Mohamed Al-Mady, Vice Chairman and CEO of Saudi Basic Industries Corporation (SABIC) and Peter Huntsman, President and CEO of Huntsman Corporation (NYSE: HUN) today announced the completion of the purchase of Huntsman's UK Base Chemicals and Polymers business. Under the terms of the deal SABIC has acquired 100 per cent of the shares of Huntsman Petrochemicals (UK) Ltd for a purchase price of US$ 700 million in cash. The new entity has been renamed SABIC UK Petrochemicals.
The acquisition marks a significant step in SABIC's global growth plans. The former Huntsman business adds substantial capacity to SABIC Europe and complements the group's strong home base in the Kingdom of Saudi Arabia. All 850 Huntsman Petrochemicals (UK) Ltd employees will transfer to SABIC.
The acquired manufacturing business operates an 865 ktpa ethylene/ 400 ktpa propylene cracker and a 1.3 million tpa Aromatics facility with logistical facilities at Wilton and North Tees. SABIC will complete the construction of a new 400 ktpa capacity polyethylene (LDPE) plant in Wilton, Teesside. It is scheduled to come on stream by the end of 2007.
Commenting on the acquisition, Mr Al-Mady said, "I am pleased that the regulators have given their unconditional approval for this deal. This acquisition will enable us to accelerate our growth in Europe and strengthen our global market position. It will also provide additional value to our customers."
Boy Litjens, CEO SABIC Europe added: "We are fully committed to realizing the full potential of this acquisition and we intend to invest and grow the business in the future, including the continued construction of the new polyethylene plant. We are fortunate also to have acquired a talented and committed workforce whom we welcome into the SABIC family. We now start with the alignment and integration of the new business within our SABIC Europe organization".
NOTES TO EDITORS:Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East and one of the world's 10 largest petrochemicals manufacturers. The company is among the world's market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC's profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company's highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia in Al- Jubail and in Yanbu comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 46.7 million metric tons of production in 2005.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs nearly 2,450 people and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.5 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
NOTES TO EDITORS: About SABIC Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 60 billion), and one of the world's 10 largest petrochemicals manufacturers. The company is among the world's market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
SABIC's profit rose to a record SR 19.2 billion (US$ 5.1 billion) in 2005, a 35% increase on 2004 and the company's highest profit since inception. Sales revenues for 2005 totaled SR 78.3 billion (US$ 20.8 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Specialized Products, Polymers, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh, Geleen in the Netherlands, Houston USA and Vadodara in India. SABIC has more than 17,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia in Al- Jubail and in Yanbu comprising 18 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as Exxon Mobil, Shell and Mitsubishi Chemicals. SABIC's overall production capacity has increased from 35.4 million metric tons in 2001 to 46.7 million metric tons of production in 2005.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
SABIC Europe, headquartered in Sittard, the Netherlands, employs nearly 2,450 people and operates two petrochemical production sites in Geleen, the Netherlands and Gelsenkirchen in Germany for the production of polypropylenes, polyethylenes and liquid hydrocarbons. These are marketed by its European network of sales offices and logistical hubs. In 2005, SABIC Europe produced 2.5 million metric tons of polyolefins and 3.1 million metric tons of basic chemicals, mainly for the European market.
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