SABIC, currently in the process of being acquired by Saudi Aramco, on Sunday announced its decision to establish a new company called SABIC Agri-nutrient Investments, which will consolidate all its equity shares and assets currently held in several companies producing fertilizers.
The plan is to transfer the 50% share it holds in Jubail Fertilizer Co. (Al-Bayroni), SABIC’s 50% stake in National Chemical Fertilizer Co.(Ibn Al-Baytar), the company’s 33.33% holding in Gulf Petrochemical Industrial Co (GPIC; Manama, Bahrain), SABIC’s 30% share in Ma`aden Phosphate Co., (MPC) and SABIC’s 15% share in Ma`aden Wa`ad Al-Shamal Phosphate Co., (MWSPC). Taiwan Fertilizer Co. owns 50% in Al-Bayroni; stock exchange-listed Saudi Arabian Fertilizer Co. (SAFCO) owns 50% in Ibn Al-Baytar; while the state of Bahrain and Petrochemical Industries Co. (Kuwait City) each own one-third in GPIC. Ma’aden holds a 70% stake in MPC and 60% in MWSPC. Mosaic owns a 25% stake in MWSPC.
In addition, SABIC has signed a memorandum of understanding with SAFCO, a producer of ammonia, urea and urea formaldehyde, for SAFCO to acquire SABIC’s investments in affiliates that produce fertilizers and related products. SABIC is currently the anchor shareholder in SAFCO. The MOU will facilitate the integration of the newly formed company, SABIC Agri-nutrient Investments, with SAFCO, subject to regulatory and shareholder approval. The integration process is expected to be completed by the end of 2019.
SABIC says the restructuring will serve as a growth platform strengthening SABIC’s ambition to grow its fertilizer business into a global leading position. SABIC has capacity to produce 5 million metric tons/year (MMt/y) of urea, 3.4 MMt/y of ammonia, 1.5 MMt/y of mono- and di-ammonium phosphate, and 900,000 metric tons/year of other complex fertilizers.
“The integration of our agri-nutrient production assets under one umbrella, represents part of SABIC’s diversification strategy and transformation program to achieve successful and sustainable long-term growth…Integration of all our fertilizer production assets will allow SABIC and SAFCO to achieve accelerated organic and inorganic growth as well as capture further operational synergies and increase overall production efficiency,” says Yousef al-Benyan, SABIC CEO.
SABIC agri-nutrients strategic business unit and its marketing, sales and technology and innovation functions will remain part of SABIC delivering the company’s 2025 strategy through its investment arm, SABIC says.
By Natasha Alperowicz
Source: Chemical Week
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.
