Saudi Basic Industries Corporation PO. Box 5101 Riyadh 11422 Kingdom of Saudi Arabia T +966 (0) 1 225 8000 F +966 (0) 1 225 9000 E [email protected] www.sabic.com SABIC Report and Accounts Access to new resources, markets and technologies allows SABIC to work with customers in innovative ways 2007 Report and Accounts 2007 Contents 02 The world of SABIC 42 People 12 Chairman’s statement 44 Corporate Social Responsibility 14 Vice Chairman and CEO’s report 50 Safety, Health and Environment 18 Board of directors 54 Consolidated financial statements 20 Global operations 56 Independent auditors’ report 22 Business review 57 Consolidated balance sheet 22 Basic Chemicals 58 Consolidated statement of income 24 Intermediates 59 Consolidated statement of cash flows 26 Specialty Products 60 Consolidated statement of 28 SABIC Innovative Plastics shareholders’ equity 32 Polymers 61 Notes to the consolidated 34 Fertilizers financial statements 36 Metals 76 SABIC manufacturing and 38 Research and Technology compounding companies 40 Logistics 81 SABIC global directory Printed in the UK by Beacon Press using their pureprint® environmental technology on Revive 50:50 containing 50% recovered fibre and FSC mixed sources accredited. All the electricity used in the production of this report was generated from renewable sources and vegetable based inks were used throughout. Beacon Press is a CarbonNeutral® company and registered to the Environmental Management System, ISO 14001 and EMAS, the Eco Management and Audit Scheme. Designed and produced by Bisqit. www.bisqit.co.uk Saudi Basic Industries Corporation PO. Box 5101 Riyadh 11422 Kingdom of Saudi Arabia T +966 (0) 1 225 8000 F +966 (0) 1 225 9000 E [email protected] www.sabic.com SABIC Report and Accounts Access to new resources, markets and technologies allows SABIC to work with customers in innovative ways 2007 Report and Accounts 2007 Contents 02 The world of SABIC 42 People 12 Chairman’s statement 44 Corporate Social Responsibility 14 Vice Chairman and CEO’s report 50 Safety, Health and Environment 18 Board of directors 54 Consolidated financial statements 20 Global operations 56 Independent auditors’ report 22 Business review 57 Consolidated balance sheet 22 Basic Chemicals 58 Consolidated statement of income 24 Intermediates 59 Consolidated statement of cash flows 26 Specialty Products 60 Consolidated statement of 28 SABIC Innovative Plastics shareholders’ equity 32 Polymers 61 Notes to the consolidated 34 Fertilizers financial statements 36 Metals 76 SABIC manufacturing and 38 Research and Technology compounding companies 40 Logistics 81 SABIC global directory Printed in the UK by Beacon Press using their pureprint® environmental print technology on Revive 50:50 containing 50% recovered fibre and 50% FSC certified fibre. All the electricity used in the production of this report was generated from renewable sources and vegetable oil based inks were used throughout. Beacon Press is a carbon neutral company registered to EMAS, the Eco Management Audit Scheme and certified to ISO 14001 Environmental Management System. Designed and produced by Bisqit. www.bisqit.co.uk Our vision is to be the preferred world leader in chemicals Overview Our mission is to responsibly provide quality products and In 2007 SABIC strongly increased revenues, launched new Taiwan SABIC Polymerland Muhenddislik SABIC Innovative Plastics SABIC Technology Center SABIC Asia Pacific Pte Ltd Plastikleri Sanayi vs Ticaret Americas and Global HQ 1600 Industrial Blvd. services through innovation, learning and operational excellence businesses and strengthened training. We expanded both Taiwan Branch Anonim Sirketi 1 Plastics Avenue Sugar Land, Texas 77478 52E, Taipei 101 Tower, Dudullu Organize Sanayi Bolgesi Pittsfield, MA 01201 USA while sustaining maximum value for our stakeholders. our product range and our geographic reach. 7 Xin Yi Road, Sec. 5, 2. Cadde No 173 USA T +1 281 2075500 Taipei 110, 81250 Umraniye T +413 448 7110 F +1 281 2075550 Taiwan Istanbul F +413 448 5573 Turkey SABIC Innovative Plastics T +886 2 8101 1101 SABIC Innovative Plastics LNP Products F +886 2 8101 1102 T +90 216 3651565 (pbx) 6130 Stoneridge Mall Rd, 475 Creamery Way E [email protected] T +90 216 3654959 (pbx) Suite 300 Exton, PA 19341 F +90 216 3650115 SABIC Innovative Plastics Taiwan Pleasanton, CA 94588 USA Holding Ltd. United Arab Emirates USA T +610 363 4500 Total production by business unit 8F–1, 35 Min Chuan E. Road Sec. 3 SABIC Dubai T +925 463 7232 ’000 metric tons Net income 2007 Increase in income on the Net income SR billions Taipei PO Box 25892 SABIC Innovative Plastics F +925 463 7282 previous year 2007 27.0 Taiwan Dubai 1 Lexan Lane SABIC Innovative Plastics Mt Vernon, Indiana 47620 2006 20.3 T +886 2 5092124 T +971 4 332 2210 Basic Chemicals 24,072 701 East 22nd Street, USA F +886 2 5091625 F +971 4 332 2218 Intermediates 10,130 2005 19.2 Suite 300, Lombard, E [email protected] T +812 831 7000 Polymers 8,266 