SABICJuly/August 2008 Issue 87

SABIC Innovative Plastics wins 2007 National ENERGY GLOBE AWARD

KING ABDULLAH LAUNCHES SR68BN PROJECTS IN JUBail

SABIC, SINOPEC sign strategic cooperation agreement

CHARLIE CREW: THE NEW PRESIDENT & CEO OF SABIC INNOVATIVE PLASTICS FOREWORD

Greetings to all of our readers around the world and welcome to issue 87 of SABIC magazine. We bring you news of several key appointments, including Charlie Crew who was promoted to president and CEO of SABIC Innovative Plastics. We also have a detailed report on the globally implemented SABIC Integration Program. The initiative is designed to streamline operations across the three Sharing our futures SABIC businesses and to ensure they are all growing in the same direction. Further successes are SABIC’s reported first quarter 2008 (1Q08) profits of 7 SABIC to market Saudi Aramco’s Chinese 11 SABIC INNOVATIVE PLASTICS at EURO 2008 SR6.92 billion (US$1.85bn), compared with SR6.28 billion for the same period in 2007. JOINt venture products We bring you the details of a speech SABIC’s Vice Chairman and CEO, Mohamed Al-Mady, gave at the Financial Times China-Middle East Summit, held in Riyadh, in which he outlined the strategic partnership Saudi Arabia has with China. Additionally, at Chinaplas 2008, SABIC Innovative Plastics announced a 5-22 NEWS: The inside story with news, views multi-pronged strategy to meet its customer needs through an expansion of and comments General Supervisor: Mohamed H. Al-Mady local expertise and product fulfilment. Vice-Chairman and CEO 23 COVER STORY: Sabic Innovative Plastics In Europe, we have news of the SABIC family of automotive businesses, from wins 2007 National Energy Globe SABIC Innovative Plastics, SABIC Europe, and Exatec, exhibiting together for the Editor-in-Chief: Othman M. Al-Humaidi first time – at the VDI Conference in Mannheim, Germany. General Manager 24-25 SABIC APPOINTMENT: SABIC Innovative We highlight SABIC’s latest bottle grade resin, which combines improved Corporate Communications Plastics names new President and CEO organoleptics with increased environmental friendliness, allowing packaging firms to ensure that your pint of milk remains fresh and pure for as long as possible. Managing Editor: Abdulaziz H. Al-Ageel 26-27 SABIC WORLD: At Chinaplas 2008, SABIC On a lighter note, we also have a colorful feature on the barbeque, which is Manager Media & External Innovative Plastics announced a multi- synonymous with sunshine and good times around the world. Few cooking methods are shared in the same manner across the globe. We bring you a Communications pronged strategy detailed report on how this pastime originated and spread to every corner Contributions to SABIC magazine are welcome and may be sent 28-29 SUCCESS STORY: SABIC’s latest bottle of the world. to: [email protected]. Articles and letters received may be grade resin allows packaging firms to Yet again we have a wonderful competition, with a beautiful leather briefcase edited for length and clarity. ensure that your pint of milk remains fresh up for grabs this month. As always, we hope you enjoy this issue and look forward Every effort has been made to report accurate information in and pure for as long as possible to any feedback you may have. this publication. However, neither SABIC nor the publishers vouch for its accuracy, neither do they indemnify any loss arising 30-33 INTEGRATION PROGRAM SABIC: Global Managing Editor through the use of the information. The views or opinions expressed herein do not necessarily reflect those of SABIC or initiative unites SABIC the publisher. 34-37 BEHIND THE SCENES: For the first time, the Saudi Basic Industries Corporation PO Box 5101 SABIC family of automotive businesses Riyadh 11422, Saudi Arabia. exhibited together at the VDI Conference in Mannheim, Germany

SABIC magazine is published on behalf of Saudi Basic Industries Corporation by: 38-41 SABIC CONFERENCES: Three hundred exhibitors from across the globe landed in Singapore in May for ASEANPLAS

42-45 Lifestyles: The barbeque is synonymous with sunshine and good times

Project Manager: Khaled Al-Masri

Senior Editor: Michael Gordon

Head of Design: Grigor Scott

Graphic Designer: Hussain Mohamed Al-Bakri

PO Box 301292, Riyadh 11372, Tel: +966 (1) 462 3632, Email: gbcksa@G BC-me.com 30 SABIC INTEGRATION PROGRAM UNITES GLOBAL 38 SABIC demonstrates its plastics prowess © 2008 Gray Business Communications BUSINESS UNITS IN Singapore Reprinting in whole or in part is prohibited by law except with the prior written approval of the publisher. PROJECTS SABIC NEWS S

King launches SR68bn projects in Jubail Shoura Council President visits SABIC

The Shoura President tours the permanent SABIC exhibition.

Dr. Saleh bin Abdullah bin Humaid, President of the Shoura Council visited Custodian of the Two Holy Mosques “It is heading to become one of the billion. Prince Saud ibn Abdullah ibn the SABIC headquarters in Riyadh King Abdullah launched 29 industrial largest economies in the world within Thenayan, Chairman of the Royal recently, accompanied by a high-level and development projects worth more the next 10 years.” He said the Commission for Jubail and Yanbu delegation of Shoura Council members. than SR68 billion (US$18.16 bn) in growing private sector participation and SABIC, said: “The farsighted He was received by Prince Saud Jubail last month. as well as the privatization of public vision of the King has enabled the bin Abdullah bin Thenayan Al-Saud, The new projects belonged to the corporations would strengthen the Jubail Industrial City to be the largest Chairman of the Royal Commission Royal Commission for Jubail and Yanbu, Kingdom’s economy. engineering project of its kind in the for Jubail and Yanbu and Chairman of SABIC and the private sector. The SABIC projects launched by the world. The Royal Commission has a SABIC, Mohamed Al-Mady, SABIC Vice Prince Saud, Mohamed Al-Mady and other SABIC executives with the Shoura Salman Muhammad Al-Jashi, a King included an expansion of National number of huge industrial complexes, President outside the SABIC headquarters building. member of Alsharqia Chamber’s Board Industrial Gas Company (SR1.31 the last of them being Saudi Kayan Prince Saud welcomed of Directors, said the government’s billion), an expansion of Saudi Petrochemical Co. which consists of Chairman and CEO, and other senior economy, improving the balance of support to the economic and service Methanol Company (SR3.5 billion), 15 plants.” the Shoura Council SABIC officials. payments and providing materials and sectors would play a big role in Saudi Iron & Steel Co. (SR3.77 billion), In his address, SABIC Vice Chairman President and his Prince Saud welcomed the President products for the national production attracting foreign direct investment to Jubail United Petrochemical Company’s and CEO Mohamed Al-Mady said that companions and and his companions and commended sectors. the Kingdom, especially from the US Linear Alpha Olefins plant (SR1.2 SABIC had its humble beginnings in the noble mission undertaken by the The Shoura Council President and Europe. billion), and National Gas Company’s a small apartment in Riyadh 30 years commended the noble Shoura Council. He expressed hope toured the company’s permanent “This will result in achieving sustained expansion project (SR1.28 billion). ago, facing countless problems but mission undertaken by that the Council’s communication and exhibition, which tells the story of the economic progress, creating more job This is King Abdullah’s second visit with boundless dreams, and has now cooperation will continue with SABIC in transformation of Jubail and Yanbu opportunities for Saudis and improving to Jubail in two years. In 2006, he become the fifth largest petrochemical the council. He expressed the interest of Saudi Arabia. into two of the latest global industrial the condition of both Saudi individuals launched the second Jubail Industrial company in the world. hope that the council’s Prince Saud gave a speech addressing centers. The company’s permanent and companies,” he added. City (Jubail-II) and laid the foundation SABIC has 20 industrial complexes in SABIC’s development to date and its exhibition also sheds light on the Al-Jashi said the Saudi economy has for 22 mega industrial and development Jubail, Yanbu and Dammam in addition cooperation will continue strategic plans and future investments. different sectors of the company, its been making tremendous advancement projects in the city involving a total to its participation in three industrial with SABIC in the interest He pointed out its increasing products and prospects offered to the in recent years. capital investment of nearly SR224 ventures in Bahrain. of Saudi Arabia. contributions in supporting the national downstream industries.

4 SABIC July/August 2008 SABIC July/August 2008 5 SABIC NEWS S SABIC, Sinopec sign strategic SABIC to market Saudi Aramco’s cooperation agreement Chinese joint venture products Saudi Basic Industries Corporation (SABIC) and China Petrochemical Sino Saudi Aramco Company, a The signing ceremony was attended through this momentous step we Corporation (Sinopec) signed in Jeddah wholly owned subsidiary of Saudi by Abdallah S. Jum’ah, Saudi Aramco are taking together with SABIC.” on June 21 a strategic cooperation Aramco, signed a mutual cooperation President and CEO, and Mohamed Al- Jum’ah added: “In itself, this agreement to expand the scope agreement with SABIC Shenzhen Mady, SABIC Vice Chairman and CEO, agreement constitutes, from the of partnership at Tianjin industrial Trading Company, a SABIC subsidiary in addition to a number of senior Kingdom’s perspective, an extra complex, China, currently under in the Peoples Republic of China. officials of both the companies. relative advantage for SABIC, construction. Under the agreement, which Speaking about the agreement which grants it the right to market The agreement signed during the was signed at the Saudi Aramco Abdallah Jum’ah remarked: “Last polyolefins in support of Saudi visit of Chinese Vice President Xi headquarters in Dhahran, SABIC year, we celebrated with Sinopec, investments abroad. We believe this Jinping is designed to expand the Shenzhen will market Saudi Aramco the government of Fujian district cooperation between Saudi Aramco heads of agreement (HOA) signed by Sino’s 25 percent share of polyolefin of China, and ExxonMobil, the and SABIC will, in the future, add the two companies on January 31, products, produced by the Fujian official inauguration of our value to the Kingdom’s internal and whereby SABIC will have 50% of the Refining and Petrochemicals joint processing venture in external investments.” Tianjin complex joint venture together Company. Fujian, the Fujian Refining and In turn, Mohamed Al-Mady, said: with a feasibility for adding a new It was signed on behalf of Saudi Petrochemicals Company Ltd. ”The agreement signed between product (polycarbonates) by using raw Aramco Sino Company Ltd., by Khalid which is considered to be the first Saudi Aramco and SABIC is a materials produced at the complex G. Buainain, Saudi Aramco Sr Vice ever refining and petrochemical qualitative leap in the history of based on SABIC Innovative Plastics Prince Saud bin Abdullah bin Thenayan Al-Saud and Su Shulin greet each President, Refining, Marketing and industries integrated project to be Saudi industrial development. The technology. other after the signing ceremony. On right is Mohamed Al-Mady. International Operations, and on behalf established with a foreign company agreement incarnates the integration The agreement also called for joint of SABIC Shenzhen Trading Company in China. And here we are today between two giants each occupying work in other future projects in China Ltd by Eng. Mutlaq Al-Morished, SABIC ready to harvest the fruit of this a pioneering position worldwide, depending on each party’s capabilities, Vice President, Corporate Finance. new investment with our partners, the first in the field of oil industries in addition to cooperation in certain areas such as engineering services, project implementation, R&T, product marketing, and material procurement.

The agreement also called for joint work in other future projects in China depending on each party’s capabilities, in addition to cooperation in certain areas Prince Saud and Al-Mady with Su Shulin at the signing ceremony.

The overall production capacity of economy. SABIC plans to set up a Prince Saud bin Abdullah bin the complex will be approximately 4 manufacturing center in China to Thenayan Al-Saud, Chairman of the million tons of different petrochemical boost its presence in Asia where China Royal Commission for Jubail and Yanbu, products including 1.2 million tons of represents the biggest market in the SABIC Board Chairman signed for ethylene and other products such as Asian continent. This ensures that SABIC SABIC while Su Shulin, Sinopec Board poly propylene (PP), butadiene, phenol, is as close as possible to its customers Chairman signed for his company. and butene-1. through its products and services. The complex is expected to be China is the biggest world This move follows SABIC’s ambition to completed in September 2009 with petrochemical market in light of high realize its vision “To be the preferred investments exceeding $2.5 billion. growth rates realized by the Chinese world leader in chemicals.” The signing ceremony at Saudi Aramco headquarters.

