Launch of SABIC Innovative Plastics Expands SABIC's Global Presence

Aug 31, 2007, 01:00 ET from SABIC

    NEW YORK, Aug. 31 /PRNewswire/ -- Saudi Basic Industries Corporation
 (SABIC) today announced the completion of its purchase of GE Plastics from
 General Electric for a purchase price of US $11.6 billion. The announcement
 was made by SABIC Chairman, HH Prince Saud bin Abdullah bin Thenayan
     The former GE unit is now SABIC Innovative Plastics, a new business
 addition to SABIC that will focus on the global growth of thermoplastics
 and engineering plastics through innovation to serve the automotive,
 electronics, healthcare, and construction sectors. Brian Gladden has been
 appointed CEO of SABIC Innovative Plastics.
     "We are very pleased to confirm the completion of this acquisition",
 said Prince Saud.
     "This acquisition will significantly broaden SABIC's plastics product
 portfolio and provide access to new global markets. The people, products
 and technologies of SABIC Innovative Plastics bring a legacy of material
 innovation and expertise that I believe will enable SABIC to further
 strengthen and grow its position as a world-class leader in the plastics
 industry. We will maintain our commitment to the people, communities and
 facilities that have contributed to this world-class organization", he
     Mohamed Al-Mady, SABIC Vice Chairman and CEO, added, "We were able to
 secure the required financing due to recognition of SABIC in the global
 financial and capital markets, sound business profile of SABIC Innovative
 Plastics and its world-class diversified product portfolio. Hence, we
 successfully completed the deal on time, despite the prevailing turbulence
 in the global credit markets. This acquisition will further enhance SABIC's
 position amongst the leading global companies. Our global manufacturing
 capabilities will be further expanded to include significant additional
 plants and compounding operations in the Americas, Europe and Asia Pacific
     "SABIC Innovative Plastics is another strategically important step in
 our global growth and ongoing commitment to serve our customers -- both in
 terms of geography and in meeting their needs for innovative plastics
 solutions and products that deliver outstanding value", he said.
     Following earlier acquisitions of DSM and Huntsman's petrochemicals
 businesses in Europe, SABIC now has more than 30,000 employees. The company
 has an expanded global network of manufacturing facilities, Research &
 Technology centers and sales offices. With a presence in more than 100
 countries, SABIC is well-positioned to meet the needs of its global
     SABIC Innovative Plastics is a global supplier of plastic resins and
 compounds widely used in automotive, healthcare, consumer electronics,
 transportation, performance packaging, building and construction,
 telecommunications and optical media applications. The company manufactures
 and compounds polycarbonate, ABS, ASA, PPE, PC/ABS, PBT and PEI resins, as
 well as the LNP line of high-performance specialty compounds, under such
 well known brand names as Lexan(R), Cycolac(R), Geloy(R), Noryl(R),
 Cycoloy(R), Valox(R) and Ultem(R).
     The Specialty Film and Sheet division of SABIC Innovative Plastics
 manufactures high-performance Lexan sheet and film products used in
 thousands of demanding applications worldwide. The dedicated automotive
 organization is an experienced, worldwide supplier, offering leading
 plastics solutions for five key automotive segments: body panels and
 glazing; under the hood applications; component; structures and interiors;
 and lighting.
     (R) Trademarks of Sabic Innovative Plastics Holding BV and its affiliates.
     Othman Al-Humaidi
     General Manager, Corporate Communications
     About SABIC
     Saudi Basic Industries Corporation (SABIC) is one of the world's 10
 largest petrochemicals manufacturers. The company is among the world's
 market leaders in the production of polyethylene, polypropylene and other
 advanced thermoplastics, glycols, methanol and fertilizers, as well as the
 fourth- largest polyolefins producer.
     SABIC's profit rose to a record SR 20.3 billion (US$ 5.4 billion) in
 2006, a 6 percent increase on 2005. Sales revenues for 2006 totaled SR 86.3
 billion (US$ 23 billion), the highest revenues achieved by the company
 since its inception. Current assets at the end of 2006 were SR 74 billion
 (US$ 20.3 billion).
     SABIC operates six interlinked strategic business units: Basic
 Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and
 Metals. The company has significant research resources and has dedicated
 Research and Technology centers in the Middle East, the Americas, Europe
 and Asia-Pacific and a network of more than 60 global sales offices. SABIC
 has more than 30,000 employees worldwide.
     SABIC has 53 production sites worldwide. In Saudi Arabia, the company
 has 20 world-scale complexes and 19 of them are located at the two largest
     -- in Al-Jubail and in Yanbu. Some of these complexes are operated with
 multi-national joint venture partners such as ExxonMobil, Shell and
 Mitsubishi Chemicals. SABIC produces in 22 locations in the Americas and 16
 locations in Asia-Pacific. In Europe, SABIC has 14 production sites.
 SABIC's overall production has increased from 27 million metric tons in
 2001 to 49.1 million metric tons in 2006.
     Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi
 Arabian Government decided to use the hydrocarbon gases associated with its
 oil production as the principal feedstock for production of chemicals,
 polymers and fertilizers. The Saudi Arabian Government owns 70 percent of
 SABIC shares with the remaining 30 percent held by private investors in
 Saudi Arabia and other Gulf Cooperation Council countries.