Urethane Blog

Sabic and Aramco Sales Changes

April 30, 2021

  • Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value
    édité le 29/04/2021 – Plus de news de “ARAMCO” – Voir la fiche entreprise de “ARAMCO
Aramco and SABIC announce plans to realign marketing and sales, commercial and supply chain activities to drive efficiency and add customer value

  – SABIC will focus on petrochemicals and Aramco Trading Company will focus on fuel products
  – Changes reflect that SABIC is now the chemicals arm of Aramco, in line with long-term strategy
  – Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering to global customers

Aramco and SABIC announce their intention to transfer the marketing and sales responsibility for a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products to Aramco Trading Company (ATC).

The effect of these changes, planned to be implemented on a phased basis during 2021, subject to the necessary consents being obtained, will focus SABIC on petrochemicals products and ATC on fuel products.

This is a significant step in aligning the Aramco and SABIC strategies, following Aramco’s acquisition of a 70% stake in SABIC in June 2020.

Aramco and SABIC will continue to review options for further global marketing and sales transfers across product-producing companies within the Aramco group portfolio.

Benefiting customers

The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and after-market services and solutions.

Ibrahim Al-Buainain, Aramco Trading Company President and CEO, said: “The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and SABIC’s respective product portfolios as we strive to create added value for our customers and shareholders.

“Together, Aramco Trading Company and SABIC are focused on providing a world-class products and services offering. These changes will place us in an even stronger position to deliver market-leading innovation and value.”

Abdulrahman Al-Fageeh, SABIC Executive Vice President – Petrochemicals, said: “By leveraging and optimizing our complementary combined product portfolios we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia.

“These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition.”

About the marketing and sales transfers and changes

Responsibility for the global marketing and sales of certain Aramco petrochemicals and polymers products and those of its joint ventures and affiliates will transfer to SABIC, initially focused on: PRefChem (Pengerang Petrochemical Company Sdn. Bhd.); SADARA (Sadara Chemical Company); and, S-Oil Corporation (S-Oil Corporation, South Korea).

After completing the consolidation of petrochemical products, SABIC will market the following products, which include both existing products and extensions to its portfolio: HDPE, LLDPE, LDPE, PP copolymer, PP homopolymer, PP terpolymer, ethylene vinyl acetate copolymer(EVA), PMMA, PA6, MEG, DEG, TEG, Mono-Ethanolamine (MEA), Di-Ethanolamine (DEA), Tri-Ethanolamine (TEA), Ethylene diamine (EDA), DiEthyleneTriamine (DETA), ortho-Toluenediamine, Polymeric Methylene Diphenol Diisocyanate (PMDI), Toluene diisocyanate (TDI), Propylene Glycols, Polyols, Propylene Oxide, MMA, Butyl Glycol Ether, Acetone and Phenol.

In parallel, responsibility for offtake, resale and sourcing of a number of existing SABIC fuel products globally (Benzene, MTBE, gasoline blending components and EU cracker feedstocks) will transfer from SABIC to ATC. Sales of Aramco Para-Xylene will remain with ATC.

A number of marketing and sales transfer exclusions currently apply, and there are therefore no changes planned to the following:

  – Aramco: excess production of Olefins.
  – ARLANXEO: portfolio products (rubber and elastomer).
Motiva: portfolio products (cyclohexane, propylene and ethylene).
  – S-Oil: responsibility for domestic marketing and sales in Korea.

About the commercial and supply chain activity transfers and changes

Responsibility for the commercial aspects of liquid bulk marine shipping services will be consolidated under ATC (including chemicals and feedstock), while responsibility for the shipping of all solid products and customer product delivery will be consolidated under SABIC.

About Aramco

Aramco is a global integrated energy and chemicals company driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s oil supply to developing new energy technologies, our global team is dedicated to creating impact in all that we do. We focus on making our resources more dependable, sustainable and useful, promoting stability and long-term growth around the world. www.aramco.com

About SABIC

SABIC is a global diversified chemicals company, headquartered in Riyadh, Saudi Arabia. It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific, making distinctly different kinds of products: chemicals, commodity and high performance plastics, agri-nutrients and metals.

SABIC supports its customers by identifying and developing opportunities in key end-use applications such as construction, medical devices, packaging, agri-nutrients, electrical and electronics, transportation and clean energy. Production in 2020 was 60.8 million metric tons.

The company has more than 32,000 employees worldwide and operates in around 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 9,946 global patent filings, and has significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia.

https://www.euro-petrole.com/aramco-and-sabic-announce-plans-to-realign-marketing-and-sales-commercial-and-supply-chain-activities-to-drive-efficiency-and-add-customer-value-n-i-22172

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