6 SABIC July/August 2008 SABIC July/August 2008 7 SABIC NEWS S Al-Mady highlights Saudi-Chinese relations

SABIC Vice Chairman and CEO two-way trade,” he said. refined products while China has Mohamed Al-Mady gave a keynote With China’s growing demand for oil, benefited from its large exports of speech at the Financial Times he said, it is quite natural for China and manufactured products. China-Middle East Summit, held in Saudi Arabia to trade in crude oil and On SABIC’s growing business in China, Riyadh on May 5, outlining the refined products. Saudi Arabia is the he pointed to the company’s strategic partnership Saudi Arabia number one supplier of crude oil to recent Heads of Agreement with has with China. China, providing some 528,000 Sinopec worth US$1.7 billion to build Al-Mady said that Saudi Arabia’s barrels per day in 2007 and targeting petrochemical plants in Tianjin. large hydrocarbon resources made the for larger volumes in the future. “This will be SABIC’s first joint venture Kingdom a “natural strategic trading Making a comparison between the in China and we hope this will lead to partner” for China’s dynamic industrial economies of the West and the East, more joint ventures and a strong and economic growth. Al-Mady said: “Economic growth relationship with Sinopec in the In a speech, entitled ‘Saudi Arabia and statistics and trade balance data important China market,” he said. China: Natural Partners in the Global indicate that economic momentum is Speaking about SABIC and Economy’, Al-Mady said that China’s shifting eastward. China alone globalization, Al-Mady said that the rapidly growing population provides has been experiencing GDP growth of company made a decision some years important markets for Saudi Arabia’s 10-12% for a number of years and ago, to transform itself from a strong growing petrochemical industry. experienced a positive trade balance regional player to a major global “Saudi Arabia and China are indeed of US$265 billion in 2007.” player. More recently the company’s natural trading partners supported by Saudi Arabia, Al-Mady said, has strategic plan to the year 2020 sets Key SABIC and Saudi Aramco executives at the signing ceremony. cooperative political ties. The benefited from the growing a target for SABIC to be among the geographic location of the partners demand for energy products: very top tier of companies in the permits an economic pathway for crude oil, natural gas, LPG, and industry, he said. The agreement signed technological aspects in a way that agreement is expected to start with will accelerate national industrial the commercial startup of the project between Saudi Aramco development and maximize the gross in the second quarter of 2009.” and SABIC is a qualitative domestic product.” The agreement is regarded as Khalid Buainain, for his part, one of the significant pillars in the leap in the history explained that the marketing progress of the strategic partnership of Saudi industrial studies, conducted by Sino Saudi between SABIC and Saudi Aramco. It development… Aramco Company Ltd, showed that is expected to boost and support the the distribution and marketing strong leading position of SABIC in I look forward to this of the polyolefins production of the field of production and marketing agreement to serve as Fujian Refining and Petrochemicals of polyolefins, worldwide. Company would cover a large base Through its representative, Saudi a launching pad for of customers inside China. The two Aramco Sino Company Ltd, Saudi more extensive strategic parties agreed that this task should Aramco holds a 25% interest in cooperation between the be undertaken by SABIC through a the refining and petrochemical polyolefins marketing agreement, joint venture along with Fujian two companies. on account of SABIC’s local and Petrochemicals Company of China, – Mohamed Al-Mady foreign experience in petrochemical a subsidiary of Sinopec Corporation marketing.” and the Fujian Government, which and the other in the area of the He added, “This agreement owns a 50% stake, while ExxonMobil petrochemical industry.” will underscore the depth of the owns 25% through a subsidiary. He added: “I look forward to this cooperation between Saudi Aramco The project’s products will agreement to serve as a launching and SABIC to maximize the benefit include such polyolefins as Liner pad for more extensive strategic of their investment projects in low density polyethylene (LLDPE), cooperation between the two the best interest of the Saudi with a production capability of companies. SABIC has anchored its economy. Saudi Aramco’s share in 400,000 tons annually, and high success over the years on its close the products to be marketed by density polyethylene (HDPE), with a cooperation with Saudi Aramco. We SABIC will amount to 320,000 tons production capacity of 400,000 tons are looking forward to promoting annually, representing 25% of the annually. The project will also produce this cooperation to include total production of the joint venture polypropylene (PP), with a production various industrial, marketing and in China. Implementation of the capacity of 470,000 tons annually. SABIC Vice Chairman and CEO Mohamed Al-Mady speaking at the Financial Times China-Middle East Summit held in Riyadh on May 5

8 SABIC July/August 2008 SABIC July/August 2008 9 SABIC NEWS S

KEMYA wins King Abdulaziz Quality Award SABIC exceeds all records reporting

The Jubail Petrochemical Quality Award. It is given to those management in the application of SR 14.5 billion profit for first half Company (KEMYA) has enterprises that achieve the highest international quality regulations and won the King Abdulaziz quality standards. standards. SABIC reported preliminary These results are SABIC’s highest- volume of production and sales by Quality Award in the Entrants are required to meet the The award reflects SABIC’s consolidated net profits of SR 14.5 ever reported profits in one quarter. 5 and 6 percent respectively. This is “large productive enterprises sector.” national objectives of Saudization, the commitment to total quality across billion for the first six months ending Net profits reported in this quarter despite the hike of raw material prices The award is comparable to development of human resources and all production, marketing and June 30, 2008 compared with SR 12.8 amounted to SR 7.54 billion compared owing to the rise of oil prices and the other global awards such as the US community services. technical areas. billion in the same period in 2007, an with SR 6.47 billion in the same period slowdown of major economies.” Malcolm Baldrige National Quality KEMYA’s milestone is attributed to There were 102 entrants for the increase of 13 percent. SABIC’s share last year, an increase of 17 percent. Al-Mady added, “The SABIC Board of Award, the Japanese Deming Quality the hard work of its employees, and the award, and KEMYA shared it with the profit amounts to SR 4.82 compared Mohamed Al-Mady SABIC Vice Directors, under the chairmanship of Award and the European Union continuous support of the company’s Advanced Electronics Company. with SR 4.25 for the same period last Chairman and CEO said, “ The total Prince Saud bin Abdullah bin Thenayan year (based on the number of the revenues as at June 30, 2008 stood at Al-Saud, has approved the distribution existing 3 billion shares), an increase of SR 83 billion, a growth of 54 percent of SR 5.25 billion cash dividends to the 13 percent. compared with the same period last company’s shareholders for the first SABIC also reported preliminary year. This is primarily attributed to half of 2008, at SR 1.75 per share. Date SAFCO, HADEED in flat steel consolidated operating profits of SR 23 combining SABIC Innovative Plastics’ of profit eligibility for the shareholders billion for the first six months of 2008, results in SABIC’s financial statements registered in Tadawul will be the production agreement compared with SR 19.2 billion for the for the current period. This is in closing of trading on July 23. Payment same period in 2007, an increase of 20 addition to the improvement of sales of dividends will take place on August percent. prices of key products, rise of the 4, 2008.” SABIC affiliates, the Saudi Arabian Fertilizer Company (SAFCO) and the Saudi Iron and Steel Company (HADEED), have signed an agreement to construct a 50:50 owned facility in Jubail Industrial City for the production of 1.7 million tons/year of flat steel products. In addition, HADEED will construct a rebar and wire rods production facility to SABIC Innovative Plastics add 500,000 tons/year. The gas used by SAFCO’s plant in Dammam, which is due to be closed in two months in response to a royal decree, will be utilized in the new flat steel products at Euro 2008 facility. The Ministry of Petroleum and Mineral Resources has also allocated additional quantities of gas for this project. SABIC welcomed Europe’s football SAFCO has also reached an agreement with SABIC affiliate, the Saudi Methanol masses under its roof as the UEFA Company (AR-RAZI). Under the agreement, AR-RAZI will make use of the gas European Football Championship allocated to the Dammam plant to produce methanol for SAFCO till the flat steel (Euro 2008), kicked off in June. products facility is constructed. The construction is estimated to take four years. SABIC Innovative Plastics’ high Mohamed Al-Mady, SABIC Vice Chairman and CEO and Chairman of SAFCO, said performance Lexan Thermoclear sheet that such agreements will positively impact the results of the companies and help is used for the roofs of four renovated or SAFCO maintain profitability. newly built stadiums for the Euro 2008 He said: “They will contribute to promoting the steel industry in the Kingdom, championship, taking place in Austria with the new capacities amounting to 2.2 million tons/year, which represents and Switzerland from June 7 to 29, 2008. an annual increase of 28 percent of the Kingdom’s steel production. This will These include the Tivoli NEU Stadium meet some of the products which are imported and currently required for the in Innsbruck, Salzburg Wals-Seizenheim construction and downstream industries now and in future.” Stadium in Salzburg, Wörthersee Stadium in Klagenfurt, all three based in Austria, and Stade de Suisse Wankdorf stadium in Bern, Switzerland. roofing for large, complex structures “By choosing high-performance The Wankdorf facility will feature 4,000 like stadiums: light weight, high impact Lexan Thermoclear sheet, designers and square meters of Lexan resistance, and the ability to be easily architects can achieve the clarity Thermoclear sheet, and the Austrian formed into compact shapes. of glass while overcoming its stadiums will be glazed with more than “Many demands are placed upon new drawbacks of heavy weight, design 30,000 square meters of sheet. sports stadiums and arenas, including restrictions and fragility. The properties This versatile thermoplastic glazing safety, comfort, durability, and design of Lexan Thermoclear can be enhanced material, which has been used in arena excitement,” said Michel van Acht, build- with special coatings and tints for roofing and other glazing for more than ing and construction industry manager aesthetics, excellent weathering 25 years, delivers a unique for Specialty Film & Sheet, Europe, SABIC performance, improved light combination of advantages in Innovative Plastics. transmission, and easy maintenance.”

610 SABIC SABIC May/June July/August 2008 2008 SABIC July/August 2008 11 SABIC NEWS S SABIC hosts reception for SABIC takes part in Annual Meeting customers in Tunisia of Oil & Gas SABIC took part in the 8th Annual SABIC held a reception and dinner for Tunisia in general. SABIC’s delegation customers about SABIC’s projects, Meeting of the Oil & Gas Pipelines in the more than 100 customers in Tunis on paid visits to a number of major clients expansion activities and to further Middle East held in Abu Dhabi May 12. Abdul Salam Al-Mazro, Vice of the company in the Tunisian market. consolidate the company’s presence from May 12-14. President, Polymers sponsored the The objective of this tour was to brief in Tunisia. The meeting provided oil and gas event and delivered a speech pipeline operators and specialists with welcoming the guests. the opportunity to network with the Al-Mazro praised the fruitful world’s leading technology companies collaboration that exists between the to discover the latest in pipeline company and its customers and spoke technical innovations. about SABIC’s current and future Omar Suwaina, Onshore Division projects. A documentary film on the Manager, Exploration and Production Polymers SBU was screened on the Directorate, Abu Dhabi National Oil occasion. Company (ADNOC) gave the welcome The reception had a positive impact address on the first day. on SABIC’s customers who felt that The various sessions focused on the such initiatives would consolidate trade strategic outlook for the ME pipeline ties between them and SABIC, besides sector and pipeline project challenges, contributing to strengthening of technical development, management relations between Saudi Arabia and and planning. SABIC Metals SBU participated in the exhibition and displayed information on manufacturing technologies. HADEED wins RoSPA Gold Medal SABIC was a key participant in this event through Metals SBU, which was represented by Dr. Khaled Al-Hajeri whose presentation titled “Recent Developments in Pipeline Steel Making in SABIC” was well received by the participants. HADEED has been awarded the Gold This year’s conference attracted Medal from the Royal Society for the experts from all the GCC countries, Prevention of Accidents (RoSPA). as well as Algeria, India, and Turkey. Established over 80 years ago, RoSPA Leaders in Oil & Gas industry such as is one of the world’s leading health ADGAS, Saudi Aramco, ADNOC, GASCO and and safety organizations. Every year it Qatar Petroleum attended the meeting. invites companies from all sectors and from all over the world to participate in the Occupational Health and Safety Awards Scheme. The Gold award is presented to SAFCO reports SR 1.9 billion profit for first half companies that achieve a very high Mohamed Al-Mady, SABIC Vice Chairman which were SR 820.4 million. SAFCO’s net profits in 2Q2008 level of health and safety performance. and Chief Executive Officer, and SAFCO amounted to SR 1.190 billion compared with SR 530.3 The Gold Medal award is presented Chairman and Managing Director, said million in the same period last year, an increase of 124.5 to only those organizations which have the Saudi Arabian Fertilizers Company percent. This increase is due to the hike in sales volume and been awarded the gold award (SAFCO) reported net profits of SR 1.914 billion during the improvement in the prices of key products. consecutively for five years. first six months of 2008, compared to SR 850.1 million in the Al-Mady commended the efforts of SAFCO’s board and HADEED has been receiving the Gold same period in 2007, an increase of 125 percent. employees and said he looked forward to achieve more award since 2004. The distinction The company’s share profit amounts to SR 7.66 compared milestones. proves once again HADEED’s continuous with SR 4.25 in the same period of 2007. Earlier, SAFCO announced distribution of SR 1.5 billion commitment towards the best global Al-Mady said, “SAFCO’s operational profits during the first dividends for its operations in the first half of 2008, at SR 6 safety standards six months of this year stood at SR 1.697 billion, an increase per share for the shareholders registered on Tadawul as of of 107 percent over the profits of the same period of 2007, July 13, 2008.

