Sabic Dissolves Innovative Plastics Unit
Saudi Basic Industries Corp. (Sabic) is undertaking a global transformation aimed at creating a more agile, cost-efficient, and customer-focused organization. Part of this reorganization is the dissolving of its Sabic Innovative Plastics unit.
The reorganization follows a comprehensive review addressing the challenges Sabic faces in the context of the company’s 2025 strategy -- including changes in the market landscape as well as the need to drive technology and innovation. As a result of this optimization, the commodity products of the Innovative Plastics Strategic Business Unit (SBU) will now be housed in the Chemicals and Polymers SBUs. The remaining Innovative Plastics’ solutions will fall under a newly created SBU called Specialties. This business will serve as the exclusive home for Sabic specialty solutions. Along with the Performance Chemicals SBU, the portfolio of which was reallocated earlier, the Innovative Plastics SBU will cease to exist.
One of the drivers of this change is the differing technology priorities of commodity and specialty businesses. The future of the commodity line will depend heavily on innovations around advancing feedstock technology. Specialty products face separate technology challenges, including the need to seek out technology acquisitions and partnerships or joint ventures that can enrich Sabic’s existing portfolio.
“This reorganization will focus resources more intensively on the needs of each line, enhancing customer intimacy with more focused solutions provision and helping move Sabic to the next level of portfolio product management”, said Yousef Abdullah Al-Benyan, Acting Vice Chairman and CEO of Sabic. The company’s new organizational structure is expected to be in place by January 1, 2016.
SABIC Innovative Plastics
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