SABIC targets US opportunities

Saudi Basic Industries Corp. (SABIC) is studying investment opportunities in the US as the economic slowdown in Europe and China hurt its second-quarter sales.
The world’s biggest petrochemicals group by market value declared a 13.96 percent rise in its second quarter net profit.
SABIC said its net income for the three months to June 30 was SR6.04 billion compared with SR5.3 billion in the same period last year.
The company said its gross profit for the same three months was SR 13.05 billion compared with SR 12.52 in last year.
Mohamed Al-Mady, SABIC vice chairman and CEO, said: “The increase in net income is die to a decrease in cost of sales and financial charges, despite reduced revenues due to lower sales prices for certain products.”
He added: “We demonstrate our commitment to stimulate local economic growth and build a strong relationship with our customers. We are a company who cares for market and customers.”
He expressed his commitment to expand into Middle East and international markets.
“We have many plans to increase our business in next years. We always welcome the decision of government because it is beneficiary to the petrochemicals industry in the Kingdom,” he added.
Mutlaq H. Al-Morished, executive vice president finance at SABIC, said: “This is a great achievement as a result of hard work and committed workers.”
He said: “We are highly committed to follow a Saudization in our company with 80 percent of local and 20 percent foreigner employees. We will improve our productivity and try our best to implement our plans with the help of dedicated members.”
He added: “Our products touch the lives of millions of people all around the world include chemicals, innovative plastics, and polymers to fertilizers and metals.
Concerns over slowing global economic growth has weighed down on SABIC’s financial performance in recent quarters as slow demand for its main products such as petrochemicals, metals and fertilizers.
SABIC’s products are used extensively in construction, car manufacturing and other major consumer goods.
The company has worked with some of the world’s most prominent automotive brands, including Volkswagen, Land Rover, Fiat, Mitsubishi and Hyundai to help develop new products and reach consumers in emerging and growing automotive markets throughout South Asia, Africa and the Middle East.
Earlier, SABIC announced an agreement with the Oil Ministry for fuel to power the plants which it said would create 2,500 jobs.
The company operates in more than 40 countries across the world and has 60 world-class manufacturing and compounding plants in locations across the Middle East, Asia, Europe and the Americas.