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Logo of Saudi Basic Industries Corp.
Saudi Basic Industries Corp. (SABIC) and Saudi Arabian Oil Co. (Saudi Aramco) are focused on providing world-class products and services to global customers, SABIC said in a statement.
“As part of this, the sales and marketing rights of approximately 5.4 million metric tons of chemicals and polymer products will be transferred from Saudi Aramco to SABIC on a phased basis starting 2021,” according to the statement.
This will be subject to obtaining the necessary approvals. SABIC will focus on petrochemicals, while Saudi Aramco will concentrate on fuel products.
SABIC will sell methyl tert-butyl ether (MTBE) and benzene to Saudi Aramco and will rely on the latter to source European cracker feedstock and benzene to global operations.
In expanding the portfolio footprint, there will be around 900,000 metric tons of products to SABIC. Also, the new capacities include polyurethane, propylene oxide and butyl glycol ethers, which will help expand its product portfolio.
SABIC expects a higher global market share of polymers and chemicals, which will help it become the world’s top chemicals producer.
Between the deal closure in June 2020 until the end of the first quarter, SABIC achieved a synergy value of $156 million.
Earlier today, SABIC reported net profit after Zakat and tax of SAR 4.86 billion for the first quarter of 2021, against a net loss of SAR 1.05 billion in the year-ago period, Argaam reported.
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