Sabic explores US joint venture opportunities
Sabic's chief executive said that the company had investment options to help the company achieve its strategic target for 2025
Saudi Basic Industries Corporation (Sabic) is looking to start a joint venture in the United States next year as a way to increase its overseas investments, the company’s chief executive said on Monday.
Yousef Al Benyan, the vice chairman and chief executive of the Saudi-based company said that consolidation was necessary to strengthen the GCC downstream industry to bring it to the next level of sophistication.
He said: "We are looking to start a joint venture in the United States as well as looking to expand with our existing partners like Sinopec and ExxonMobil for different regions.”
He added that Sabic had investment options to help the company achieve its strategic target for 2025.
The global petrochemicals industry has been hurt by low oil prices over the past two years as Sabics third-quarter profit fell by nearly 7% with net income at $1.3bn (SAR5.2bn) for the three months to the end of September, compared with $1.4bn (SAR5.6bn) a year earlier.
Al Benyan noted the need for regional players to increase competitiveness as the sector begins to shift, extending their offerings and adding more competitive products.
"China and the United States are normally a source of demand but they are converting to becoming our competitors," said Mr Al Benyan. "And keeping our current structure isn't going to be sustainable for the next decades. The competitive landscape is shifting beneath our feet."
Sabic said last year that it was looking to invest in Chinese and American companies to expand its technology capability.