Saudi Basic Industries Corp. (SABIC) has recently announced its intentions to construct an engineering thermoplastic compounding plant in China as part of a potential investment agreement with the Fujian government. This strategic move is aimed at meeting the growing demands of local customers in China and further strengthening the company’s market position in the country.

China plays a pivotal role in SABIC’s global expansion, accounting for over 40 percent of its chemical sales. With its current operations in China, the Saudi-listed firm already oversees the SABIC Technology Center in Shanghai, as well as three compounding plants in Guangzhou, Shanghai, and Chongqing, and has a presence in 17 cities across Greater China.

The new thermoplastic compounding plant will be situated in the Gulei Port Economic Development Zone in Zhangzhou, Fujian. This facility will focus on producing pelletized polycarbonate and CYCOLOY resin blends, tailored to meet the specific requirements of various industries, including electrical and consumer electronics, automotive, solar energy, electrification, and 5G technologies.

Abdulrahman Al-Fageeh, CEO of SABIC, has emphasized the importance of this investment agreement, stating that it represents a significant moment in the company’s expansion in China. He also underscored SABIC’s commitment to collaborating with local partners and customers to drive continued growth in the country.

Furthermore, the new plant is expected to create synergies with SABIC’s existing joint ventures in China, further enhancing its ability to deliver innovative solutions and products to the market. The company aims to leverage the expertise of its global and local partners to develop new and advanced material solutions for engineering plastics.

SABIC’s expansion in China follows the company’s strong financial performance, with an 84 percent year-on-year surge in net profit to SR2.18 billion ($564 million) in the second quarter of 2024. This growth demonstrates SABIC’s resilience and strategic positioning in the global market, further underscoring the significance of the new investment in China.

As the company continues to expand its presence in China, SABIC remains steadfast in its commitment to providing high-quality material solutions, strengthening its supply capabilities, and driving innovation in the engineering plastics sector. With the establishment of the new thermoplastic compounding plant, SABIC is poised to play a pivotal role in shaping the future of advanced materials in various industries both in China and globally.

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