SABIC Metals has signed 4 agreements with companies to build new production plants for flat steel at its Hadeed affiliate in Al-Jubail, Saudi Arabia.
SABIC Vice Chairman and CEO, Mohamed Al-Mady, said: "These agreements and expansions represent part of SABIC's strategic plan to meet the market's growing demands and improve its position worldwide.
"Since SABIC Metals' formation, it has continuously endeavored to increase its plant capacity and diversify its range of products.
"In 2003 its capacity reached 3.9 metric tonnes of long and flat steel products. Upon completion of this new expansion program by 2006, annual production will rise to 5.5 million metric tones of long and flat steel products".
SABIC Metals has signed 4 agreements:
Firstly with Saudi Voest-Alpina;
Second with a consortium with Austrian Voest-Alpina and Matrix Technologies. These two are for construction of a facility to expand production of direct reduced steel by 1.7 million metric tones annually;
Third a consortium with Saudi Voest-Alpina and Saudi Siemens;
Fourth a consortium with Austrian Voest-Alpina and Siemens Germany. These two are for the construction of a steel production plant with electric furnace with an annual production capacity of 1.4 metric tonnes. There will also be a continuous casting machinery steel production plant. This will produce 1.2 million metric tonnes of steel slabs.
-Ends-NOTES TO EDITORS:
The Middle East's largest petrochemicals company, SABIC, is based in Riyadh, Saudi Arabia.
It was founded in 1976, when the Saudi Arabian Government decided to use hydrocarbon gases released in the production of oil as 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 countries of the Gulf Cooperation Council (GCC).
SABIC's business activities have been restructured and a new management model became effective on 1 September 2002. There are now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates; Polyolefins; PVC & Polyester; Fertilizers and Metals. Supporting all these functions is a corporate core consisting Human Resources; Corporate Finance; Corporate Control and Research & Technology. A Shared Services Organization became operational in 2003.
SABIC has two large industrial sites in Saudi Arabia - Al-Jubail and Yanbu - with 16 world-scale production complexes. Some of these production complexes are operated with multi-national partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. In addition, SABIC has interests in three production complexes in Bahrain. Over the last 16 years, SABIC's overall production capacity has increased considerably. In 2003 it amounted to 42.3 million metric tons.
SABIC EuroPetrochemicals owns two petrochemical production sites in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. It annually sells about 2.6 million tonnes of polymers, mainly in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals.
SABIC employs more than 16,000 people worldwide, most of whom are based in Saudi Arabia. In 2003, SABIC posted sales of approximately SR47.1bn (US$12.56bn) and a net profit of approximately SR6.716bn (US$1.79bn).
Mohammad Al-Motawa
General Manager,
Corporate Communications
© Press Release 2004