12 SABIC July/August 2008 SABIC July/August 2008 13 SABIC NEWS S

NEWS IN BRIEF SABIC participates in building SABIC takes part in QATAR2008 exposition Technical symposium for SABIC customers in Morocco exhibition in Abu Dhabi SABIC had a strong presence at the bin Khalifa Al Thani, Minister of construction sector in the Kingdom QATAR2008 exposition which was Municipal Affairs and Agriculture in and other Gulf countries. organized as the 5th International Qatar, on April 7. A comprehensive presentation was Trade Fair for the construction Nearly 700 companies from 36 made to him on the company’s technologies, materials and equipment, countries in construction and production capacities, expansion and environmental protection environment technologies, materials activities and SABIC’s global markets. industries at the Doha Exhibition and equipment participated in this The SABIC pavilion showcased Centre in Qatar. four-day exposition. samples of HADEED’s products Polymers SBU held a two-day technical The event was patronized by During his visit to the SABIC Pavilion, including iron bars, wires, and hot symposium on April 16 and 17 in Sheikh Hamad bin Jassem bin Jabr Sheikh Abdul Rahman bin Khalifa rolled, cold rolled and galvanized flat Morocco. It was titled: “Injection and Al-Thani, Prime Minister and Minister appreciated the quality of the steel. Many visitors interested in steel blow molding: applications, processing of Foreign Affairs of Qatar, and was company’s steel products and its industries from the Gulf and the rest of and troubleshooting”. Seventy six launched by Sheikh Abdul Rahman contributions made towards the the world paid visit to the SABIC pavilion. engineers, from 60 of SABIC’s customers in Morocco, attended this event. The symposium was part of a series of technical seminars which SABIC SAUDI KAYAN signs holds in and outside Saudi Arabia to SABIC expands strengthen relations with customers and provide support to them. thermoplastics contract for Training program concludes polycarbonate plant at PETROKEMYA in Korea The Arabian Petrochemical Company SABIC, represented by its Metals SBU, took part in BATIMAT’s Building Futures Gulf SABIC affiliate, Saudi Kayan Petrochemical Company (SAUDI (PETROKEMYA) celebrated the graduation exhibition and conference at the Abu Dhabi National Exhibition Center from April KAYAN), signed a US$1.3 billion contract for the construction of 17 trainees who are holders of 20 -23. About 225 companies and building industry players from 26 countries of a polycarbonate plant with the Korean Daelim Industrial secondary school certificates and have participated in the event. Co. The value of deliverables and equipment for out-of- completed a technical training program Juma’a Mubarak Al-Junaibi, General Manager, Abu Dhabi Municipality, inaugurated Kingdom work now amounts to US$888 million. to qualify for joining the workforce and the exhibition. He visited the SABIC pavilion where he was briefed on the company’s Balance value represents in-Kingdom construction work. commence on-the-job training. product portfolio and applications. The pavilion saw a large turnout of visitors Mutlaq Al-Morished, Chairman of SAUDI KAYAN and SABIC PETROKEMYA also honored 18 other from various construction sectors. By participating in the exhibition, SABIC further VP, Corporate Finance, said that the total annual production trainees who completed an English strengthened its regional presence and demonstrated its commitment to the Gulf capacity of this plant is 260,000 tons of specialty products language training program. market, especially the construction sector. which will be produced for the first time in Saudi Arabia. The ceremony was held at the Training Delivery and construction are expected to be completed Center of the Industrial Energy by early 2010. Academy in Al-Jubail. Managing Board’s new members E&PM organizes technical presentations for KFUPM students Mosaed Al-Ohali recently joined the SABIC Engineering and Project Managing Board of SABIC Europe in Management (E&PM) department the position of Chief Operating Officer organized technical presentations for and Managing Director Chemicals and 29 senior chemical engineering Intermediates and Huub Meessen will SABIC Innovative Plastics, Bergen op Zoom, Netherlands, students from the King Fahd University join the Managing Board as Managing has started up a new production line at its Korean of Petroleum & Minerals in Jubail on Director Polymers. facility in Chung-Ju for thermoplastics with long-glass- May 13. These presentations were held They succeed Abdullah Bazid and Koos of the Strategic Business Unit fiber reinforcements. at the Design Management Department. van Haasteren, respectively, who both Fertilizers (2004-2006) and President of The facility is to produce 20 different filled grades based The department shared its experience have been appointed in positions at SABIC’s joint venture with Shell, SADAF on PP, PA and PPA, among other resins. on process flow development and cost SABIC Headquarters in Riyadh. (1999-2004). These materials are needed above all for the rapidly estimation with the students. This is Al-Ohali joined SABIC in 1984 and has Meessen joined DSM in 1987 and has growing automotive, telecommunications and electrical part of E&PM’s objectives of sharing held several positions within the company. held several positions in the polyolefins equipment sectors in Asia. industrial knowledge with higher Most recently he was Vice President of business. He became Director Demand The goal of SABIC Innovative Plastics is to drastically institutions to develop fruitful relations the Strategic Business Unit Specialty Chain Management in 2001 and since reduce lead times for filled grades by having production with the academic community. Products (2006-2008), Vice President 2004 he was Director Business Unit LL/LDPE. facilities and resources.

14 SABIC July/August 2008 SABIC July/August 2008 15 SABIC NEWS S

Al-Mady attends Microsoft CEO Summit SABIC takes part in Career NEWS IN BRIEF Day in Dammam SABIC R&T sets safety record SABIC R&T completed 13 million man-hours SABIC participated in Career Day at the Dammam Community College of the King without a lost workday on May 8 and Fahd University of Petroleum and Minerals on May 6 and 7. set a new record. R&T also recently Fifteen government and private sector establishments participated in the event won the third prize in SABIC’s SHE which was inaugurated by Dr. Khaled Al-Sultan, Rector of KFUPM. Dr. Khaled (safety, health, environment) contest. toured the SABIC pavilion and listened to a briefing on the company’s products Dr. Abdul Rahman Al-Ubaid, VP (R&T) and its experience in the Saudization process. thanked all the staff and called upon Many college students also visited the pavilion enquiring about available job them to continue to maintain high opportunities in SABIC. Dr. Mohammed Qarawan, Dean of the college, welcomed safety standards. He stressed on the the participants and presented a commemorative plaque to SABIC. need to exert more efforts and achieve greater results in the future.

Sinopec visits UNITED A high-level Chinese delegation from Sinopec visited Jubail United Petrochemical Company (UNITED) and was received by its President Abdullah Muqbil Al-Qara’awi. He welcomed the guests and made a presentation on the company, its products, technologies used in manufacturing processes, and efforts made in the areas of safety, health, environment and human resources development. The delegation took a field tour of the UNITED facility.

Al-Mady with Bill Gates, then Chairman of Microsoft SAUDI KAYAN completes 15 million man-hours without injury Mohamed Al-Mady, SABIC Vice Chairman and CEO, was to discuss the most pressing issues affecting global business SAUDI KAYAN completed 15 million among the 115 CEOs from 1,000 global companies in 26 today. The CEOs who gathered at the Microsoft campus man-hours without lost time injuries countries who attended Microsoft Corporation’s 12th annual discussed several topics that included decoding financial Technical workshop for on May 7, thanks to its high safety CEO Summit held in Redmond, Washington, from May 13 markets, establishing cultures of execution and exploring standards. Mazyad Al-Khaldi, GM, E&PM to 15. Established in 1997, the forum allows business leaders how the internet will evolve over the next five years. polypropylene customers hailed the landmark and congratulated all employees, technicians and contractors. He appreciated their SABIC Technical Support organized efforts, hard work and dedication. a two-day technical workshop for SABIC premieres at Plastpol polypropylene customers at the SABIC E&M organizes workshop Technical Services building in Riyadh SABIC Engineering and Project For the first time, the SABIC family of infrastructure, geo-membranes, foam, strongly in the local market and build on May 5 and 6. Management (E&PM) organized a plastics businesses, including SABIC and film. SABIC offers Polish more direct relationships with customers Engineers, technicians and specialists workshop titled “Best Practice for Innovative Plastics and SABIC Europe, customers a strong local team, local in the region,” explained Hubert Guth, working in the field of plastic products pressure relief systems verification, showcased its diverse plastics portfolios supply of materials, and the extensive Director Sales Offices SABIC Europe. manufacturing attended the event. design, analysis and management”, and technology innovations for key resources of its Global Application Piotr Kwiecien, Sales Office Captain, The workshop was part of a series jointly with Siemens. This was part of Polish industries at Plastpol which ran Technology (GApT) centers to support SABIC Poland, added: “The Polish of workshops and seminars being SABIC E&PM goals, to share knowledge from May 26-29 2008. in-country application development. polyolefins market is the largest market organized by the Technical Support Dr. Ezz Al-Din Kyul, Mohamed and keep the staff updated on latest SABIC’s presence at the event “SABIC has a long-term growth in Central and Eastern Europe. Section. Speaking on the occasion, Masfoh and Jalal Bahri of the technologies. It is the third workshop underscores the importance of the strategy for Central and Eastern Europe, “SABIC is looking to grow even faster Mohamed Abdul Jabbar said Technical Support and Dowaihi organized by E&PM to engage and Polish market in its Emerging Markets where growth in polyolefins in the than the local market, helped by the that SABIC is proud of its business Al-Otaibi Azavihi of the Polymers expose SABIC and its affiliate staff to strategy. coming years is predicted to be more import of extra volumes of LDPE, LLDPE relations with customers even as the Laboratory made comprehensive learning opportunities. Seventy Major Polish markets into which SABIC than 15 percent. and PP from plants coming on-stream company continues its efforts to presentations on the participants from SABIC and its materials are sold include automotive, Our presence at Plastpol 2008 will in the UK and Saudi Arabia in the very develop knowledge culture within characteristics and applications of affiliates attended the one-day electrical and lighting, pipe and allow us to position SABIC more near future.” the plastic industry. polypropylene. workshop held on May 6 in Jubail.

