Saudi Basic Industries Corporation, or Sabic, is establishing itself as a "local player" in Asia, its company's vice-chairman and CEO Mohamed Al-Mady told Platts late Tuesday.
Al-Mady was speaking during an interview at the sidelines of the 25th International Exhibition on Plastics and Rubber Industries, more commonly known as Chinaplas 2011, in Guangzhou, China.
Part of the company's growth plans is to strengthen its presence in Asia. The company had announced at a press conference earlier Tuesday that it would build two new technology and innovation centers in Shanghai and Bangalore.
Both centers will be ready by 2013, and the Shanghai T&I center will be larger than its current headquarters in the same city, and will replace it when completed.
The company's executive vice president for polymers, Khaled Al-Mana, said in a separate interview that having T&I centers in Asia would allow the company to work more closely with customers to develop new products, in what he calls a "one-stop shop."
JV IN INDIA 'A MATTER OF TIME'
A Sabic joint venture in India is "just a matter of time," Al-Mady said.
"India is very important for us," said Al-Mady. "But India has not liberalized to outside investments [in petrochemicals]."
He added that the China's five-year plans are "transparent", which has led to the company investing in the country.
"But we are ready to seek opportunities [in India]," he said. "India is very close to the Middle East ... it's only two days by boat."
However, Al-Mady did not give further details of possible investment plans in India.
OTHER EXPANSIONS & NEW PROJECTS
Outside India, Sabic has plans to "modernize and expand" its existing facilities.
Al-Mady declined to comment on details about the company's plans, saying that they would be identified in 2011.
However, he noted that on the company's priority list are facilities built 30 years ago "to make them more efficient."
Meanwhile, Sabic has called for tenders to build a 1 million mt/year urea plant in Jubail.
Al-Mady said the urea plant would allow the company to use the carbon dioxide produced from the ammonia plant -- which produces large amounts of the gas -- in line with Sabic's sustainability goals.
The contract is expected to be awarded in third quarter of this year.
