Joint Ventures: Growth through Partnership

SABIC is an industry leader that is transforming and shaping the future of the chemicals sector. As one of the world’s largest diversified chemical companies, we have a deep and diverse portfolio which is supported by having the right partners and joint ventures (JVs). The strength of our relationships allows us to reliably support our customers’ needs and power their ambitions. In doing so, we ensure our success and the success of our partners, shareholders and other key stakeholders.

SABIC works with all its JVs/affiliates to ensure strong governance and driving best in class practices

GLOBAL GROWTH THROUGH PARTNERSHIPS 

Since SABIC’s establishment, our culture of partnerships has played a vital role in driving our long-term business growth strategy. We are always open to the possibility of entering new joint ventures globally and capitalizing on shared resources, expertise and market penetration. Of course, to succeed in our partnerships, we know the importance of prioritizing best-in-class governance and assurance.

SABIC’s long history of growth through partnerships began in Saudi Arabia, where local and foreign partners have played a major role in supporting our production and manufacturing capabilities. This started in 1983 with Al-Jubail Fertilizer Company (Al-Bayroni), and other joint ventures followed with leading organizations. These included Mitsubishi Gas Chemical, Exxon, Mobil, Celanese, and Duke Energy, among many others. Some of our more recent world-class partners have also included Sinopec, Clariant, and SK Geo Centric, among others.

SABIC successfully oversees the strategy and performance of all its JVs – to meet and exceed shareholders expectations

Partnerships and joint ventures have played a central role in SABIC’s global expansion strategy over the years. As a key example, our first joint venture in China was with SSTPC (Sinopec SABIC Tianjin Petrochemical Co. Ltd), paving the way for us to offer value-added products to customers in the country and wider region. SABIC’s ability to successfully oversee the performance of all its joint ventures has been a key enabler of the organization’s global expansion throughout the years.
One of our most recent and high-profile joint ventures has been with ExxonMobil, in establishing a petrochemicals manufacturing facility in the US Gulf Coast – known as Gulf Coast Growth Ventures (GCGV). This facility, which announced the successful start-up of operations in January 2022, will play a major role in strengthening SABIC’s position in the US market. 
Another recent highlight saw us partner with BASF and Linde in 2021 to realize the world’s first electrically heated steam cracker furnace. Through this development, CO2 emissions could be reduced by up to 90% in future large-scale industrial applications.

JOINT VENTURE GOVERNANCE

At SABIC, we are always focused on growing, innovating and enhancing our market position wherever we operate. We continuously evolve and seek new world-class joint ventures, with an emphasis on robust governance to drive our transformation.  
In 2015, SABIC established its Joint Venture Affairs (JVA) function, which over the years has played a major role in developing and implementing the standards and processes that guarantee our corporate interests are understood, protected, and advanced through existing and future joint ventures. 
The strength of our joint venture governance was recently recognized by Ankura, a leading global business advisory and expert services firm. It established a set of objective tests to allow companies to calibrate the governance of their JV portfolios. This includes a robust benchmarking model and measuring criteria which factors in elements like organizational structure – and financial and environmental performance. In 2020, the performance of SABIC was measured against these metrics and recognised as the top-ranked chemical company among industry peers.
SABIC’s proven history in joint venture excellence, and its approach to JV portfolio governance, plays an integral role in the growth of the business. By opening doors to new global investment opportunities, and strengthening our manufacturing and technological capabilities, joint ventures are helping us realize our vision to become the preferred world leader in chemicals.