16 SABIC July/August 2008 SABIC July/August 2008 17 SABIC NEWS PRODUCT INNOVATION S

Projected timeline: New high-speed ‘Clean’ plastics solution for the semicon By September, the new network will be industry in place providing employees with network will connect a number of benefits: SABIC Innovative Plastics’ LNP become finer, the • File-sharing – All employees will be SABIC globally able to use file sharing across the three Specialty Compounds business has effect of contaminants entities, making collaboration on developed Ultra-Pure Transparent (UPT) from plastic outgassing projects and data easier. Stat-Loy 63000CT series compounds is more pronounced. to speed up the adoption of ArF lasers, If volatile organic • “Meeting Place,” an easy-to-use system by addressing the lack of sufficiently compounds (VOCs) or to host conference calls, will be in “clean” plastics used in protective leachable ions reach place globally. Initially SABIC containers (photomasks and reticles) the surface of silicone Innovative Plastics (which currently for the IC manufacturing process. wafers, photomasks or uses the system) will be able to As consumers demand more power reticles, they can host calls, and soon after (planned and functionality from electronics, the damage the device or Q1 2009), all entities will have the semiconductor industry strives to fit disrupt functionality. ability. more functionality onto existing The use of higher- • Access from any SABIC location – integrated circuits, or “chips” powered ArF lasers TAC Carrier MEMS Case Using SABIC Innovative Plastics’ UPT Stat-Loy Compounds All employees will be able to access The next-generation of chip makes wafers and the network from any SABIC location manufacture is a photolithography containers even more susceptible to worldwide, no more special set-ups process using argon-fluoride (ArF) damage from outgassing. “The developed the UPT Stat-Loy 63000CT required. laser technology. inadequacies of available container compounds to help remove a major The Information Technology (IT) team sharing – the most important and However, used in wafer protection materials impeded the move to ArF hurdle in the miniaturization of After the network is installed, IT can then working as part of Integration Program fundamental goal of IT systems, devices, UPT Stat-Loy compounds can laser light for years,” said Yeo Aun components. begin to combine key applications onto it: SABIC has placed an order for a new, Baggan explains. prevent damage from outgassing that Hua, LNP product manager, SABIC “Our R&D efforts and commitment high-speed network that will make it “For example, SABIC is launching all can contaminate wafers, increase Innovative Plastics. “Recognizing that to innovation will help enable IC • Email by year-end – All company email much easier for employees throughout kinds of good initiatives, like the rejects, and raise costs. upgrading to this new technology is foundries to leverage ArF lasers to functions will be integrated by the end of the year. Once completed we the SABIC world to connect, share and learning portal. This was started in IC manufacture demands stringent critical for IC manufacturers, SABIC provide extremely fine circuitry down will share the full capabilities of collaborate electronically. the Kingdom, and the company wants clean room procedures. As pitches Innovative Plastics proactively to 45 nm and below.” Outlook, including calendar sharing, This network will provide substantial to spread it out. But if we don’t have viewing employee details in the new bandwidth linking company enough connectivity, to make this address book, and free/busy time intranet hubs in Saudi Arabia, The happen we would have to install visibility. Netherlands and the U.S. duplicate systems. Our new network Luxurious looks with decorative chrome IT expects to have the network in connections will enable us to move • Access across all three intranets – place by September. Combining key fast to spread our knowledge plating is new trend Global Intranet sites for use by all applications onto the system, including throughout global SABIC.” companies will be available in Q4. This email, calendars and employees’ access The new network will also make it extremely low stress and superior great way to give passenger vehicles will include existing web sites that have to all business intranets, will then be easier for employees to collaborate on adhesion to the metal layer, are a more upscale look, and the best not been accessible outside of each business. completed by year-end. fast-moving issues and opportunities aimed at helping automakers easily approach today is the use of “We will have a seamless work worldwide. incorporate jewel-bright chrome metallized plastic – for simplicity, • Instant messaging – Instant messaging environment among the three “To be a global leader we need to be details into their designs. weight savings, and design freedom,” solutions will begin rolling out in Q4, companies - wherever you are in the able to operate in a ‘virtual’ manner in SABIC Innovative Plastics has a long said Dirk Noordegraaf, Operations continuing through 2009. Users will SABIC world, you will be at your office,” tune with our global footprint,” agrees history of working side-by-side with Manager, Application Technology, be able to engage in instant messaging says Masoud Al-Amiri, General Alex Durant, SABIC Innovative Plastics’ leading automotive OEMs and SABIC Innovative Plastics. with others who have the same Manager, IT Services, SABIC HQ. Chief Technology Officer. suppliers to help them achieve “To help the auto industry capability across the businesses. “This will help give us the productivity “The new network and all of the SABIC Innovative Plastics introduces competitive differentiation through leverage the popularity of chrome as one larger, connected company.” applications we can build into it will its latest portfolio of breakthrough new design options. effects with optimal results, SABIC • Videoconferencing – Reliable Paul Baggen, ICT director for SABIC help our global team to move faster materials that have been optimized Special grades of Cycoloy Innovative Plastics is working videoconferencing from all locations, Europe, explains that today, SABIC in all our markets.” for chrome plating. polycarbonate/acrylonitrile- with local customers to develop with no more dropped signals. (Planned Q1 2009.) Europe, SABIC Innovative Plastics and And, the new bandwidth will make it One of the hottest trends in butadiene-styrene (PC/ABS) resin materials that deliver the elegance SABIC HQ share connectivity of just possible to share informational automotive design is the resurgence and Cycolac ABS resin have been of chrome effects without all the “one-quarter of a megabyte, which is technology enhancement moving of chrome in trim, door handles, and optimized by SABIC Innovative challenges. very poor.” The new 45 megabyte forward, saving money and leading to other decorative touches to impart a Plastics experts for both the injection “With our Cycoloy and Cycolac system will operate 180 times faster. greater productivity with our hardware high-end, luxury look. molding and plating processes to resins, designers are able to provide With connectivity comes knowledge and software purchases, Al-Amiri adds. These specialized grades of deliver high quality and high yields. the fashionable details consumers Cycoloy and Cycolac resins, featuring “The use of a chrome effect is a are clamoring for,” said Noordegraaf.

18 SABIC July/August 2008 SABIC July/August 2008 19 PRODUCT INNOVATION INDUSTRY NEWS S

SABIC Innovative Plastics reaches for OPEC outlines downstream expansion higher environmental standards OPEC countries are investing more than India and China in determining not US$50billion in improving their down- only the future direction of the oil stream industries, through establishing market but the downstream industry Taking existing environmental new projects including petrochemicals, as well. restrictions, such as the European according to ICIS news. Established in 1977, the International Union’s Restriction of Hazardous OPEC countries will increase their Association for Energy Economics (IAEE) Substances (RoHS) directive, a step Die/cut insulating downstream sector through the is an international non-profit farther, several global electronics parts made from expansion of existing plants or the professional organization whose manufacturers are voluntarily reducing EFR735 Film building of new capacities to total up members include business, government, halogenated additives in their products to an extra 3m bpd (barrels per day) academic and other professionals to benefit the environment. of output. concerned with energy and related In an effort to support this, SABIC The report quotes Dr Fatih Birol, chief issues. EAEE, the UAE affiliate of IAEE, Innovative Plastics has introduced EFR “Our first non-halogenated flame- “We are confident that our EFR 735 economist at the International Energy was set up in August 2007. 735 film, the company’s first retardant film has a dual purpose – film will make it easier for them to Agency, as emphasizing the role of thermoplastic film made without the to help electronics customers achieve this goal while also benefiting use of brominated or chlorinated effectively take a strong stand on from enhanced performance and cost flame-retardants. environmental protection, and to savings from down-gauging.” EFR 735 film demonstrates how SABIC expand our robust portfolio of EFR 735 film is an excellent candidate China launches Innovative Plastics works closely with environmentally responsible for shielding and insulation barriers, Japan seeks green customers to create environmentally materials,” said Josh Ayer, Global printed circuits, die-cut spacers and anti-dumping responsible materials that comply with Product Manager, Film, SABIC insulators, labels, and overlays. technology both existing and upcoming electronics Innovative Plastics. “We applaud major It is also well suited for adaptors for industry standards. electronics manufacturers that are computers, laptops, mobile phones, investigation The new EFR film also supports the demonstrating their environmental portable devices, battery packs, DVD trend towards smaller, thinner devices concern by limiting or banning players, printers, appliances, audio/video China has started an anti-dumping investigation on by delivering high performance at very potentially harmful substances from equipment, and many other electrical dimethyl cyclosiloxane from Korea and Thailand, thin gauges. their products and processes. and electronics applications. according to an ICIS news report. The inquiry will focus on dumping profit margins and the influence on the Chinese dimethyl cyclosiloxane industry, according to a quoted official from the Ministry of Commerce. Material breakthrough with Dongfeng The ministry received a petition from domestic producers China National Blue Star New Materials and Peugeot’s first car for China Zhejiang Xinan Chemical Group on 22 April. The two companies were responsible for 72 percent of China’s The Japanese petrochemical industry is keen to develop new Auto body panels molded from SABIC For more than seven years, Peugeot coated simultaneously alongside the dimethyl cyclosiloxane total output in 2007. technology to recover low-temperature exhaustion heat as Innovative Plastics’ high-tech Noryl GTX has used Noryl GTX resins for fenders body in white without the need for The investigation will end within one year unless part of a plan to protect the environment, according to resins continue to augment their global and other body panels in its French- a primer step. Noryl GTX resins have anything exceptional is found. Sumitomo Chemical President Hiromasa Yonekura. market penetration as automakers from made cars. Dongfeng Peugeot Citroen been selected for use by more than ten The HEART [heat recovery technology] project, which is a around the world increasingly seek the Automobiles (DPCA) now uses Noryl different OEMs around the world, and joint undertaking by the Japan Petrochemical Industry innovative, high-performance benefits GTX resin on the Dongfeng Peugeot more than 12 million cars have been Association (JPCA), of which Yonekura is the chairman, will the resins provide. 307 four-door sedan, its first model constructed with fenders or body reduce heat loss by 10 percent over 10 years. manufactured and sold exclusively in panels molded from the material. The sector approach is expected to save one percent of China, sporting front fenders made “SABIC Innovative Plastics supported energy consumption every year for 10 years. According to the with Noryl GTX resin. our team to make sure production of ICIS news report, the President said that 60 percent of the Conductive Noryl GTX resins for the Noryl GTX fenders went smoothly,” reduction - of greenhouse gases [GHG] emissions - needs to fenders and other body panels said Rémi André, general manager, be achieved through innovative new technologies. offer several major benefits, including Dongfeng Visteon Automotive Trim The other 40 percent reduction in GHG emissions will require weight reduction of up to 50 percent Systems. “The scope of their technical a global commitment of all major emitting countries vs. steel, increased freedom and flex- resources is notable in the industry. [including the US and China] and developing countries to ibility to design and mold complex Working together with SABIC establish a new framework contributing to both environmental parts, and the ability to be used in Innovative Plastics experts, we are able and economic growth. standard automotive body painting to offer our customer high quality Japan has developed a plan, under which it plans a 50 processes. in-line painting, an innovative process percent cutback on GHG emissions by 2050. The resins can be painted or powder- in China,” said Andre.

20 SABIC July/August 2008 SABIC July/August 2008 21 INDUSTRY NEWS COVER STORY S

Double digit India to hike polymer SABIC Innovative Plastics wins 2007 growth for imports to meet growing National ENERGY GLOBE Award China MCA demand SABIC Innovative Plastics has been “In 2003, SABIC flushed out to sea as waste water. Double-digit growth in the India is expected to be a strong importer of polymers in the next two years as named the national ENERGY GLOBE This facility went into production monochloracetic acid (MCA)/pesticide demand surges while the expansion of domestic production capacity lags, Award overall winner for The Nether- Innovative Plastics in 2007. By recovering and reusing sector in China is expected to prop up according to an ICIS news report quoting a representative from the Chemicals lands in recognition of its Brine Recov- opened a pilot facility 72,000 tons of sodium chloride from acetic acid demand, according to and Petrochemical Manufacturers’ Association. ery project in Bergen op Zoom, The in Bergen op Zoom to this “brine stream”, the company is ICIS news. Trade deficits are forecast to grow more than two-fold to 602,000 tons/year in Netherlands. projecting a 73 percent reduction in Areas in the northwestern parts of 2008 from 232,000 tons/year in 2007, and projected to rise a further 41.2 percent At the EU Parliament in Brussels, the recover and purify sodium chloride consumption, the China as well as Jiangsu and Subei to 850,000 tons/year in 2009. company was honored for its efforts sodium chloride that elimination of 8,900 tons/year of CO2 had witnessed substantial MCA and Polymer imports are expected to climb almost 10 percent year-on-year to in achieving significant environmental emissions, and a 10 percent reduction derivatives capacity expansion, a 1.10m tons/year in 2008 while import figures are forecasted at 1.57m tons/year benefits made possible by an previously had to be in waste water discharged into the sea. Jiangsu-based acetic acid producer in 2009, up 42.2 percent in the previous corresponding 12-month period. innovative brine recovery process, mined, transported, and “We take environmental responsibility reported, adding that the increase Increasingly, India is relying on the northeast and Southeast Asian region for its which purifies and re-uses salt in ultimately flushed out to very seriously and constantly look for amounted to 30-50 percent this year. polymer imports as the region’s share in India’s total imports rise to 48 percent polycarbonate (PC) production. ways to take a leadership role,” said This was fuelled by recent in 2007 from 35 percent in 2001. This sustainable process reduces sea as waste water” Heiner Markhoff, president, EMEA, developments in the fertilizers/ More specifically, in the polyolefins sector, a strong double-digit growth in sodium chloride use, waste water SABIC Innovative Plastics. “The Brine pesticide sector on the back of rising demand is also forecasted at 12 percent in 2007, 13 percent in 2008 and 13 generation, and carbon dioxide (CO2) world, recognizes extraordinary Recovery project is an outstanding grain prices and food supply concerns. percent in 2009; with LDPE, LLDPE, HDPE and PP demand to grow some 12-14 emissions. environmental efforts. Projects from example of how technological Producers anticipated healthy growth percent yearly across the board in 2008 and 2009. The project was subsidized by the all over the world that conserve and creativity combined with government for MCA applications in the pesticide Slow import growth trends, meanwhile, are expected to continue with a marginal EU Commission’s Life environment protect the Earth’s resources or employ partnership can make a major sector, which was expected to account rise to 671,000 tons in 2008 from 618,000 tons in 2007, and thereafter by 37.6 program with a grant of US$1.86 renewable energy are showcased. difference in several environmental for up to 20 percent of the acetic acid percent to 923,000 tons in 2009. million. Investment in eco-responsible The national awards are determined areas – conservation of natural market segment, up from 12-13 As for the olefins and aromatics businesses, demand for butadiene (BD) is forecasted solutions enables SABIC Innovative from entries submitted by country; resources, reduction of energy use percent in the previous year, they said. to grow at 80 percent in 2008 and 2009, while paraxylene (PX) demand looks set Plastics to provide customers with five projects were submitted from the and emissions, and less waste water to register strong 18 percent rise in the next two years, according to ICIS. state-of-the-art products while Netherlands. discharge into the ocean. minimizing the impact of In 2003, SABIC Innovative Plastics “We are grateful to the EU Life manufacturing processes on the opened a pilot facility in Bergen op program for the crucial support of environment. Zoom to recover and purify sodium this successful project.” The ENERGY GLOBE awards, the chloride that previously had to be India plans Middle East output has most prestigious of its kind in the mined, transported, and ultimately US$80.7 bn impact in Korea