2004 14.2 SABIC Innovative Plastics Taiwan Illinois, 60148 Fertilizers 7,515 Holding Ltd. LNP Products United Kingdom and Ireland USA SABIC Innovative Plastics Metals 4,794 2003 6.7 13F, Room E1, No. 168, SABIC UK 1 Noryl Ave T +630 652 4562 Tun Hua North Road DSM House, Papermill Drive Selkirk, New York 12158 F +630 652 4475 Taipei 105 Redditch, Worcs. B98 8QJ USA SR 27bn 33% United Kingdom SABIC Innovative Plastics T +88 6 227147000 T +518 475 5011 9930 Kincey Ave. F +88 6 225453305 T +44 1527 590570 Sales revenue 2007 Increase in sales revenue on Huntersville, NC 28078 SABIC Innovative Plastics Basic Chemicals Fertilizers SABIC Innovative Plastics Sales revenue SR billions F +44 1527 590577 previous year Thailand USA 2148 North 2753rd Road Basic Chemicals, SABIC’s largest Strategic Among the Fertilizer SBU’s products are The launch of SABIC Innovative Plastics 2007 126.2 SABIC Innovative Plastics SABIC UK Petrochemicals Limited Ottawa, Illinois, 61350 Business Unit (SBU), accounts for around urea, ammonia and phosphate. Along makes SABIC a world-class leader in T +704 641 1075 2006 86.3 (Thailand) Co Ltd PO Box 99 USA 40% of the company’s total production. with three affiliates – Saudi Arabian engineering plastics, with a broad F +704 992 4937 21st Floor Thaniya Plaza Bldg. Wilton Centre Made from hydrocarbon feedstocks Fertilizer Company (SAFCO), Jubail portfolio of high-performance resins, 2005 78.3 T +815 434 7000 52 Silom Road Redcar TS10 4YA SABIC Polymershapes such as methane, ethane, propane and Fertilizer Company (AL-BAYRONI) and polymer shapes and thermoplastic film 2004 68.5 Bangkok 10500 United Kingdom 11515 Vanstory Drive, SABIC Innovative Plastics butane, they are basic to petrochemical National Chemical Fertilizer Company and sheet. The launch was a key strategic Thailand Suite 140 1 Plastics Drive production and essential to the (IBN AL-BAYTAR) – SABIC is a major producer step toward becoming the preferred 2003 46.8 T +44 1642 453366 Huntersville, NC 28078 Burkville, Alabama, 36752 manufacture of a wide range of of ammonia and the world’s largest world leader in chemicals. T +66 2 2312323 F +44 1642 834608 USA USA industrial and consumer goods. producer and exporter of granular urea. SR 126.2bn 46% F +66 2 2312322 E [email protected] T +866 437 7427 T +334 832 5000 SABIC Innovative Plastics SABIC Innovative Plastics Limited Intermediates Metals Specialty Products (Thailand) Co Ltd Application Old Hall Road SABIC Innovative Plastics Vietnam The Intermediates SBU comprises The core of the Metals SBU is the Saudi The Specialty Products SBU was created Total assets at end of 2007 Increase in total assets on Development Center Sale, Cheshire, M33 2HG Exatec, LLC SABIC Vietnam Rep Office four main product segments: fiber Iron and Steel Company (HADEED), to focus on new high value special previous year SABIC Innovative Plastics United Kingdom 31220 Oak Creek Drive Suite 1106 intermediates, industrial gases, chemical primarily engaged in producing long derivatives, targeting market sectors (Thailand) Company Limited Wixom, MI 48393 29 Le Duan Street, District 1 intermediates and linear alpha olefins. steel and flat steel products. The SBU selected for their profit potential. These T +44 161 9055000 64/22 Moo 4 Tumbol USA Saigon Tower Building These are used in SABIC’s own industrial also manages SABIC’s stakes in two include specialist automotive, catalyst, F +44 161 9055119 Pluak Daeng, Ho Chi Minh City processes; as feedstock for the company’s Bahrain aluminum manufacturing oilfield and rubber chemicals, specialty T +1 248 926 4200 Amphur Pluak Daeng, United States of America Vietnam affiliates; and for export to global markets. companies – Aluminum Bahrain (ALBA) polymers and polymer additives. The SBU F +1 248 960 1143 Rayong 21140 SABIC Americas, Inc. and Gulf Aluminum Rolling Mill Company works to meet customers’ needs ever T +84 (8) 824 3802 Thailand 2500 CityWest Boulevard SABIC Innovative Plastics Polymers (GARMCO) – and the SABAYEK Ferroalloy better, provide consistently excellent F +84 (8) 824 3973 Suite 650 Automotive The Polymers SBU produces two major Smelter in Al-Jubail. HADEED is the service, and stay at the leading edge of T +66 38 95523542 E [email protected] Houston, TX 77042 Two Towne Square polyolefin derivatives, making SABIC number one steel manufacturer in the application technology. SR 256.2bn 54% F +66 38 955244 USA Southfield, Michigan 48076 currently the world’s third largest Middle East, and one of the largest Turkey USA producer of polyethylene and the fully integrated complexes of its kind T +1 713 532 4999 SABIC Turkey fourth largest in polypropylene. Overall, anywhere in the world. F +1 713 532 4994 T +1 248 262 2600 Degirmen Sok. Nida Kule No.12 SABIC is now the world’s fourth largest E [email protected] F +1 248 262 2663 11th Floor polyolefins producer, with the single most 34744 Kozyata comprehensive portfolio of polymer Istanbul resins of any producer–supplier.