SABIC: embracing new era with 'Chemistry that Matters'

This year marks the 40th anniversary of China’s reform and opening up policy. Saudi Basic Industries Corporation (SABIC) has been fortunate to witness and contribute to this great historical movement.

Since its entry to China in the 1980s, SABIC has been a committed inclusive partner of the country’s economic growth. While continuing to expand its business and driving innovation, SABIC actively fulfils its corporate social responsibilities under the “Chemistry that Matters” umbrella.

As the result of years of effort, China has grown into one of the most important strategic markets for SABIC globally. SABIC’s sales revenue in China already accounts for approximately 20 percent of its global total. In 2017, the main business revenue and profits of China’s petrochemical industry rose 15.8 percent and 52.1 percent respectively and the Chinese market will continue to play a pivotal role in SABIC’s global marketing strategy.

Continually focused on delivering its commitment to customers and partners in China

For over 40 years — almost the same as the timespan of China’s reform and opening up — SABIC has strived to be a vision enabler in China. With the rapid expansion of its footprint in China, SABIC has turned Shanghai into its hub for the Asia Pacific region. SABIC’s operations now cover 14 strategic markets in China, including a joint venture with Sinopec called SSTPC, operating a mega-size petrochemical enterprise consisting of nine world-scale production plants. SSTPC recently authorized the construction of a new polycarbonate plant in Tianjin, which is expected to be operational by 2021. Moreover, an investment MOU for a mega petrochemical project in China has been reached by SABIC and Fujian province — a major milestone that underlines SABIC’s commitment to China.

Technology and innovation are the major driving forces highly valued by SABIC. The company always strives to be among the world’s most innovative — Since its establishment in 1976, SABIC has made many technological breakthroughs. The company now owns more than 10,000 patents and has significant research resources with innovation hubs in five key geographies — USA, Europe, Middle East, South Asia and North Asia. The state-of-the-art SABIC Technology Center in Shanghai, with an investment of US$100 million, became operational in 2013. The center serves China and Northeast Asia markets as a major strategic R&D hub, and focuses on research projects ranging from basic to applied science. Across these enterprises, SABIC’s dedication and care toward its employees has been continuously recognized, with SABIC being awarded the Top Employer China award for nine consecutive years since 2010.

Fulfilling its corporate social responsibility through flagship programs

The promotion and development of SABIC’s corporate social responsibility program is crucial for SABIC to fulfil its sustainable development commitment. In 2014, SABIC brought its global signature CSR program “Lights of Our Future” to the country. This program aims to have a positive and lasting impact on China’s youth by enhancing their awareness of sustainability and inspiring their creativity and innovation in environmental protection. By June 2018, SABIC had engaged more than 1,900 Chinese students aged 12-28 in this program, with more than 300 volunteers from SABIC devoting over 3,900 hours either to the course itself or by contributing to the course materials. More than 40 teachers have also devoted over 1,100 hours to educating or supporting volunteers.

In 2016, SABIC launched “Back to School” in Ningxia Hui Autonomous Region. Through this global flagship CSR program, SABIC has provided books and other basic school supplies to over 1,400 primary students aged 6-13 in Ningdong. SABIC has also launched a series of CSR programs including “river management,” and disaster relief in China. All these efforts and practices embody SABIC’s firm commitment to fulfilling its corporate social responsibilities.

Partnership for a shared future

Looking to the future, China’s commitment to and emphasis on opening up and innovation is highly in line with SABIC’s 2025 strategy. Encouraged by the new measures of opening up and the sound business environment in China, SABIC is intensifying its investment, making every effort to capitalize on emerging opportunities in the name of making an even greater contribution to China’s economic transformation and cross-regional initiatives.

“An open and innovative world is not optional,” remarked Mr Yousef Al-Benyan, vice chairman and CEO of SABIC, during his keynote speech at the Boao Forum for Asia (BFA) Annual Meeting this April. “Such innovations require targeted investment, which should be carried out through collaborative efforts across the region and the world.”

“Made in China” is moving toward “Created in China,” shifting China’s reputation as a country that specializes in production to one that innovates. This offers new strategic opportunities for SABIC, who, through enhanced innovation capabilities that creates value based on market and customer demands, transformation on business model to better serve the local customers, talent development in China, and promoting the diversification of feedstock, will achieve rapid iterations of sustainable products and solutions and continue to consolidate its leading position in the industry.

Mr Al-Benyan uses one word — growth — to define the future of the petrochemical industry and the world in 2030 and beyond. “The Gulf nations and China already have a firm foundation on which to build mutual, sustainable and inclusive growth — growth that benefits our people at home as well as the world at large.”

Ushering in a new era, China’s economic transformation is embracing new dynamics and opportunities. SABIC will further adhere to the market-driven strategy under “Chemistry that Matters” and proactively participate in China’s new round of reform and opening up. With the goal of supporting the Belt and Road Initiative and the Saudi 2030 Vision, SABIC is committed to becoming a global partner of China’s sustainable development and inclusive growth.