South Korea will be affected by the showing downtrends in the second petchem hub increasing petrochemical production half. On the other hand, mixed-xylene capacities from the Middle East, which (MX) and paraxylene (PX) markets India’s federal government is planning will be broadened to cover ethylene are expected to be tighter in the to build an oil and petrochemicals and other derivatives, according to the second half with higher crude and industry hub in the southern Andhra Korea Petrochemical Industry Associa- naphtha prices affecting MX producers Pradesh state that would attract tion (KPIA). and Taekwang Industrial’s new purified investments worth INR3.43 trillion KPIA expects the olefins market in terephthalic acid (PTA) plant making (US$80.7 billion), according to the the country to see a tight first half and domestic supply tight. Economic Times newspaper. longer second half when domestic Polyolefin producers were expected The proposed investments in the plants would undergo expansions. to be the most seriously affected, with region include an INR319 billion With the growth in the polyolefin more Middle Eastern cargoes entering refinery and polypropylene project by market, domestic sales of olefins were China, the current net importer of state-run Oil and Natural Gas Corp. expected to rise, it added. South Korean cargoes. and a INR320 billion refinery and KPIA expected a better second half in South Korean producers are already petrochemicals complex by a consortium 2008 on the aromatics front, with heard to be diversifying the routes of comprising Hindustan Petroleum Corp., benzene and toluene hitting record their sales as one of the precautionary Total SA and Mittal Energy, the report said. highs in the first half of the year but measures against the rough times ahead.

22 SABIC July/August 2008 SABIC July/August 2008 23 SABIC APPOINTMENT S SABIC Innovative Plastics names new President and CEO The new head of SABIC’s specialty plastics business in the US, Charlie Crew, takes time off his busy schedule to explain to the group how the business will grow and develop.

SABIC Innovative Plastics has president and general manager of “Thirdly, I must work with the SABIC announced that Charlie Crew was commercial operations for GE Plastics leadership team and supervisory board promoted to President and CEO of Americas. team to ensure that our strategies at the company in May. Most recently Crew was Vice President SABIC Innovative Plastics are clearly Crew will lead the multi-billion-dollar and General Manager of SABIC communicated and the progress we engineering thermoplastics business Innovative Plastics’ global ventures are making is relative to our strategic with operations in more than 25 business. initiatives and clearly communicated.” countries and over 10,500 employees Crew stressed that in going forward worldwide. Crew succeeds Brian “My first priority is to SABIC Innovative Plastics must ensure Gladden who left the company to meet all employees that it continues to work inline with its pursue other opportunities. strategic initiatives, which are centered scale. With the purchase of GE Plastics radar. As Crew explains: “The growth Crew is a modest man, despite his “We are pleased to name a proven, across the business” around first a safe operation, second in 2007, which later became SABIC areas around the world are in China, company status. He stresses that the influential leader such as Charlie as integrity, third customer support, and Innovative Plastics, the group as a where we have a US$1.4bn success of the SABIC group, including President and CEO of our “This internal promotion underscores finally the innovation of new materials whole was able to expand its product business, Latin America, Eastern the Innovative Plastics division, has thermoplastics business,” said SABIC the depth of our management team to address emerging market needs and profolio. The purchase brought Europe, India, and Vietnam. been achieved through a group Vice Chairman and CEO Mohamed and the strength of our succession our customers requirements. specialty plastics to compliment “Our customers are going to these mentality and not the leadership of Al-Mady. “Charlie is well-known plan,” continued Al-Mady. “Now we are part of the broader SABIC base chemical foundation. emerging markets for access to market any one person. He said: “The most throughout the industry, and is a “Charlie is a seasoned executive with SABIC a new key initiative is Crew added: “This business or low labor costs – so we will continue important element of our success is highly respected leader across the more than 30 years in the plastics integration. This is a great compliments SABIC very nicely to grow into these regional growth the strong leadership team we have entire SABIC organization.” business, ensuring continuity of opportunity for us to learn from the especially in its polymers business. areas.” This growth is not only across the business. It has never been Crew has had a long and leadership within this critical business.” broader SABIC team, to participate “Our materials are involved in many geographical, it also includes growth one person, it has never been one CEO, accomplished career with the Within days of his appointment Crew with the product management office, applications that the traditional SABIC within the product portfolio and it has never been one guiding light, it company. He joined GE Plastics in 1977 took time out to speak to SABIC to drive integration faster and to zero materials are not – like higher temp ultimately the customer offering. has been a collective group of highly as an account manager, and over the magazine about his future plans. in on areas where we as a business at applications and higher electrical “We see tremendous growth skilled people across the business. years he has held a variety of roles of He said: “My first priority is to meet SABIC Innovative Plastics can performance applications. opportunities to replace traditional “Our leaders have wanted to change increasing responsibility. Crew was all employees across the business. In contribute to the process and get “SABIC in its 2020 vision looked at materials of glass, wood and steel with and our leaders have wanted to win. President and Chief Executive Officer a period of transition it is important benefits from the process,” he added. other materials, many of which we our materials that provide performance They have had a tremendous ability to of LNP Engineering Plastics, and served a new leader meets all employees to “There are a lot of opportunities and manufacture. So we provide the and lower energy consumption, lighter create and to reinvent business models. as Vice President and General Manager explain the transition and to have them I am excited about them.” specialty side of the portfolio. weights and greater durability. “Therefore, I am confident that as we of the Cycolac and Geloy resins and interact with you. Crew believes that there are This offers great opportunity for “We also work with customers at the go through this transition our global petrochemicals business. “My second priority is to meet key tremendous synergies between SABIC customers.”Crew sees a huge potential early design stage and help them employees have the desire to do better He led the European operations as customers who may be concerned Innovative Plastics and the main SABIC for the SABIC group to grow exponentially innovate and create new exciting every day and at the end of the day to president and senior managing about our commitment. We want to group. He has a clear strategy to in the coming years across the globe. markets, we help them develop make our customers more successful so Director of GE Plastics Europe, Middle emphasize that we are highly exploit these synergies and to ensure For the specialty plastics arm there are solutions, and we help them provide that we can be more successful,” East, and Africa, and was also vice committed. the integration creates economies of specific regional growth areas on the differentiated products.” he concluded.

24 SABIC July/August 2008 The new face of SABIC Innovative Plastics, Charlie Crew SABIC July/August 2008 25 SABIC WORLD S

China’s thriving economy is driving demand across multiple industries for fast access to high-performance plastics and value-added SABIC Innovative development services.

At Chinaplas 2008, SABIC Innovative Plastics announced a multi-pronged strategy to meet these customer needs Plastics expands through an expansion of local expertise and product fulfillment. The company is adding significant production capability to its plant in Pudong, Shanghai: a new facility to support housing four extrusion lines that will begin operations this month. SABIC Innovative Plastics will also expand its China Technology Center, located in Pudong, with the creation of a new Center of Excellence focused China customers on notebook computers. The company’s continued investment in application development and production resources will provide More than 80 percent of the world’s customers in Greater China and Asia notebook PCs are produced in China with faster procurement and outstanding technical support. “Asia is a major strategic focus for manufacturing design, an approach Future Focus SABIC Innovative Plastics, where we that is completely different from SABIC Innovative Plastics will establish are demonstrating our commitment traditional models. a new, world-class Research, by locating new production facilities Lean manufacturing allows for the Development and Customer and services close to customers to work production of small lot orders, the Technology Center (CTC) in Shanghai with them as long-term partners,” said flexibility to change production very by the end of 2010. The new facility Alan Leung, Pacific president for SABIC quickly, and enables a continuous will also serve as the Asia Pacific Innovative Plastics. process for manufacturing and delivery headquarters for SABIC Innovative “Our goals are to help automotive, to the customer, reducing cycle time Plastics. It will be the focal point for the electrical/electronics, and other for producing materials. company’s rapid growth and expansion leading OEMs and molders reduce Center of Excellence targets notebook in Asia, and will house global R&D time to market for their products and computer innovation. activities supporting the needs of achieve a major competitive advantage More than 80 percent of the world’s global customers. by leveraging end-to-end development notebook PCs are produced in China. This new facility investment clearly expertise. To support application innovation, reaffirms SABIC Innovative Plastics’ “Our mission is to continue to SABIC Innovative Plastics’ Center of commitment to customers in the leverage this expertise as engineering Excellence will offer comprehensive region with expanded capabilities plastics pioneers to drive our design, material specification, testing, beyond those offered at the current customer-focused initiatives forward, and processing expertise. CTC. It will also be the center of SABIC evidenced by the recent opening of Because of its location in the China Innovative Plastics’ future application the new production lines in Chung-ju, Technology Center, the new Center of development activities here. Korea, to make LNP Verton composites Excellence will be able to draw upon “Our continued investments in China readily available to Asian customers.” resources such as polymer formulation will accelerate SABIC Innovative and color and effect development. Plastics’ long tradition of supporting Lean manufacturing design Customers can work with SABIC our Chinese and global customers in the The new extrusion facility will Innovative Plastics’ experts to create region with the innovative product solu- produce a range of resins for the and validate new applications, tions and outstanding technical support automotive and electrical/electronics reducing innovation development cycle they need to succeed,” Leung added. sectors. It is the first SABIC Innovative times, and boosting their competitive “Their success is our success and the Plastics site created using Lean differentiation. ultimate measure of our achievement.”

26 SABIC July/August 2008 The future looks bright in Shanghai SABIC July/August 2008 27 success STORY S Plastic milk bottles

Gentler on the environment toughness/stiffness balance of SABIC can experience shorter start-up times Another key issue for the milk bottle HDPE B6246LS is a winning feature. on their machines and increased line industry is society’s increasing emphasis It also offers possibilities to stretch efficiency – which results in lower on recyclability and sustainability. the limits in the further reduction of operating costs. What’s more, the With superior thermal stability bottle weight. This will give packaging product features easy trimming and go greener performance during recycling firms a key advantage in reduced exceptional lot-to-lot consistency on activities – and no compromise on logistics costs and a more reliable common high production speed its excellent organoleptic properties damage rate on deliveries. blow-molding units. – SABIC HDPE B6246LS is set to make Consumers want to know that the products they buy meet the highest a major contribution in this area. High thermal stability Win-win solution standards in terms of health, safety and purity. As a HDPE grade, it has a favorable Any product’s success relies largely on With experts the world over endorsing eco balance and relatively low CO2 its viability in terms of manufacturing the health benefits of a regular emissions during resin and bottle costs. An important characteristic consumption of milk, especially in production compared to various other of SABIC HDPE B6246LS is its high children, this product will help to packaging materials. At the same time, a thermal stability and low retain calcium in the milk. This is SABIC’s latest bottle grade resin, SABIC milk bottle has to be able to do its job – sensitivity to thermooxidative another example of SABIC’s research HDPE B6246LS, combines improved no splitting or leaking. Here, the unique degradation. This means converters benefiting society as a whole. organoleptics with increased environmental friendliness, allowing packaging firms to ensure that your pint of milk remains fresh and pure for as long as possible. SABIC HDPE B6246LS is a newly developed grade specifically designed to meet the special demands of added-value milk products. It features superior performance in blow molded mono and multi-layer bottles for pasteurized, extended shelf life, and UHT milk – as well as probiotic and other single-serving drinks.

