SABIC Realigns Business Unit Structure
Following a strategic review, Saudi Arabian petrochemicals group SABIC has announced a new corporate organization that it said is designed to address changes in the market landscape and the need to drive technology and innovation.
To meet challenges going forward, SABIC said it is realigning its existing portfolio while at the same time investing in innovation for future growth.
The Saudi group’s Innovative Plastics Strategic Business Unit (SBU) is being phased out and its products grouped under the Chemicals and Polymers SBUs. The remaining Innovative Plastics’ solutions will be absorbed by a newly created SBU, Specialties. The Performance Chemicals SBU, whose portfolio was reallocated earlier, also will cease to exist.
Yousef Abdullah Al-Benyan, SABIC’s acting CEO, said the reorganization will focus the group’s resources more intensively on the needs of each line, enhancing customer intimacy with more focused solutions provision.
One of the drivers of the changes is said to be the differing technology priorities of the group’s commodity and specialty businesses.
While in future the commodity lines will depend heavily on innovations around advancing feedstock technology, SABIC said specialty products face separate technology challenges, including the need to seek out technology acquisitions and partnerships or joint ventures. It did not comment on any specific plans.
