +966 (013) 359 5012 SABIC Innovative Plastics TUNISIA Limited
SAMAC Saudi Methyl SABIC SK Nexlene Company
Acrylate Company Yansab Yanbu National España SCpA SABIC Tunisia Wilton Centre
Pte Ltd
P.O. Box. 10003, Al-Jubail 31961, Petrochemical Company SABIC Innovative Plastics GP 3, Avenue Hassib Ben Redcar
One Temasak Avenue
Saudi Arabia PO Box 30925 BV SCoM AmmarLes Berges du Lac, TS10 4RF, UK
#09-04 Millenia Tower
T: +966 (013) 340 5500 Yanbu Industrial City 41912, Ctra. de Cartagena a Alhama 1053 Tunisia T: +44 (0)16 424 53366
Singapore, 039192
F: +966 (013) 340 5604 Saudi Arabia de Murcia, Km 13 T: +216 70 011 320 F: +44 (0)16 428 34608
T: +65 6470 9460
T: +966 (014) 321 9100 30390 La Aljorra F: + 216 71 860 735 E: teeside@sabic.com
SAFCO Saudi Arabian F: +65 6470 9479
F: +966 (013) 321 2483 Murcia, Spain
Fertilizer Co. TURKEY SABIC Innovative Plastics Ltd.
E: shares@yansab.sabic.com.sa SLOVAKIA T: +34 968 129 100
PO Box 11044, Al-Jubail 31961, SABIC Turkey Papermill Drive, Redditch
SABIC Poland Sp z.o.o.
Saudi Arabia Yanpet Saudi Yanbu ul.17 Stycznia 45A SWEDEN SABIC Petrokimya Tic. LTD STI Worcestershire
T: +966 (013) 341 1100 Petrochemical Co. SABIC Nordic A/S Plastikleri San. Tic. A.Ş. B98 8QJ, UK
02-146 Warsaw, Poland
F: +966 (013) 341 1257 PO Box 30333 41912 Kogle Allé 2 Saray Mah. Dr. Adnan T: +44 (0) 15 275 90570
T: +48 224 323 737
Yanbu Industrial City 41912 DK-2970 Hørsholm, Denmark Buyukdeniz Cad. F: +44 (0) 15 275 90577
Saudi Kayan F: +48 224 323 740
21441, Saudi Arabia T: +45 33 32 49 18 Akkom Ofis Park Cessas
Petrochemical Co.
T: +966 (014) 396 5000 Plaza B Block
PO Box 10302, Al-Jubail 31961, Saudi Innovative Plastics
F: +966 (014) 396 5006 20–21 Floor
Saudi Arabia Sweden AB
E: info@yanpet.sabic.com Umraniye Istanbul, Turkey
T: +966 (013) 359 3300 Solna Strandväg 78
T: +90 216 636 5000
F: +966 (013) 359 3111 171 54 Solna, Sweden
F: +90 216 636 5050
T: +45 33 32 49 18
82 SABIC
ANNUAL REPORT 2017
This list includes all material affiliates (including sales organizations), as wholly owned by SABIC or to which
SABIC is partner, on the basis of their country/countries of operations. A full list comprising the total SABIC
group holdings worldwide is available on: http://www.sabic.com/corporate/en/ourcompany/manufacturing-
affiliates/sabic-manufacturing-affiliates.
Forward-looking statements: This document may contain “forward-looking statements” – that is, statements
concerning potential future events, or that relate to the expected future business, financial performance or
financial condition of our company or others. Such statements often contain words such as “expect,” “intend,”
“anticipate,” “plan,” “see,” “believe,” “seek,” or “will.” By their nature, forward-looking statements address
matters that are uncertain. Many factors could cause our actual results to be materially different than those
expressed in our forward-looking statements. Specific examples include: changes in future economic and
financial conditions, including volatility in raw material and commodity prices; interest and exchange rates;
the value of financial assets; and potential market disruptions or other impacts arising in our company’s key
markets. We disclaim any undertaking to update our forward-looking statements.
Unless otherwise noted, SABIC and brands marked with ™ or ® are trademarks of SABIC or its subsidiaries or
affiliates. Any brands, products or services of other companies referenced in this document are the
trademarks, service marks and/or trade names of their respective holders.
Responsible Care is a trademark of the American Chemistry Council.
This document uses Sappi Magno paper. All fibers are from sustainable and controlled sources.
It is FSC® PEFC® certified and is fully recyclable.
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PO Box 5101
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Saudi Arabia
T +966 (011) 225 8000
F +966 (011) 225 9000
E info@sabic.com
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