Preserving natural taste and smell With increasing demand for more health-oriented items like reduced fat dairy products, enriched milks, and probiotic drinks, the health trend is clearly here to stay. Since the taste and smell of milk can be affected by the packaging, it’s vital that the HDPE bottle grade gives outstanding organoleptic performance. Since the taste and smell of milk can be SABIC HDPE B6246LS retains its improved organoleptic properties, affected by the packaging, it’s vital that the even after multiple extrusion HDPE bottle grade gives outstanding steps – especially important when using a high percentage of regrind. organoleptic performance

28 SABIC July/August 2008 SABIC July/August 2008 29 INTEGRATION PROGRAM SABIC S

The Steering Committee’s role is to: global expertise to identify a large practices being pursued will enhance establish a simple and flexible program numbers of projects and best practices the company’s competitiveness in all Integration Program SABIC: of implementation, to set the program that will deliver substantial benefits to areas. Cost savings will be able to be direction, to create guiding principles the whole of SABIC, including its invested in new products, services and and priorities, to approve overall employees, customers, communities, our employees. Sharing best practices A beacon for innovation globally proposals from the individual teams, and shareholders. And importantly, this will improve value. And the effort will to resolve conflict and give collaboration is helping to create both help us speed products to markets and visible support to the program. the leadership networks and insight customers more quickly. With three entities making up our global business, SABIC HQ, SABIC The Steering Committee members are: within the whole of SABIC that will be • Align key business practices to Europe, and SABIC Innovative Plastics, it is vitally important that they necessary to continue its fast-paced the outside world. The HR team is Mr. Al-Mady, SABIC Vice Chairman global growth.This important ground leading the development of one all grow in the same direction. As such, a global integration program and CEO work was Phase I of the program. set of company values, and one set Ali Al-Khuraimi, SABIC Corporate Vice In Phase II, teams are building of leadership competencies. The has been launched, the SABIC Integration Program. President, Manufacturing Excellence detailed plans to implement their Communications team is coordinating Abdullah Bazid, SABIC Corporate Vice projects. trade show and conference President, Shared Services Upon the completion of Phase I, participation. Technology is reaching Mansour Al-Kharboush, SABIC Mohamed Al-Mady said: “I am pleased out to universities on projects, and Corporate Vice President, Specialty to know that Phase I, which was also to recruit talent as “one SABIC”. Products, and Program Executive, comprised of scoping and base lining Furthermore, Information Technology SABIC Integration Program the potential fruits of integration, has is working to connect the whole Boy Litjens, CEO, SABIC Europe been completed. company, virtually. Charlie Crew, President and CEO, “The SABIC Integration Program is a • Make the best of our talent and expertise. SABIC Innovative Plastics very important effort for our company Because of integration, every and will play an important role in our function already has a stronger The Program Management Office program of continuous improvement. understanding of team capabilities. (PMO) is responsible for managing the Make SABIC a better company to work overall program process, including mo- “The SABIC Integration • for. The HR team is working on bilizing and facilitating communications Program is a very multiple projects that will enhance among teams, challenging integration SABIC’s overall development of talent. options and time lines, along with com- important effort for our With SABIC as a group spread across munication and change management. company and will play an several continents integration is This team also finalizes the scope, priori- important role in our essential. Economic pressures around ties and the implementation schedule the world mean that companies must to submit to the Steering Committee. In program of continuous operate as efficiently as possible, addition to Program Executive Mansour improvement” which can only be achieved with joined Al-Kharboush, PMO leadership includes: up thinking. The Integration Program “I want to encourage your strong will draw out the key advantages SABIC Late last year, 120 leaders from SABIC work is essential for us to reach our to be a leading player in our industry. Ali Al-Shamrani, Integration Leader, efforts on Phase II, which will move this has in each of its global operations, headquarters, SABIC Europe and SABIC 2020 vision.” The Team SABIC Corporate Integration Program closer to fruition.” be that personnel, business practices, Innovative Plastics gathered in Aachen, Mohamed Al-Mady added: “As we look The commitment and ownership of Geert Bonte, Integration Leader, As the research and dialogue technology, or materials. Germany to officially kick-off the SABIC across our businesses in the three Integration Program SABIC is at the SABIC Europe continues many initiatives are coming However, such a program as this Integration Program. entities of SABIC, namely SABIC HQ, highest levels. Mohamed Al-Mady sets Eric Gregoire, Integration Leader, to the fore. By this time next year the requires the help and input of all This global meeting enabled SABIC Europe, and SABIC Innovative the overall vision for the organization SABIC Innovative Plastics integration efforts are targeted to: employees, which is the very essence participants to get to know each other Plastics, we see tremendous opportunities and the integration and ensures • Deliver solid benefits to customers. of integration.Mohamed Al-Mady and to start working on the integration to complement and learn from each accountability for the integration The functional integration teams each With SABIC’s growing global foot concludes: “The success of the Integration efforts that will help drive SABIC other. We firmly believe that all success. have three sponsors and three leaders, print and product portfolio, the Program is dependent upon all of us toward its vision to be the preferred together, we are stronger than taken one from each entity. The sponsors’ com pany will be in an even better owning and supporting it. I request world leader in chemicals. separately. “While committed to our role includes establishing guiding position to serve customers with that you keep yourself updated with More than twenty teams with “While committed to our current principles and boundaries, focus areas, undisputed capabilities from the program activities and progress representatives from the three SABIC operational model with the entities current operational model team structures and expectations. The polypropylene all the way to through your own line management entities convened to define specific working as stand-alone businesses, we with the entities working leaders are actively involved day-to-day high-end engineered thermoplastics. as well as through the communication areas they consider as possible believe we can become more effective as stand-alone businesses, in identifying the opportunities, then Teams are working together on channels that will be created by the synergies and best practices. by combining our global expertise. bringing the projects’ goals to life. concrete actions to strengthen Program Management Office. “This is one of the most important “Through this Integration Program we we believe we can become customer relationships throughout “Your support and input to the initiatives the company has taken,” will ensure that we realize synergies, more effective by combining Implementation the company. program is critical, even if you’re not said SABIC Vice Chairman and CEO, disseminate best practices, and gain Throughout the first quarter of 2008, • Increase SABIC’s competitiveness in the on any of the teams please offer Mohamed Al-Mady. “Our integration additional improvements to enable us our global expertise” the integration teams pooled their marketplace. The synergies and best your support.”

30 SABIC July/August 2008 SABIC July/August 2008 31 INTEGRATION PROGRAM SABIC S Early success stories “The SABIC Integration effort will help customers grow with the broadest polymer company in the world. SABIC will provide a global resource base Although the program is less than a year old there have already been delivering material solutions and is committed to develop new innovative several early success stories around the globe. SABIC magazine brings applications. As a result of the acquisition, SABIC is now a company with a you interviews with some of the program pioneers. global infrastructure and commercial resources working with customers in all geographies throughout the world to help them win”

Human Resources: Ensuring a Development and Regional Synergies I think one of the best ways to world-class workforce (beginning in Europe). The other effectively work across cultures is to Can you tell us about the areas of we are also very eager to share best As a sponsor of the Global Human company sponsors today include first, make personal contact and synergy and best practices that the practices and all of the collective Resources Integration Team, Marty Yousef Al-Benyan from Corporate second, to find common ground for Commercial team is focusing on? knowledge and experience among Gervasi shares the team’s focus on Headquarters and Harry van Dok of your work product. To that end, the our three organizations. SABIC’s people. Marty is SABIC Innovative SABIC Europe. in-person meeting we attended in The Commercial team is looking for Plastics Human Resources Leader. Germany was of great benefit. synergies and best practices in the Can you provide us with a short Can you provide a short summary of Additionally, all three HR teams have entire business field. We are focusing summary of the team’s importance the work the team is doing and its held many in-person working sessions on those activities that add highest to all of the three companies? importance to all companies? together. This is certainly helping to value, learning from each other and accelerate our efforts. keeping everybody on board. All the three entities have their own We selected the three areas above That said, there are always challenges unique experiences … The integration based on the opportunity to maximize when any group is trying to manage an Commercial is where SABIC connects program allows SABIC to benefit from best practices and seek opportunities for effort across time zones and cultures. with the customer. If a customer these hard earned experiences and other synergies, like supplier To date, the team members have been were to ask you today, “What will the short cut the process in earning new agreements. During the SABIC very flexible, patient and receptive SABIC Integration Program do for experiences. Many opportunities are Abdullah Bazid Integration launch meeting held in to change . . . all key ingredients to me?” how would you answer? possible that would allow both of these Aachen, Germany we further refined making this a success. functions to complement each other. the scope and charter of each of these The answer is a general one, but the geographies throughout the world to three areas and appointed leads from Commercial: Sharing our Futures impact will depend very much on the help them win. ‘What will the SABIC Integration each SABIC entity to drive these efforts. with our customers segment the customer is active in. Program do for me?’ we all naturally Included in the scope of Employer of As a sponsor of the Commercial In general I would say: “You will have IT: Information Technology ask. How would you respond, as a Choice are talent management Integration Team, Koos the most committed and innovative leader within SABIC and one very Marty G ervasi processes and mobility. Van Haasteren talks about customer supplier offering a polymer solution In addition to his role on the engaged in the integration process? For Learning & Development we reaction and market potential. Koos to almost any challenge today and Integration Steering Committee and How is the HR integration team are looking at our approaches to is General Manager Polyolefins tomorrow. Together with our as Corporate Vice President, Shared The SABIC Integration Program should approaching the opportunities to curriculum and our choices for Marketing, SABIC Corporate. customers, we are sharing our futures Services, Abdullah Bazid is a sponsor help all three SABIC entities identify strengthen this function throughout university and other partners. Within in the polymer business. Our goal is of the Information Technology (IT) areas of synergy, hence, identify the three SABIC entities - HQ, Europe the scope of the European synergies to listen to your requirements and integration team. He discusses how this opportunities to improve our business and Innovative Plastics? team, we are working together on respond with innovative cost-saving, area shares a lot of opportunity performance, our competitive position, recruiting and leadership training value-enhancing solutions better than for synergy and best practice. and career options for our employees The three sponsors for the HR team programs. We have chosen to focus our ever before”. at other SABIC locations through held our first meeting together in efforts on those areas we believe will The SABIC Integration effort will help Can you tell us about the areas of exchange programs. November. During that meeting we help accelerate our progress toward customers grow with the broadest synergy and best practices that this The output of each integration shared our approaches and best the SABIC 2020 vision and our intent polymer company in the world. SABIC team is focusing on? team will also enable employees to practices for a broad variety of HR to have a global organization that will provide a global resource base be more efficient and productive. In processes. Out of that session, we attracts, develops and retains a world- delivering material solutions and is Our IT team will be making an inventory the IT team, as an example, we will be identified those areas that we thought class workforce. committed to develop new innovative of all hardware, software and processes. sharing best practices and building would be most beneficial across the applications. As a result of the Then, we’ll be exploring opportunities on each other’s practical experiences entire SABIC enterprise. Our lengthy What are you doing to effectively acquisition SABIC Innovative Plastics, for standardization so that we can from a variety of industries – all list was then prioritized into the three work across business and geographical SABIC is now a company with global communicate and work together with the goal of making information major areas we are now pursuing: cultures? What’s going well, and are infrastructure and commercial better and of course, save money in the technology an even more productive Employer of Choice, Learning & there challenges? Koos Van Haasteren resources working with customers in all process. This is such a fast-moving area, tool for everyone.

32 SABIC July/August 2008 SABIC July/August 2008 33 Behind the Scenes S SABIC Automotive

Businesses premiere For the first time, the SABIC family of automotive businesses from SABIC Innovative Plastics, SABIC Europe, and Exatec exhibited at VDI in Germany together at the VDI Conference in Mannheim, Germany, in March.

