[24/7] SABIC mulls investments into US amid European slowdown SABIC, the world"s biggest petrochemicals maker by market value, is studying investment opportunities in the US as the economic slowdown in Europe and China hurt its second-quarter sales, reported SaudiGasette. SABIC"s plan for US investments comes as the economic slowdown in Europe and China ebbed demand from clients and affected earnings at the company and its affiliates. "It is very important that SABIC is not left out from investments in the US as it is a huge market in terms of the presence of shale gas and also proximity to other markets," Chief Executive Officer Mohamed Al-Mady said in Riyadh today. "We are studying opportunities in the US to expand SABIC"s presence in the chemical and polymer businesses," he said, declining to give further details until the plans crystallize. SABIC would be joining companies including Dow Chemical Co. and Exxon Mobil Corp. in seeking to take advantage of the US shale boom that has helped drive down natural-gas prices. Cheap gas is doubly advantageous to chemical makers because it"s used as a raw material and to power factories. SABIC plans to cut about 1,050 positions and close some assets in Europe as the company responds to diminished demand. The job cuts will take place across Europe, a third of which will be contracting staff and two- thirds Sabic employees. SABIC Americas, the company"s unit, provides chemicals and fertilizer products to industries in the US, Canada, Mexico, Central America, South America and the Caribbean, according to the company"s website. It also operates a research and technology center in Houston, Texas. Saudi Basic Industries Corporation (SABIC) ranks among the world"s top petrochemical companies. The company is among the world"s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers. SABIC recorded a net profit of SR 24.72 billion (USUSD 6.59 billion) in 2012, down 15,5% year-on-year. Sales revenues for 2012 totalled SR 189 billion (USUSD 50.40 billion). Total assets stood at SR 338 billion (USUSD 90.13 billion) at the end of 2012. SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific. Source:mrc
Posted on: Wed, 24 Jul 2013 05:25:34 +0000
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