EPCA '07: SABIC Europe wants to diversify - CEO

30 July 2007 17:30  [Source: ICIS news]

BERLIN (ICIS news)--SABIC Europe wants to develop in central and eastern Europe and diversify the portfolio beyond polyethylene (PE) and polypropylene (PP), chief executive Boy Litjens said on Sunday.

Litjens said SABIC Europe would either acquire or invest in businesses close to the cracker, without specifying product areas.

“We are keen on developing new market and product combinations,” Litjens added on the sidelines of the annual European Petrochemical Association (EPCA) meeting.

The European strategy is based on parent company SABIC’s 20:20 vision which aims for a portfolio with a 20% specialty element, he said.

SABIC’s 2006 acquisition of Huntsman’s European petrochemical business based around the 865,000 tonne/year cracker at Wilton on Teesside in the UK had helped it achieve 2010 targets early, Litjens said.

It had also helped the company re-write its strategy to include further growth. SABIC Europe shelved plans for a new cracker and downstream units in the Netherlands following the $700m acquisition.

SABIC Europe is evaluating plans to utilise 400,000 tonnes/year of propylene from the Wilton cracker and to strengthen the aromatics business – which produces cyclohexane, benzene, mixed xylenes and paraxylene, Litjens said.

The aromatics upgrade could involve an expansion of reformate extraction capacity at the site.

The company’s 400,000 tonne/year low density polyethylene (LDPE) plant at Wilton will come on-stream in the second quarter of next year, he added.

Synergies with the former GE Plastics business in Europe were being explored following SABIC's $11.6bn acquisition of the business in August, Litjens said.

By: Nigel Davis
+44 20 8652 3214

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