Riyadh - Further to earlier reports outlining Saudi Basic Industries Corporation's (SABIC) intent to examine the sales offer from the proprietors of the Egyptian Fertilizer Company, SABIC clarifies that buying this company at the offered prices would not achieve the return on investment SABIC requires to meet its strategic investment plan. Therefore, SABIC has decided against bidding to buy the Egyptian Fertilizer Company.
SABIC reaffirms its view that the Egyptian market is strategically important in terms of investment and marketing. SABIC will continue to explore other ambitious opportunities.
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About Saudi Basic Industries Corporation
Saudi Basic Industries Corporation (SABIC) is the largest company in the Middle East by market capitalization (at more than US$ 100 billion), and the 11th largest petrochemicals manufacturer in the world. It is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers and the fourth largest polymers producer in the world.
SABIC's profit rose to a record SR 14.2 billion (US$ 3.8 billion) in 2004, a 112% increase on 2003 and the company's highest profit since inception. Sales revenues for 2004 totaled SR 68.5 billion (US$ 18.3 billion), an increase of 47% on revenues in 2003 making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 16,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons of production in 2004.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases released in oil production as the raw material for the production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe has its headquarters in Sittard in the Netherlands. It operates two petrochemical production sites in Geleen, Netherlands and Gelsenkirchen in Germany for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. In 2004 SABIC Europe sold 6 million tons of polymers, base chemicals and intermediates, mainly to the European market, employing 2,300 people.
© Press Release 2005
