JEDDAH, 1 September 2007 — SABIC Chairman Prince Saud ibn Abdullah ibn Thenayan Al-Saud yesterday announced the completion of purchase of GE Plastics from General Electric for a price of $11.6 billion.
Al-Saud said in a press statement carried by the Saudi Press Agency, that the former GE unit is now SABIC Innovative Plastics, a new business addition to SABIC that will focus on the global growth of thermoplastics and engineering plastics through innovation to serve the automotive, electronics, health care, and construction sectors.
He also announced that Brian Gladden has been appointed CEO of SABIC Innovative Plastics. “We are very pleased to confirm the completion of this acquisition”, said Prince Saud said in a statement.
“This acquisition will significantly broaden SABIC’s plastics product portfolio and provide access to new global markets. The people, products and technologies of SABIC Innovative Plastics bring a legacy of material innovation and expertise that I believe will enable SABIC to further strengthen and grow its position as a world-class leader in the plastics industry. We will maintain our commitment to the people, communities and facilities that have contributed to this world-class organization”, he said.
Saudi Basic Industries Corp., one of the world’s 10 largest petrochemical manufacturers, reported a record net profit of SR20.3 billion in 2006 as compared to SR19.2 billion in 2005 and sales revenues hit SR86.3 billion as compared to SR78.3 billion in 2005.
SABIC’s shares gained 0.19 percent to SR132.50 last week.
SABIC Vice Chairman and CEO Mohamed Al-Mady said: “We were able to secure the required financing due to recognition of SABIC in the global financial and capital markets, sound business profile of SABIC Innovative Plastics and its world-class diversified product portfolio. Hence, we successfully completed the deal on time, despite the prevailing turbulence in the global credit markets. This acquisition will further enhance SABIC’s position amongst the leading global companies. Our global manufacturing capabilities will be further expanded to include significant additional plants and compounding operations in the Americas, Europe and Asia Pacific regions.”
“SABIC Innovative Plastics is another strategically important step in our global growth and ongoing commitment to serve our customers — both in terms of geography and in meeting their needs for innovative plastics solutions and products that deliver outstanding value,” he said.
Following earlier acquisitions of DSM and Huntsman’s petrochemicals businesses in Europe, SABIC now has more than 30,000 employees. The company has an expanded global network of manufacturing facilities, research & technology centers and sales offices. With a presence in more than 100 countries, SABIC is well-positioned to meet the needs of its global customers.
