Saudi Basic Industries Corporation (SABIC) 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 Al-Saud.
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.
â€œWe are very pleased to confirm the completion of this acquisitionâ€, said Prince Saud.
â€œThis acquisition will significantly broaden SABICâ€™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 organizationâ€, he said
Mohamed Al-Mady, SABIC Vice Chairman and CEO, added, â€œWe 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 SABICâ€™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 regions.â€
â€œSABIC Innovative Plastics is another strategically important step in our global growth and ongoing commitment to serve our customers â€“ both in terms of geography and in meeting their needs for innovative plastics solutions and products that deliver outstanding valueâ€, he said.
Following earlier acquisitions of DSM and Huntsmanâ€™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 customers.
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 LexanÂ®, CycolacÂ®, GeloyÂ®, NorylÂ®, CycoloyÂ®, ValoxÂ® and UltemÂ®.
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