Sabic, the world’s fourth-largest petrochemical company, announced its decision to establish a new company called ‘Sabic Agri-nutrient Investments’, to consolidate all its equity shares and assets currently held in several companies specialised in the production of various agri-nutrient products.
The decision includes Sabic’s share of assets in Al-Bayroni (Jubail Fertiliser Company) – 50 per cent; Ibn Al-Baytar (National Chemical Fertiliser Company) – 50 per cent; GPIC (Gulf Petrochemical Industrial Company) – 33.33 per cent; MPC (Ma‘aden Phosphate Company) – 30 per cent and MWSPC (Ma‘aden Wa‘ad Al-Shamal Phosphate Company) – 15 per cent. Additionally Sabic owns 43 per cent of Safco. The different production companies, manufacture a broad range of fertilisers (agri-nutrients), such as urea, phosphate-based and compound fertilisers. Sabic is currently an anchor shareholder in Safco, holding 43 per cent of the shares.
Additionally Sabic has signed a Non-binding Memorandum of Understanding (MoU) with its subsidiary Safco (Saudi Arabian Fertiliser Company), to facilitate the integration of the newly formed company – Sabic Agri-nutrient Investments – with Safco, subject to regulatory and shareholder approval. The integration process is expected to be completed by the end of 2019.
In its new form, the company will benefit from Sabic’s strong reputation in the agri-nutrients sector and will serve as a growth platform strengthening Sabic’s ambition to grow its agri-nutirients business into a global leading position.
Yousef Al-Benyan, Sabic Vice Chairman and CEO, said: "The integration of our agri-nutrient production assets under one umbrella, represents part of Sabic’s diversification strategy and transformation programme to achieve successful and sustainable long-term growth. Sabic has a long and strong track record of growing businesses through joint ventures and co-investment in both listed and private companies. Integration of all our fertiliser production assets will allow Sabic and Safco to achieve accelerated organic and inorganic growth as well as capture further operational synergies and increase overall production efficiency."
Sabic Agri-nutrients Strategic Business Unit and its Marketing, sales and technology and innovation functions will remain part of Sabic delivering the company’s 2025 strategy through its investment arms in this sector.
Meanwhile, Sabic presented an innovative new transparent high-heat Lexan CXT film product at the IDTechEx show in California.
The new polycarbonate (PC) based technology combines superior optical clarity and high design flexibility with excellent thermal and dimensional stability at elevated process temperatures. The material was specially developed to provide a high-performance and cost-efficient solution for substrates in the rapidly growing flexible printed electronics market as well as for other applications exposed to high processing and/or in-use temperatures.
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