On August 1, SABIC, a global leader in diversified chemicals, signed a potential investment agreement with the Fujian government, facilitated by the Saudi Ministry of Energy. The agreement outlines plans to establish an engineering thermoplastics compounding plant in Fujian Province, China. This strategic move aims to expand SABIC’s manufacturing capabilities and enhance its presence in the Chinese market, leveraging the growing demand for advanced materials and reinforcing its global footprint in the chemicals industry.

The agreement was signed during an official ceremony at the Saudi Ministry of Energy in Riyadh, attended by notable figures including Zhou Zuyi, Party Secretary of Fujian Province; Ahmed Al-Zahrani, Assistant Minister for Development and Excellence Sector at the Ministry of Energy; and Abdulrahman Al-Fageeh, CEO of SABIC. The official signatories included Sami Al-Osaimi, SABIC’s Executive Vice President of Polymers, and Ma Changjian, Deputy Director of the Fujian Zhangzhou Gulei Port Economic Development Zone Administration Committee.

This new investment highlights SABIC’s commitment to addressing the specific needs for innovative solutions from its local customers in China. It also emphasizes the company’s dedication to enhancing its presence in the Chinese market and contributing to the sustainable and high-quality development of the global chemical industry.

The proposed plant will be in the Gulei Port Economic Development Zone in Zhangzhou, Fujian. This facility is designed to produce pelletized LEXAN™ Polycarbonate (PC) and CYCOLOY™ PC/ABS blends, which will be used in advanced materials for diverse industries such as electrical and consumer electronics, automotive, and emerging fields like solar energy, electrification, and 5G technology. The plant will feature state-of-the-art compounding lines, color development capabilities, and advanced machinery. These facilities will enable SABIC to collaborate closely with customers and partners to develop innovative engineering plastic solutions tailored to evolving industry needs.

Abdulrahman Al-Fageeh, CEO of SABIC, highlighted that the new investment agreement represents a major milestone in SABIC’s expansion efforts in China, demonstrating their sustained commitment to the market. This initiative aims to enhance their supply capabilities in compounding products by leveraging synergies with both upstream and downstream partners. The project is designed to deliver innovative and high-quality material solutions to the Chinese market. Al-Fageeh emphasized SABIC's intent to strengthen collaborations with both global and local partners, reinforcing their commitment to mutual growth in the region.

In addition to the upcoming engineering thermoplastics compounding plant, SABIC currently operates the SABIC Technology Center in Shanghai, alongside three compounding plants located in Guangzhou, Shanghai, and Chongqing. The company maintains a presence in 17 cities across Greater China, underscoring its extensive regional footprint. The upcoming plant is expected to enhance synergies with SABIC’s existing joint ventures, SABIC FUJIAN Petrochemicals Co. Ltd. (SFPC) and SINOPEC SABIC Tianjin Petrochemical Co. Ltd. (SSTPC) in delivering specialized solutions and products.