The three global businesses of SABIC showcased the benefits of advanced plastics technologies in reducing automotive weight, increasing design flexibility, and enhancing part integration. This joint participation underscores the company’s strong commitment to collaborating with German automakers and to continuous material innovation, which can address demands for more environmentally compatible vehicles that offer high performance, increased safety, and cutting-edge styling. “Working with our automotive customers as long-term partners to help them achieve business success is our number-one goal,” said Derek Buckmaster, Automotive marketing director, Exterior Body & Glazing, SABIC Innovative Plastics (SIP). “Strong partnerships enable us to understand our customers’ Mark Neville needs and proactively develop new materials solutions like you see here “SABIC exhibited the at the VDI. Together with our German latest technologies at customers, we can solve tough challenges such as finding new vehicle the VDI, showcasing a weight reduction solutions and fresh unique front bumper design approaches.” made from SABIC Polypropylene solutions polypropylene compound, “SABIC exhibited the latest technologies at the VDI, showcasing a unique front a new front-end module bumper made from SABIC polypropylene made of SABIC STAMAX compound, a new front-end module made of SABIC STAMAX long-glass- long-glass-fiber- fiber-reinforced polypropylene, and reinforced polypropylene, a MPV door made from SABIC polypropylene compound,” said Mark and a MPV door made Neville, business unit Director from SABIC polypropylene Polypropylene Automotive Polymers. “The German auto industry is an compound”

34 SABIC July/August 2008 SABIC July/August 2008 35 Behind the Scenes S

well as the ability to integrate exterior for a recent Swedish attachment points on the inside passenger car. Structural surface of the component. The 2K tool components included a rear in which this part is molded, is part of door handle and a pedestrian the unique capabilities of the Glazing protection energy absorber for Centre of Excellence recently launched a new U.S-built full-size truck by SABIC Innovative Plastics. made from award-winning The combined automotive glazing Xenoy iQ resins. resources of SABIC Innovative Plastics and Exatec are now able to offer the Team work industry the widest range of siloxane All of the products demonstrated the coating, plasma-enhanced coating, benefits of replacing traditional metal defrosting, and polycarbonate resin and other materials with lightweight, solutions for automotive glazing. design-enhancing thermoplastic resins The team is also best-positioned to and composites. Furthermore, they assist automotive OEMs and Tier-1 Plastics. These included exterior body proved that SABIC, as a group, is at suppliers to implement these panels from the latest French multi- the leading edge of automotive solutions for industrial production. purpose van, highlighting lightweight material design. conductive Noryl GTX resin fenders; The joint conference marked a time Technology innovations from SIP interior components such as the of increased cooperation between the In addition to automotive glazing, the Lexan EXL resin prototype steering various divisions of SABIC globally, and SABIC exhibit highlighted the latest wheel; and lighting applications such set a starting point for further joint technologies from SABIC Innovative as a Lexan XHT resin lighting bezel efforts going forward.

extremely important market for SABIC defroster system. The world’s first “Together with offerings due to our strong collaboration with full-size, two-component injection- from SABIC Innovative many OEMs. Together with molded backlite, the ‘Francis’ features offerings from SABIC Innovative Plastics integrated hinges, strut attachment Plastics and Exatec, our and Exatec, our vast portfolio of points, handles, stop light, and vast portfolio of engineered engineered plastics will play a key role interior lights. Innovative designs such in our customers’ applications by as this one highlight the multiple plastics will play a key role helping manufacturers comply with advantages of thermoplastic glazing, in our customers’ environmental and safety legislation which enables part consolidation for and demand for increased fuel cost-out, weight-out, and streamlined applications by helping efficiency.” design. manufacturers comply Glazing Solutions from Exatec Also on display will be a two- with environmental and Examples of Exatec solutions include component, molded polycarbonate the ‘Francis’ backlite prototype, roof panel prototype, developed in safety legislation and utilizing lightweight Lexan conjunction with Summerer demand for increased polycarbonate resin with proprietary Technologies, highlighting the unique Exatec coating for durability and design capabilities of Lexan fuel efficiency” incorporating the proprietary Exatec polycarbonate automotive glazing as

36 SABIC July/August 2008 SABIC July/August 2008 37 SABIC CONFERENCES S SABIC demonstrates its plastics prowess in Singapore

Three hundred exhibitors from across the globe landed in Singapore in May for the ASEANPLAS exhibition. As one of the largest exhibitors, the SABIC stand was graced with a governmental visit. Speech by Al-Umar

SABIC was out in force at ASEANPLAS, ASEANPLAS is a project by the ASEAN Federation of Plastic Industries (AFPI) and hosted by the the international trade fair for plastics Singapore Plastic Industry Association. It is endorsed by the Singapore Exhibition and Convention and rubber, which was held in Bureau as an Approved International Trade Fair and supported by the European Committee of Machinery Singapore between 26th and 29th Manufacturers for the Plastics and Rubber Industries (EUROMAP), and K Düsseldorf, the world’s leading of May. This year’s exhibition attracted 300 plastic and rubber trade fair. exhibiting companies from 25 different countries. The event was opened by Ted Tan, the Deputy CEO of International Enterprise Messe Düsseldorf Asia Managing (SR4.32m/US$1.15m) to the China (IE) Singapore. Later in the day he made Director Gernot Ringling commented: Earthquake fund, which was welcomed a VIP visit to the SABIC stand. “Over the years, ASEANPLAS has “The must-attend event to rapturous applause by the dinning IE Singapore is an agency under the evolved into a technology-driven is a key forum for the guests. The money will be used to help Ministry of Trade and Industry showcase highlighting the latest the earthquake survivors rebuild their spearheading the development of solutions in line with the demands industry’s plastics and homes, schools, hospitals, and Singapore’s external economy wing. for increasingly sophisticated rubber converters to ultimately their lives. The group works to position Singapore processing techniques sought by Al-Umar also spoke about the SABIC stand at ASEANPLAS 08 in Singapore source the best solutions as a base for foreign businesses to the region’s industry. corporate developments and the expand into the region. “The must-attend event is a key forum in order to remain ahead formation of SABIC Innovative The opening of SABIC’s stand was for the industry’s plastics and rubber of regional and global Plastics, as well as the importance of officiated by Khaled Al-Mana, Vice converters to source the best solutions the Southeast Asian market. He stressed President of Intermediates; Ahmed in order to remain ahead of regional competition” to the audience that SABIC, as a whole, Al-Umar, General Manager of SAPPL; and global competition.” was committed to its customers, with Fahd Al-Sabhan, Regional Manager SABIC’s booth matched that of its customer meetings the SABIC team increased infrastructure and resources of Polymers; and Kyu Cho, Managing closest peers, Dow and Sumitomo hosted a reception dinner, which was for this region. Director, SABIC IP (S.E.A). Chemical, at 128 square meters, and attended by 200 guests (including 40 Overall, on the first day, arrangements On the first day, there were over 60 the three companies were the biggest SABIC staff and SABIC Innovative at the stand and dinner reception potential customer-companies of all the 300 exhibitors. Plastics staff). went very smoothly. There was a good visiting the SABIC booth to meet key SABIC used its booth to demonstrate The evening started with a harmony amongst all colleagues who sales personnel. its range of water pipes made from standing cocktail reception, followed worked very hard to take care of all the ASEANPLAS is held once every three SABIC HDPE. SABIC Innovative by a sit-down Chinese dinner. The arrangements. years in Singapore, with the last show Plastics also had a corner to display its corporate film was screened in the The next polymers show SABIC will held in 2005. It is organized by Messe products, which included a TV plastic beginning followed by a speech by attend will be the Vietnam Plastics & Düsseldorf, the same organizer as the screen, food trays used on aircraft and Al-Umar. Rubber exhibition which will take place K show in Germany. other items. In his speech, Al-Umar announced in Ho Chi Minh City from 21 to 23 ASEANPLAS venue, Singapore Expo After a full day of demonstrations and a corporate donation of RMB8 million October, 2008.

38 SABIC July/August 2008 SABIC July/August 2008 39 SABIC CONFERENCES S

Ahmed Al-Umar, General Manager, SABIC Asia Pacific, delivered an insightful speech Record attendance at the ASEANPLAS exhibition. He outlined the future growth plans for the company in Southeast Asia while explaining how this for APIC 2008 regional strategy fits in with the company’s The Asia Petrochemical Industry APIC 2008 was held in Singapore on May global ambitions. He said… Conference (APIC) has grown to be like what the EPCA is to Europe and the 27-28, attracting more than 1,200 delegates NPRA is to the United States. APIC is currently organised on a from 34 countries, compared to about 900 in The world we are in today is much innovation, SABIC Innovative Plastics “We are also expanding rotational basis by the seven member past years. The largest delegation was from different from that which I can not only extends our range of products countries - Japan, South Korea and remember when I joined SABIC in 1987. in engineering thermoplastics but also our customer technical Taiwan, India, Malaysia, Thailand Japan, with more than 260 delegates. We seem to keep moving faster and in application development and support with more and Singapore. faster with Economic Globalization marketing expertise. The theme of this year’s conference and the integration of international We have welcomed 10,000 employees engineers who are able was ‘Asian Petrochemicals - where are economy through trade where all into our SABIC family and now our total to cater to our customers’ we heading?’ competitors have an equal opportunity number of employees stands at over Being a key player in the industry, in a level playing field. 31,000 globally. queries on-site. Rest SABIC always sends a delegation of For those of you that can recall the Southeast Asia is a strategic market assured that we will chemicals sales managers to attend the early years of SABIC in the 1970’s, we for us as our polymer customer base conference, from both the Saudi Arabia have come a long way. We have set are mainly direct users and we would continue to grow HQ and the Asia office. our targets high and take pride in our like to further grow this segment. through our investment This was an excellent opportunity responsibilities to the world. We are putting in place dedicated for SABIC teams to meet with major We have been very fortunate. Today resources and infrastructure to actively in our industry and customers. The Intermediates, Basic SABIC holds top rankings in all our reach out to all our customers in this our people” Chemicals and Specialty Product SBUs market segments and in overall general region. organized a series of meetings with tonnage production. Over the last 2 years we opened customers. We have a stronger presence around new offices and engaged mobile staff who are able to cater to our customers’ SABIC also held a cocktail reception the world than we have ever had in to expand our reach to customers in queries on-site. Rest assured that we on the inaugural evening at the the past. Southeast Asia and respond to unique will continue to grow through our conference hotel, Swissotel. It was As you can see SABIC is going through needs in the various countries in which investment in our industry and hosted by SABIC’s VP intermediates, a period of significant growth to fulfill we do business. our people. Khaled Al-Mana, and the GM of SABIC our strategy of becoming a leading I believe that the way in which Asia Pacific, Ahmed Al-Umar, and was world-class player. “We have welcomed customers relations are handled today attended by 180 guests. We are also strengthening our 10,000 employees into has changed. Today we have both Guests were presented with a name manufacturing base with a current internal and external customers. card holder as a small door gift as they corporate investment program that our SABIC family and SABIC’s customers are our friends and entered, and were entertained with exceeds US$20 billion. now our total number of long term partners. the SABIC corporate video on a plasma We will have 73 million tons of These relationships are key and most screen in the cocktail room. To further manufacturing capacity by 2009, as employees stands at over vital in SABIC’s view. increase the corporate image, SABIC • Naptha at all time high prices in emerging markets sustainable, compared to 55 million tons last year. 31,000 globally” We look forward to continuing to had a spectacular ice carving of the • china’s economy – can it sustain or will climate change wreck the However, we cannot be content with grow those relationships. company’s name placed in the center growth at 10 percent per year? global economy? today, but must constantly look to the Similarly in the last 2 years we have We have a vision at SABIC to be the of the room. • Will the highest-cost producers Overall, the customer reception, future. also set up warehouses in Vietnam and preferred world leader in our industry. As guests networked there were survive the downturn, which could customer meetings and conference This is why we recently acquired China. We also have warehouses in We are pleased that SABIC is living up several key topics of discussion that last to 2012 and beyond? went very well, and SABIC will be GE Plastics, which led to the formation Shanghai and Singapore. to the reputation – as both a reliable were regularly overheard, they • Middle East producers will dominate returning next year. For the organization of SABIC Innovative Plastics – a This is to ensure that we have the supplier and as an innovator. included: export markets and becoming a team there is little rest as the planning world-leading supplier of highly products more readily available for our We have had an extremely successful • US recession – will it climb out of major polypropylene player begins immediately for APIC 2009. engineered thermoplastics. This gives customers. past and see a bright future ahead its downturn? • Potential for coal-based olefin out The event is so popular that the the world a clear picture of our vision We are also expanding our customer together with the partnership • Record breaking crude oil price – put in China is enormous. exhibition space, hotel and function at SABIC. With more than 75 years of technical support with more engineers of our valued customers. will it go higher, how will this affect • Is the kind of growth we have seen rooms are snapped up long in advance. profitability?

