p>Higher international petrochemical prices have helped Saudi Basic Industries Corporation (Sabic) gain a dramatic 113 per cent increase in net profits to SR3.63 billion ($967 million) in 2000 compared with the figure of SR1.7 billion ($455 million) registered in 1999.
Sabic also announced record sales revenues of SR24.6 billion ($6.56 billion) in 2000, sharply higher from the previous year's level of SR19.18 billion ($5.11 billion).
The company also indicated that expansion programmes could raise annual production capacity to around 35 million tonnes this year.
Minister of Industry and Electricity and chairman of Sabic's board of directors Dr Hashim A. Yamani attributed the surge in profits to an improvement in global petrochemical prices in 2000 and the company's improved overall performance resulting from several efficiency programmes that were being implemented by management. He noted that Sabic marketed more than 21 million tonnes of output that were available for sales last year.
Yamani praised the efforts of Sabic's management in implementing programmes to improve efficiency in operations, production and marketing. He said the company had embarked upon a massive internal transformation project designed to bring qualitative changes to the organisation.
He was referring to Sabic's move to acquire and implement a preconfigured business solution to integrate the company's global information systems.
"The project is expected to transform Sabic by linking all its operational, marketing and administrative activities under a unified network, enabling close control, good planning and smooth operations, upgrading employee skills, meeting customer requirements and reducing operating and marketing expenses," Sabic said in a release.
Yamani said the programme would strengthen the company's position in the international market by making it more efficient and competitive while supporting further growth.
Vice chairman and managing director Mohamed Al Mady said he was pleased with the financial results for 2000 and that Sabic would go ahead with its strategic plans to expand as a global company. He said the several expansion projects that came on stream last year would boost Sabic's annual production capacity to around 35 million tonnes this year.
Al Mady said the year also saw Sabic's Saudization rate move up by three per cent to 75 per cent of the total work force. He noted that in some manufacturing affiliates the rate was higher than 90 per cent.
"These figures underline Sabic's and its affiliates' commitment to human resources development and training," Al Mady said.
Sabic was established in 1976 to ad value to Saudi Arabia's natural hydrocarbon resources. Today it is one of the world's leading international petrochemical companies in terms of sales and product diversity. Headquartered in Riyadh, Sabic is also the Middle East's largest non-oil industrial company.
Its businesses are grouped into five core sectors: basic chemicals, intermediates, polymers, fertilisers and metals. Each sector consists of several strategic business units that are entirely dedicated to the customers they serve.
