Saudi Basic Industries Corp. (SABIC) has recently announced a potential investment agreement with the Fujian government in China to establish an engineering thermoplastic compounding plant in the country. This decision reinforces SABIC’s dedication to meeting the demands of its local customer base in China and strengthening its presence in the region.

China holds a crucial position as a market for the company, accounting for over 40 percent of SABIC’s global chemical sales. In addition to the upcoming engineering thermoplastics compounding plant in Fujian province, SABIC currently operates the SABIC Technology Center in Shanghai and runs three compounding plants in Guangzhou, Shanghai, and Chongqing. The company also has a presence in 17 cities across Greater China.

Abdulrahman Al-Fageeh, CEO of SABIC, emphasized the significance of the investment agreement in driving the company’s growth in China and reaffirmed the confidence in strategic investments in the country. The planned compounding plant is expected to be situated in the Gulei Port Economic Development Zone in Zhangzhou, Fujian.

The process of thermoplastic compounding entails blending a thermoplastic polymer with other materials to improve its properties and produce customized materials with specific characteristics. The proposed plant will specialize in manufacturing pelletized polycarbonate and CYCOLOY resin blends tailored to the requirements of various industries, such as electrical and consumer electronics, automotive, as well as emerging sectors like solar energy, electrification, and 5G technology.

Through collaboration with upstream and downstream partners, the project aims to strengthen SABIC’s supply capability in compounding products and provide innovative, high-quality material solutions to the Chinese market. The new plant is also expected to create synergies with SABIC’s existing joint ventures in China, further contributing to the delivery of unique solutions and products.

As part of its growth strategy in China, SABIC is committed to leveraging collaboration with its global and local partners and customers. The new plant will be equipped with compounding lines, color development capabilities, and advanced equipment to facilitate the creation of innovative solutions for engineering plastics in collaboration with customers and partners.

Headquartered in Riyadh, SABIC operates on a global scale, manufacturing a diverse range of products, including chemicals, commodity and high-performance plastics, agri-nutrients, and metals. Notably, the petrochemical giant saw an 84 percent year-on-year increase in net profit to SR2.18 billion ($564 million) in the second quarter of 2024, underscoring its robust financial performance.

The company’s strategic investment in the new thermoplastic compounding plant in China reflects its long-term vision for growth and innovation, further solidifying its position as a key player in the global chemical industry.

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