SearchSABIC In 2020: A Demonstration Of Our Resilience, Innovation And Adaptability
Disruption triggered by the COVID-19 pandemic has posed unprecedented challenges to the global economy. GDP decreased by approximately 4.3% in 2020, according to the World Bank. At SABIC, we worked determinedly to protect our employees, contract partners, customers, and the communities in which we operate.
As we navigate the “new normal”, the agility of SABIC, coupled with a spirit of collaboration and solidarity, continues to drive the evolution of our global operations. The chemical industry is facing changing and uncertain structural trends, accelerated by the impacts of COVID-19. While the industry will continue to face challenges fueled in part by low oil prices and low demand, our adaptability positions us well for long-term growth.
We are optimistic about our industry's resilience generally and our ability to respond to our customers’ needs. Meanwhile, we are embracing innovation and the new future of work, while remaining focused on our long-term growth ambitions and leveraging the strength of our global supply chain, operational efficiencies and maintaining capital discipline. These measures are enabling us to mitigate short-term challenges and positioning us to thrive in the new economic landscape of 2021 and beyond.
Innovation And Problem Solving
The challenges of the past year have also created new opportunities. We continued to adapt and enhance SABIC’s operating model, allowing us to better understand and anticipate customer needs and develop solutions that drive value throughout our customers' businesses. The strength of our global supply chain, operational efficiency, and capital discipline enabled us to mitigate many short-term challenges arising from the pandemic.
We have worked with our customers and pivoted production in response to the pandemic. We continue to supply critical materials – such as our LEXAN™ polycarbonate portfolio of sheet and film products – which support the urgent production of protective equipment, ventilators, screens, barriers and face shields. Digitalization of our supply chain has enabled greater customer connectivity, underpinned by the implementation of advanced technologies to include blockchain and artificial intelligence.
Digitalization more broadly is a game-changer for SABIC, with the power to further transform our business as we steadily unlock the power of machine learning, big data and artificial intelligence to improve our competitiveness and strengthen our leadership in the chemical industry.
Sustainability At The Core
There is a renewed urgency to protect the environment, alongside global societal and governance priorities which will shape the new normal. Aligned firmly with the priorities of the United Nations Sustainable Development Goals (SDGs), our commitment to sustainable solutions seeks to maximize the value of used plastic and build a circular economy while meeting manufacturers and consumers' needs.
In 2020, we scaled up our TRUCIRCLETM portfolio to address the requirements of the circular economy. We are proud to be the world’s first petrochemical company to scale-up high-quality processes for the chemical recycling of used mixed plastic back to the original polymer for commercial application.
We are driving several transformative initiatives worldwide, including our new polycarbonate facility in Cartagena, Spain. The facility is set to become the world’s first large-scale chemical production site to be run entirely on renewable power by 2024 and will help support SABIC in reaching our 2025 clean energy targets. As part of a strategic collaboration, Iberdrola, one of the world’s biggest electricity utility companies, will invest almost €70m to construct a 100MW solar PV facility with 263,000 panels, on land owned by SABIC, making it the largest industrial renewable power plant in Europe.
To achieve sustained global growth, major companies must elevate their worldwide citizenship and generate value beyond the bottom line. We are proud to have recently received an EcoVadis Platinum medal in recognition of our high standards in CSR and sustainability performance. Our commitment to sustainable solutions and the implementation of digitalization will serve as the bedrock to support a culture of ingenuity that encourages innovation.
The Future Of The "New Normal"
The COVID-19 pandemic and our new journey with Saudi Aramco as majority shareholder both represent major shifts which will continue to reshape how we think, act, and build for the future. SABIC will continue as a leader of the petrochemical industry in Saudi Arabia, committed to becoming the world leader in chemicals and supporting the realization of Saudi Vision 2030.
The pandemic has accelerated the adoption of new ways of working and demanded a rethink on the future of work and the value that companies can create for employees, shareholders and broader society. Industrial sectors are proving to be the backbone of global economic recovery, translating private and public spending into tangible social and economic benefits.
At SABIC we have been working on our transformation program since 2016, and since then we have been at the forefront of future-proofing our global business, from investing in digitalization to prioritizing sustainability and working with our partners and people to boost growth and enhance value creation. This includes our NUSANED™ initiative, which supports Saudi Arabia’s broader economic development.
These elements will shape our transformation journey in 2021 and provide a benchmark for others in the chemical industry, with the understanding that long-term economic recovery and growth is built on collaboration. Organizations that will continue to thrive in the long-term will be those that understand and embrace the opportunities emerging from these changes, new technologies and dynamic modes of work.