Sabic Reorganizes Corporate Structure to Adapt to Market Changesby
Aims to create a more agile and cost-efficient organization
Follows review into challenges facing Saudi chemical producer
Saudi Basic Industries Corp. announced a restructuring to make itself more agile and cost-efficient, following a comprehensive review of the challenges facing the Middle East’s biggest petrochemicals company.
The new organizational structure should be in place by January 1, the company said in a statement Thursday. Sabic’s innovative plastics unit will be broken up and reallocated to other divisions, including chemicals and polymers and a new unit called specialties.
“The changes will enhance our global footprint to serve our customers locally while providing solutions globally,” Yousef Abdullah Al-Benyan, Acting Vice Chairman and chief executive officer of SABIC , said in the statement. “This reorganization will focus resources more intensively on the needs of each line.”
Sabic bought General Electric Co.’s plastics unit in 2007 for $11.6 billion. The company has access to the abundant sources of natural gas feedstock produced during oil extraction by state-owned Saudi Arabian Oil Co.