Saudi Basic Industries Corporation (Sabic) “aspires” to enter the field of “more specialized and advanced military industries”. Muhammad Al-Madhi, Executive President of the Corporation, said in a recent interview that Sabic currently “provides plastic resins, engineered plastics and polymers and chemical materials that are feedstock in the process of military equipments and its spare parts industry”. “Military industries now depend on plastic as raw material because of its advantages in terms of weight and ability to resist impact and heat.” This was in addition to its ability to resist certain solvents and all kinds of weather conditions, Al-Madhi said. On the performance of the company, Al-Madhi added that Sabic's sales of polymers will increase to 26 million tons in 2020 from its current 13 million. He said the corporation contributes 5,1 percent to the country's Gross Domestic Product (GDP). GDP is the total market value of goods and services produced by a country. He said Sabic's iron products are currently used in construction applications – concrete and prefabricated iron buildings and in the manufacture of fences and security barriers, tanks (water and chemical) and safety equipment like fire extinguishers. Al-Madhi said the corporation's metal sector constitutes 12 percent of Sabic's total sales with about SR12 billion in sales revenue. It constitutes about 22 percent of the total net profit, with SR2 billion. He said the sector's products are most in demand locally. The metal unit produces about 5 million tons yearly, of which 90 percent are sold domestically, he said. He said Sabic's Innovative Plastic Resins materials are used in a series of industries including car and planes, electronics, optical fiber and health care equipment. Sabic's purchase of the United States' General Electric Plastic division meant it had acquired 75-years of experience and more than 5,000 patent rights, which represents a large enhancement of Sabic's competitive abilities around the world. This has also opened the door to more advanced industries and will increase the percentage of the industrial sector's contribution to national production and create more jobs for Saudis, he added. Polymers He said Sabic's plans involve increasing its production of polymers in and outside the Kingdom. This year, it will market an additional 2.4 million tons to meet production expansion at new companies. It will add one million ton more in 2013 after the Saudi Kayan company starts commercial production in 2011. The total production will reach 25 million tons in 2020. He added that Sabic has a strategy to develop a generation of Saudis who are able to deal with and develop technology. The company has donated SR80 million to the Centennial Fund to encourage young men and women to create their own business. It has also donated SR50 million toward the Jeddah flood victims and those people displaced by the conflict in Jizan, he added.
