SABIC Signs Investment Agreement to Develop Thermoplastic Compounding Plant in China
Saudi Basic Industries Corp. (SABIC) has officially sealed a promising investment agreement with the Fujian government in China, marking a significant step towards the development of an engineering thermoplastic compounding plant in the thriving Asian nation.
Emphasizing its commitment to meeting the demands of local customers in China, SABIC expressed that this deal further solidifies its presence in the country and underscores China’s importance as a key market for the company’s growth, accounting for over 40 percent of its global chemical sales.
Apart from the upcoming engineering thermoplastics compounding plant in Fujian province, SABIC currently operates the SABIC Technology Center in Shanghai, three compounding plants in Guangzhou, Shanghai, and Chongqing, as well as activities in 17 cities across Greater China.
“This investment agreement represents a significant milestone in SABIC’s expansion in China and demonstrates our unwavering confidence in investing in the region,” stated Abdulrahman Al-Fageeh, CEO of SABIC.
Located in the Gulei Port Economic Development Zone in Zhangzhou, Fujian, the planned compounding plant will specialize in combining thermoplastic polymers with additives, fillers, and reinforcements to create tailored materials with specific properties.
The facility is set to produce pelletized polycarbonate and CYCOLOY resin blends for various industries, including electrical and consumer electronics, automotive, and emerging sectors like solar energy, electrification, and 5G technology.
Al-Fageeh highlighted, “By fostering collaboration with partners in the supply chain, the project aims to enhance our compounding product offerings and cater to this strategic market with innovative and premium-quality material solutions.”
Furthermore, the new plant is expected to synergize with SABIC’s existing joint ventures in China, namely SINOPEC SABIC Tianjin Petrochemical Co. Ltd. and SABIC FUJIAN Petrochemicals Co. Ltd., paving the way for enhanced growth opportunities in the region.
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SABIC, the global chemical and petrochemical company, is taking its operations in China to the next level with the announcement of a major expansion. Dr. Abdulrahman Al-Fageeh, SABIC’s Executive Vice President, shared that the company will be ramping up its collaboration efforts with both global and local partners to solidify its presence in the Chinese market.
The expansion plans entail the establishment of a new site equipped with cutting-edge technology for compounding lines, color development capabilities, and advanced equipment. This strategic move aims to empower SABIC to co-create innovative solutions for engineering plastics alongside its valued customers and partners.
Global Reach, Local Impact
Headquartered in Riyadh, SABIC’s global footprint encompasses a wide array of products, ranging from chemicals and commodity plastics to high-performance plastics, agri-nutrients, and metals. With a commitment to quality and sustainability, SABIC continues to push the boundaries of innovation across industries.
Record-Breaking Profits
In a recent financial report, SABIC disclosed an impressive 84% year-on-year surge in net profit, reaching SR2.18 billion ($564 million) in the second quarter of 2024. This unprecedented growth underscores SABIC’s resilience and adaptability in a dynamic market landscape, setting the stage for further success in the industry.