Sipchem Marketing Company (SMC), an affiliate of the Saudi International Petrochemical Company (Sipchem), took another important step forward to strengthen its global petrochemical marketing and service delivery when it formally opened its office in Singapore.

The opening ceremony was attended by Sipchem’s chairman, Abdulaziz Al Zamil, and the chairman of SMC, Ahmad Al Ohali.

“Singapore is a well-established and important logistics and trading hub for the petrochemical industry and an ideal gateway for delivering excellent service to customers throughout Asia,” said Al Zamil.

Al Ohali emphasised that the Singapore office demonstrated SMC’s commitment to delivering world-class services to its customers throughout Asia.

“The opening of an office in Singapore signals a clean break from our past practice of servicing customers’ needs through off takers and distributors, and emphasises the importance SMC places on its customers throughout Asia” said Al Ohali.

“The Sipchem Singapore office will initially sell and market all Sipchem’s products directly to enhance transparency and customer relations … This year, Sipchem is marketing globally all of its products from the butanediol plant and it is also increasing its marketing volumes of methanol. Our marketing expansion plans have been completed in anticipation of selling new products that will come on steam later during this year” Al Ohali added.

The company’s methanol plant

SMC was formed in 2007 with the express purpose of delivering world-class services and petrochemical products internationally. Since its formation it has successfully expanded its operations in its key markets in the Middle East, Europe and Asia. In 2011 the SMC Board of Directors recognised that the sustainable delivery of world-class services and products requires that SMC have a direct relationship and establish a tangible presence with its customers. Towards this end SMC established an office in Switzerland to provide marketing and logistic services to its customers in Europe.

“The Swiss operation has enabled SMC not only to service the needs of its customers but also provided a solid base for growth throughout Europe. The opening of the Singapore office positions SMC close to its customers throughout Asia, gives SMC access to an outstanding infrastructure and is the ideal platform for SMC to further expand its business throughout the region,” the company said.

The company focuses primarily on the marketing and sale of methanol, butanediol, tetrahydrofuran, acetic acid and vinyl acetate monomer. During 2013 its product portfolio will expand to include ethylene vinyl acetate, low density polyethylene, ethyl acetate and butyl acetate with further products to be introduced in 2014.

PROFIT SLUMP
Meanwhile, Sipchem posted a 57.5 per cent fall in first-quarter net profit, citing shutdowns at a number of plants during the period for the decline in earnings.

The firm reported a net profit of SR64.5 million ($17.2 million) for the three months to March 31, it said in a bourse statement, down from SR151.6 million in the corresponding period of 2012.

The profit figure missed estimates. Seven analysts polled by Reuters on average forecast a first-quarter net profit of SR118.1 million. Sipchem attributed the profit drop to shutdowns at four manufacturing plants during the quarter, which in turn reduced product sales, while some product prices also fell.