- SABIC today announced it is undertaking a transformation process aimed at creating a more agile, focused and cost-efficient organization that meets the needs of its customers more effectively. The company’s new organizational structure is expected to be in place by January 1, 2016.
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- SABICPOLPR080EN1015 SABIC transformation
The reorganization follows a comprehensive review of the challenges SABIC faces in the context of the company’s 2025 strategy — including changes in the market landscape as well as the need to drive technology and innovation. To meet these challenges, the company is optimizing its existing portfolio while at the same time investing in the innovations that are required for future growth.
As a result of this optimization, the commodity products of the Innovative Plastics Strategic Business Unit (SBU) will now be housed in the Chemicals and Polymers SBUs. The remaining Innovative Plastics’ solutions will fall under a newly created SBU called Specialties. This business will serve as the exclusive home for SABIC specialty solutions. Along with the Performance Chemicals SBU, the portfolio of which was reallocated earlier, the Innovative Plastics SBU will cease to exist.
“This reorganization will focus resources more intensively on the needs of each line, enhancing customer intimacy with more focused solutions provision and helping move SABIC to the next level of portfolio product management”, said Yousef Abdullah Al-Benyan, Acting Vice Chairman and CEO of SABIC. “We must ensure that our operating model meshes ever more closely with the needs of our customers”.
One of the drivers of this change is the differing technology priorities of commodity and specialty businesses. The future of the commodity line will depend heavily on innovations around advancing feedstock technology. Specialty products face separate technology challenges, including the need to seek out technology acquisitions that will enrich SABIC’s existing portfolio.
“SABIC will be able to leverage common product synergies and drive greater focus on innovation based on what matters most to customers”, Mark Williams, SABIC Vice President Europe, added.
Positions will be optimized as the company creates a more streamlined, highly effective organization, creating new opportunities for SABIC employees, but also resulting in a reduction of approximately 140 full-time equivalent (FTE) over the next three years (until end 2017) positions for Europe.
“SABIC is committed to making decisions around staffing quickly, transparently and fairly,” Mark Williams, SABIC Vice President Europe said. “Where relevant, employee representative bodies have been informed and consultation requirements are being followed.”
“We are confident that these steps will lead to a stronger, more agile, more customer-oriented SABIC, focusing intensively on growth and innovation,” Mark Williams, SABIC Vice President Europe said. “We have strong ambitions in terms of growth, market position and innovation. Our global 2025 strategy is to be the preferred world leader in chemicals by delivering ‘Chemistry that Matters™’. This includes striving for excellence in areas, such as customer value, environmental protection, health and safety, cost competitiveness and sustainable profit.”