SABIC nets GE Plastics

New York – Saudi Basic Industries Corp. is to acquire GE Plastics for $11.6 billion by the third quarter of 2007, subject to regulatory approvals, SABIC and GE announced 21 May.

The deal adds another tick to SABIC’s shopping list, which has also included the acquisition of DSM’s petrochemicals business in Europe and Huntsman’s petrochemicals business in the UK.

“This acquisition represents another important step in SABIC’s growth and diversification to become one of the world’s leading manufacturing companies,” said Mohamed Al-Mady, vice chairman and CEO of SABIC.

GE Plastics is a global supplier of plastic resins widely used in automotive, healthcare, consumer electronics, transportation, performance packaging, building and construction, telecoms and optical media applications. It manufactures and compounds polycarbonate, ABS, SAN, ASA, PPE, PC/ABS, PBT and PEI resins, as well as speciality compounds.

With 2006 sales of $23 billion, SABIC is one of the world’s 10 largest petrochemicals manufacturers and a world market leader in the production of polyethylene, polypropylene, glycols, methanol and fertilizers as well as the fourth largest polymer producer.

SABIC operates two large production sites in Saudi Arabia – in Al-Jubail and in Yanbu – comprising 19 world-scale complexes. The company has six strategic business units: Basic Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and Metals.