SABIC's journey to further its growth

Prince Saud bin Abdullah bin Thenayan Al-Saud, chairman of Royal Commission for Jubail & Yanbu and chairman of SABIC, delivered a keynote speech at BFA 2015, calling for "bold new models of thinking" in achieving future success.

SABIC is awarded one of the top employers in China for the sixth consecutive year.

Inspiring new possibilities and delivering chemistry that matters, Song Ping reports.

This year is vital for China as the country rolls out its ambitious 13th Five-Year Plan (2016-20). It looks to continue surmounting challenges after generating an economic boom over three decades and lifting half a billion more people out of poverty.

Its remarkable story of transforming ideas into reality has partly been realized through the nation's cooperation with some of the most innovative multinationals in the world such as SABIC.

Creating lasting value

From its humble beginning in 1976, SABIC has grown steadily to become one of the world's most successful chemical companies.

SABIC, which is among the top producers of polyethylene, polypropylene, advanced thermoplastics, glycols, methanol and fertilizers, is also one of largest producers of steel in the Middle East.

Its global vision is to become the preferred world leader in chemicals, responsibly providing materials solutions through innovation, learning and operational excellence while sustaining maximum value for its stakeholders.

The core of SABIC's growth strategy is its focus on powering the ambitions of its customers.

With a deep understanding of customers' needs and putting their success at the heart of everything it does, SABIC works to make its customers' and its own ambitions a reality, calling this "Chemistry that Matters".

It has created new material solutions such as helping automakers like Jaguar Land Rover develop lighter and more energy efficient vehicles.

Other examples include assisting customers like Xiaomi make cutting-edge consumer electronics products, and supplying specialty sheets for more than 30,000 square meters of roofing and facades for Brazil's Arena da Baixada, which hosted the 2014 World Cup.

Journey of collaboration

With high interest in Asia and China's future, SABIC has participated in dialogues and platforms aimed at facilitating growth and sustainable development in regional economies and shaping the future of China's petrochemical industry, including the Boao Forum for Asia Annual Conference and the China Petroleum and Chemical International Conference.

At a press conference for this year's Boao Forum For Asia in January, SABIC renewed its commitment to be a partner for the eighth consecutive year.

SABIC said it wants to help customers embrace the abundance of emerging opportunities in China, especially in the nation's drive to urbanize. By 2020, it is estimated that as many as six out of 10 people in China will live in cities. Modernization and development is continuing in the western and central regions of China. As China enters a new era of sustainable development with its 13th Five-Year Plan, focusing on improving economic and environmental sustainability, driving local innovation and reducing energy consumption, it has come out of the gates aggressively, rolling out the Belt and Road Initiative.

SABIC said it is in a good position to contribute to the initiative by helping to create material solutions for key industries in the Chinese economy, from the construction, auto and healthcare sectors, to consumer electronics, packaging and clean energy.

SABIC has 18 offices with over 1,300 employees in China. Its three engineering plastics compounding plants are in Shanghai, Nansha, Guangdong province, and Chongqing.

It has a joint-venture called the Sinopec SABIC Tianjin Petrochemical Co in Tianjin that produces petrochemical products such as ethylene, propylene, polyolefins, MEG and MTBE.

In a recent move to improve operational efficiency for customers in China, SABIC obtained its license to operate in the Shanghai new Free Trade Zone from November 2015.

Innovation and sustainability

SABIC's emphasis on sustainability and innovation reflects its understanding of China's priorities in its 13th Five-Year Plan.

With new materials and solutions, SABIC is addressing challenges to help create a better future for the nation. It has also integrated responsible manufacturing and business practices into its global operations, including in China, to reduce its impact on the environment. In China, SABIC was recognized with a Responsible Care Merit Award in 2013 and 2015 for its outstanding contributions to sustainable business practices.

"At SABIC, we are passionate about building relationships, innovation and sustainability into the DNA of our operations," said Yousef Abdullah Al-Benyan, acting vice-chairman and CEO of SABIC. "We firmly believe that sustainability cannot be an afterthought. We no longer focus on the product life cycle from production to consumption when talking about our products. Rather, we talk about production cycles that lead to new products, which is about ensuring that every part of the value we generate is used with maximum benefits for the sustainable development of communities."

The importance SABIC places on innovation is evident through its investments in research and development.

The SABIC Technology Center Shanghai, which opened in 2013, is dedicated to working with Chinese enterprises and industries to understand how it can play a part in helping the nation do more with less in addition to basic research activities.

From car manufacturers to consumer electronics, SABIC works with Chinese partners to develop better, more efficient products that meet ambitious sustainability requirements.

In September 2014, SABIC signed an agreement with the Chinese Academy of Sciences to further facilitate research, intellectual exchanges and the development of talent. The five-year agreement, supported by a multimillion-dollar investment by SABIC, will cover joint research in chemicals and engineering to develop advanced technologies and solutions.

In addition, to help foster China's next generation of innovators, SABIC set up its "Lights of Our Future" program in 2014. Under the program, postgraduates and PhD students from top Chinese universities, mentored by SABIC employees, are challenged to develop innovative and sustainable solutions to address China's environmental challenges, such as tackling air pollution and promoting recycling.

Making a difference

Today, SABIC contributes where it operates through investment, business and community partnerships as well as job creation.

SABIC recognizes that its employees are its greatest assets.

It has been awarded Top Employer in China for six consecutive years, an attestation of the value it places on providing a safe and nurturing working environment for its workforce.

It upholds its commitments as a responsible corporate citizen through charitable contributions, employee volunteer programs and in-kind contributions, such as partnering with China Youth Development Foundation to build Hope schools in earthquake-stricken Wenchuan, Sichuan province in 2008.

SABIC also worked with China Charity Federation to rebuild homes for the elderly who lost their homes and families during the Yan'an earthquake in 2013.

SABIC hopes to inspire possibilities and turn the China dream into a reality. "SABIC is committed to long-term growth in China, and we are transforming to better align with markets of the future. We are focused on assets optimization, operational excellence and portfolio expansion to deliver lasting value to our stakeholders," said CEO Al-Benyan.