40 SABIC July/August 2008 SABIC July/August 2008 41 LIFESTYLES S Turn up the heat The barbeque is synonymous with sunshine and good times around the world. Few cooking methods are shared in the same manner across the global.

arbecue or barbeque an area of a garden/terrace dedicated (abbreviated to BBQ, Bar-B-Q to watching food being cooked, moved The History or Bar-B-Que or diminuted, and flicked with associated drink The origins of both the activity of chiefly in Australia, New supping and general merriment. The barbecue cooking and the word itself BZealand and the United Kingdom to term is taken from Latin; the concept is are somewhat obscure. Most barbie, and Braai in South Africa) is taken from the Greek auditorium which etymologists believe that barbecue a method and apparatus for cooking had a series of semi-circular seating derives ultimately from the word food, often meat, with the heat and hot shelves in the theatre, divided by broad barabicu found in the language of the gases of a fire, smoking wood, or hot ‘belts’, called diazomata, with eleven Taíno people of the Caribbean. coals of charcoal and may include the rows of seats between each. The word translates as sacred fire pit application of a marinade, spice rub, or Many notable authorities maintain Strictly speaking, a gas Most etymologists and is also spelled barbacoa. The word basting sauce to the meat. that gas barbecues are an abomination. describes a grill for cooking meat The term as a noun can refer to foods Strictly speaking, a gas “barbecue” is “barbecue” is more believe that barbecue and/or hot smoke (similar to or possibly consisting of a wooden platform cooked by this method, to the cooker more correctly referred to as an correctly referred to as identical to roasting). For example, in resting on sticks. itself, or to a party that includes such outdoor kitchen and owes little to the derives ultimately from a typical US home ‘grill’, food is cooked Traditional barbacoa involves digging food. The term is also used as a verb for tradition of cooking outdoors on a an outdoor kitchen and the word barabicu found on a grate directly over hot charcoal; a hole in the ground and placing some the act of cooking food in this man- naked primeval flame. while in a US ‘barbecue’, the coals are meat (usually a whole goat) with a pot ner. Barbecue is usually cooked in an The weight of opinion is that inferior owes little to the in the language of the dispersed to the sides or at significant underneath it, so that the juices can outdoor environment heated by the cooks are satisfied with the heat and tradition of cooking Taíno people of the distance from the grate. make a hearty broth. It is then covered smoke of wood or charcoal, or with charring abilities of gas whereas more Alternatively, an apparatus called a with maguey leaves and coal and set propane and similar gases. Restaurant discerning cooks prefer the more outdoors on a naked Caribbean smoker with a separate fire box may alight. The cooking process takes a barbecue may be cooked in large brick robust and direct heat of charcoal. primeval flame be used. Hot smoke is drawn past the few hours. or metal ovens specially designed for In British English usage, barbecuing meat by convection for very slow There is ample evidence that both the that purpose. and grilling refer to a fast cooking cooking. This is essentially how word and cooking technique migrated Barbecue has numerous regional process directly over high heat, whilst barbecue is cooked in most US out of the Caribbean and into other variations in many parts of the world. grilling also refers to cooking under ‘barbecue’ restaurants, but cultures and languages, with the word Notably, in the United States, a source of direct, high heat -known nevertheless many consider this to be moving from Caribbean dialects into practitioners consider barbecue to in the US and Canada as broiling. a distinct cooking process called Spanish, then French and English. The include only relatively indirect methods In US English usage, however, smoking. Oxford English Dictionary cites the of cooking, with the more direct grilling refers to a fast process over BBQ tongs for The slower methods of cooking break word as having been introduced into rotating meat high-heat methods to be called grilling. high heat whilst barbecuing refers to down the collagen in meat and tenderize the English language by British A Barbecutorium is a name given to a slow process using indirect heat tougher cuts for easier eating. buccaneer William Dampier.

42 SABIC July/August 2008 SABIC July/August 2008 43 LIFESTYLES S

been turned into charcoal but unlike imparted on gas grills using water- Smoking briquets it has not been ground and soaked wood chips placed in an Smoking can be done with wood or shaped. Lump charcoal is a pure form inexpensive “smoker box” (a perforated charcoal, although many common of charcoal and is preferred by many metal box), or simply a perforated foil commercial smokers use a gas such as purists who dislike artificial pouch, under the grilling grate and propane to heat up a box of wet wood binders used to hold briquets in their over the heat. It takes some experience chips enough to cause smoke. The heat shape. Charcoal cannot be burned in order to keep the chips smoking from the propane fire helps cook the indoors because poisonous carbon consistently without catching fire; meat while the smoke adds its unique monoxide is a combustion product. some high-end gas grills include a and delicious flavor. The distinction Carbon monoxide fumes may built-in smoker box with a dedicated between smoking and grilling is the contribute to the pink color taken on burner to simplify the task. heat level and the intensity of the by barbecued meats after slow cooking Using such smokers on quick-grilled radiant heat; indeed, smoking is often in a smoker. Many barbecue foods (steaks, chops, burgers) nearly referred to as “low and slow.” Additionally, aficionados prefer charcoal over gas duplicates the effects of wood and during grilling the meat is exposed to (propane) for the authentic flavor the charcoal grills, and can actually make the open air for the majority of coals provide. However, given the grilling some longer-cooked foods, the time. convenience and unique flavor of gas, such as ribs, easier, since the “wet” heat During smoking, the BBQ lid or this topic is a considerable point of makes it easier to prevent the meat smoker door is closed, making a thick contention in the BBQ community. from drying out. dense cloud of smoke to envelope the Gas grills are significantly more meat. The smoke must be able to move Chimney starter expensive due to their added complexity, freely around the meat and out of the A charcoal chimney starter is an and higher heat. They are also top of the apparatus quickly, otherwise inexpensive and efficient method for considered much cleaner as they do foul-tasting creosote will build up on quickly obtaining a good charcoal fire. not result in ashes, which must be the meat, giving it a bitter flavor. A few pages of newspaper are wadded disposed of, and also in terms of air up underneath the chimney to start the pollution. Proper maintenance may Other uses fire. Other methods are to use an elec- performed in a smoker. The method further help reduce pollution. The term barbecue is also used Gas grills are easy to tric iron to heat the charcoal or to soak involves putting a small number of The useful life of a gas grill may be to designate a flavor added to Grilling: Wood it with aliphatic petroleum solvent and hot coals on top of a full chamber of extended by obtaining replacement gas foodstuffs, the most prominent light. The heat is easy The choice and combination of woods light it in a pyramid formation. unlit briquettes. The burning coals will grill parts when the original parts wear of which are potato chips. This term to control via burned result in different flavors Charcoal briquettes pre-impregnated gradually light the unlit coals. By out. Most barbecues that are used for usually implies a strong smoky flavor, imparted to the meat. Woods commonly with solvent are also available. leaving the top air vent all the way commercial purposes now use gas and often denotes a flavor reminiscent knob-controlled gas selected for their flavor include Although the use of solvents is quick open and adjusting the lower vents, for the reasons above. of barbecue sauce. valves on the burners, mesquite, hickory, maple, cherry, and portable, it can be hazardous, and a constant temperature of 225°F can so the outcome is very pecan, apple and oak. Woods to avoid petroleum solvents can impart easily be achieved for up to 18 hours. Solar power include conifers. These contain resins undesirable chemical flavors to the Gas grills are easy to light. The heat is There have been a number of designs predictable and tars, which impart undesirable meat. Using denatured alcohol easy to control via knob-controlled gas for barbecues that use solar power as resinous and chemical flavors. If these (methylated spirit) instead of valves on the burners, so the outcome a means of cooking food. The device woods are used, they should be burned commercial petroleum-based lighter is very predictable. Gas grills give very usually involves the use of a curved in a catalytic grill, such as a rocket fluids avoids this problem. consistent results, although some mirror acting as a parabolic reflector, stove, so that the resins and tars are Once all coals are ashed-over charcoal and wood purists argue that which focuses the rays of the sun on to completely burned before coming into (generally 15-25 minutes, depending it lacks the flavors available only from a point where the food is to be heated. contact with the food. on starting technique), they can be cooking with charcoal. Different types of wood burn at spread around the perimeter of the Advocates of gas grills claim that gas different rates. The heat also varies by grill with the meat placed in the center cooking lets you “taste the meat, not the amount of wood and controlling for indirect cooking, or piled together the heat” because it is claimed that the rate of burn through careful for direct cooking. Water-soaked wood charcoal grills may deposit traces of venting. Wood and charcoal are chips (such as mesquite, cherry, hickory coal tar on the food. Many grills are sometimes combined to optimize or fruit trees) can be added to the coals equipped with thermometers, further smoke flavor and consistent burning. for flavor. simplifying the barbecuing experience. As with wood barbecuing, the tem- However Charcoal perature of the grill is controlled by the propane and natural gas produce a This generally begins with purchasing amount and distribution of coal within “wet” heat (combustion byproducts a commercial bag of processed the grill and through careful venting. include water vapor) that can change charcoal briquettes. An alternative to For long cooking times (up to 18 the texture of foods cooked over charcoal briquettes is lump charcoal. hours), many cooks find success such fuels. Lump charcoal is wood that has with the “Minion Method”, usually Added wood smoke flavor can be BBQ tools of the trade; lifter and fork for working with hot meat

44 SABIC July/August 2008 SABIC July/August 2008 45 Riyadh – a panoramic view of the Saudi Arabian capital SABIC COMPETITION

Correctly complete the suduko and crossword puzzles for your chance to win a stylish leather briefcase. Fax complete entries to +966 1 461 2966 (Closing date September 1st 2008)

Name: Address: Tel: Mob: Email:

Can you name the countries associated with the mountains?

Across Down 1 2 3 4 1 Noshaq 2 Aneto 5 6 7 5 Gangkhar Puensum 3 Hochkonig 8 9 9 Damavand 4 Emi Kussi 10 11 10 Doi Inthanon 6 Ahaggar 12 12 Annapurna 7 buni Zom 13 14 16 Hkakabo Razi 8 Fansipan 15 17 Ausberge 11 Rungwe 16 17 18 Shivling 13 breithorn 18 21 Hilmalchuli 14 Laila Peak

19 20 23 Kompassberg 15 Azbine

21 22 23 24 25 belukha 16 Mulanje 26 Mount Baker 19 Jebel Toubkai

25 26 27 Ras Dejen 20 Kinyeti 28 Kilimanjaro 22 Aegaleus 24 Moco

27 28

CongratulationsAcross go to Sadiq Koshak of SabTDownank in the Yanbu Industrial City, Saudi 1. Noshaq [AFGHANISTAN] 2. Aneto [SPAIN] Arabia, 5.who Gangkhar is the Puensum winner [BHUTAN] of our competition3. Hochkönig from the [AUSTRIA] last issue of SABIC magazine. 9. Damavand [IRAN] 4. Emi Koussi [CHAD] The prize10. Doiwill Inthanon reach [THAILAND] you shortly. 6. Ahaggar [ALGERIA] 12. Annapurna [NEPAL] 7. Buni Zom [PAKISTAN] 16. Hkakabo Razi [MYANMAR] 8. Fansipan [VIETNAM] 17. Auasberge [NAMIBIA] 11. Rungwe [ZAMBIA] 18. Shivling [INDIA] 13. Breithorn [ITALY] 21. Hilmalchuli [NEPAL] 14. Laila Peak [PAKISTAN] 46 SABIC23. KompassbergJuly/August [SOUTHAFRICA] 2008 15. Azbine [NIGER] 25. Belukha [RUSSIA] 16. Mulanje [MALAWI] 26. Mount Baker [CONGO-UGANDA] 19. Jbel Toubkal [MOROCCO] 27. Ras Dejen [ETHIOPIA] 20. Kinyeti [SUDAN] 28. Kilimanjaro [TANZANIA] 22. Aegaleus [GREECE] 24. Moco [ANGOLA] *5
5",&4
5&".803,
."5&3*"-4

5&$)/0-0(:
"/%
"
(".&
0'

1&&,"#00
50
(&5
)&3
4"'&-:
)0.&

4BGFUZ
DPNFT
¾STU
4P
XIFO
DBST
HFU
TNBMMFS
PS
MJHIUFS
UIF
NBUFSJBMT
UIBU
NBLF
UIFN
IBWF
UP
HFU
TNBSUFS
#Z
XPSLJOH
DMPTFMZ
XJUI
BVUPNBLFST
BDSPTT
UIF
XPSME
4"#*$
EFWFMPQT
BOE
TVQQMJFT
QPMZNFST
UIBU
EFMJWFS
OFX
MFWFMT
PG
TBGFUZ
TUSFOHUI
BOE
TUZMF
*UµT
UIF
DPMMBCPSBUJWF
BQQSPBDI
UIBU
IBT
NBEF
VT
POF
PG
UIF
XPSMEµT
MFBEJOH
NBOVGBDUVSFST
PG
QPMZNFST
IJHIMZ
FOHJOFFSFE
UIFSNPQMBTUJDT
DIFNJDBMT
NFUBMT
BOE
GFSUJMJ[FST
4UBSU
ZPVS
KPVSOFZ
XJUI
VT
BU
TBCJDDPN