Sabic Reorganizes Corporate Structure to Adapt to Market Changes

  • 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.

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