SAFCO announces SR 112.5m (USD 30m) profit

Notes and media contacts

Issued on behalf of SABIC by Gulf Hill & Knowlton. For further information, please contact Rob Foyle on tel: 009661 2258034

Abdulaziz Al-Ageel
Media Relations Manager, Corporate Communications

The Middle East's largest petrochemicals company, SABIC, is based in Riyadh, Saudi Arabia.

It was founded in 1976, when the Saudi Arabian Government decided to use hydrocarbon gases released in the production of oil as raw material for the production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares, with the remaining 30% held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council (GCC).

SABIC's business activities have been restructured and a new management model became effective on 1 September 2002. There are now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates; Polyolefins; PVC & Polyester; Fertilizers and Metals. Supporting all these functions is a corporate core consisting Human Resources; Corporate Finance; Corporate Control and Research & Technology. A Shared Services Organization will become operational in 2003.

SABIC has two large industrial sites in Saudi Arabia - Al-Jubail and Yanbu - with sixteen world-scale production complexes. Some of these production complexes are operated with multi-national partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. In addition, SABIC has interests in three production complexes in Bahrain. Over the last 16 years, SABIC's overall production capacity has increased considerably. In 2002 it amounted to 40.6 million metric tons.

SABIC EuroPetrochemicals owns two petrochemical production sites in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons. They annually sell about 2.6 million tonnes of polymers, mainly in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals.

SABIC employs over 16,000 people worldwide, most of whom are based in Saudi Arabia. In 2002 SABIC posted sales of approximately SR34bn (US$9.06bn) and a net profit of approximately SR2.84bn (US$758.4m)