Magazine November/December 2010
Transcription
Magazine November/December 2010
SABIC November/December 2010 Issue 100 Gulf petrochemical industry THE CHALLENGE OF SUSTAINING GROWTH 4 Riyadh Techno Valley to be ready in 2012 NEWS Round-up of news stories from SABIC operations around the world General Supervisor: Mohamed H. Al-Mady Vice-Chairman and CEO Editor-in-Chief: Samir A. Al-Abdrabbuh Vice President Corporate Communications Acting Managing Editor: Vinod Menon Media & External Communications Contributions to SABIC magazine are welcome and may be sent to: [email protected]. Articles and letters received may be edited for length and clarity. Every effort has been made to report accurate information in this publication. However, neither SABIC nor the publishers vouch for its accuracy, neither do they indemnify any loss arising through the use of the information. The views or opinions expressed herein do not necessarily reflect those of SABIC or the publisher. Saudi Basic Industries Corporation, P.O. Box 5101 Riyadh 11422, Saudi Arabia. Publisher: 16 SABIC makes a major impression at K 2010 EXHIBITIONS & CONFERENCES SABIC honored for sponsoring international energy forum Metals SBU attends ‘Big 5’ show in Dubai Performance Chemicals debuts at SEPAWA SABIC sponsors CHEMINDEX 2010 in Bahrain Show of strength at K 2010 SUSTAINABILITY New solutions backed by validation process, scorecard Green portfolio in a nutshell COVER STORY The Fifth Annual GPCA Forum addresses the challenge of sustaining growth for Gulf petrochemicals The just-concluded Annual GPCA Forum caps an extremely busy season of industry exhibitions and conferences. While the Forum projected a very positive outlook for the region’s resource-driven industry and stressed the importance of innovation, SABIC’s emphasis has also been on growth and innovation, as well as sustainability and customer focus. It has been a long season, with the K 2010 leading the pack of events that included the energy forum in Riyadh, Chemistry in Industry in Bahrain, Big 5 in Dubai and SEPAWA in Germany, with each event having its own focus. With so much happening, it is hardly surprising that this edition has plenty to report from exhibition locations. PRODUCT INNOVATION First PET tape fabric could lead to 30% material savings Noryl GTX* conductive resins offer fresh benefits to automobile OEMs SUCCESS STORY Chery’s A3CC sports coupe gains from SABIC’s unique resin combinations Plexx chooses Lexan* PC sheet for Norwegian train windows SABIC® STAMAX® LGFPP helps Hyundai win 2010 SPE Innovation Award Lexan* Thermoclear* protection for Euro 2012 stadium in Poland PRODUCT PROFILE Valox* resins offer sustainable and high-heat solutions CUSTOMER OUTREACH SABIC celebrates partnership with Asia’s glycol customers Project Manager: Khaled Al-Masri Group Editor: K. Krishnakumar Head of Design: Grigor Scott FOREWORD BEHIND THE SCENES A look at what it took for SABIC teams to compile and submit REACH dossiers The signing of the contract to build a new plastics application development center in Riyadh and the establishment of the Middle East Business Unit of SABIC Innovative Plastics underline the fact that SABIC is investing in innovation and high-end engineering plastics. SABIC is also supporting efforts to define new financing tools modelled on Islamic financing, which has gained enormous respect in global business circles. The news section reports on these and other SABIC developments including the Rabat-based North and West Africa business hub. At the K show, sustainability was a key focus area for SABIC, along with growth, innovation and customer focus. This issue devotes a full section explaining how SABIC highlighted its commitment to sustainability, including the announcement of a new methodology and scorecard to verify and support claims, as well as a quick glance through the company’s growing ‘green portfolio’ of products. The Product Innovation, Success Story and Product Profile sections too have several interesting stories to tell, demonstrating how SABIC’s products are helping the automobile and other sectors to achieve new levels of efficiency and weight reduction. REACH, the European initiative on chemicals, has been in the news for some time, and SABIC recently reached an important milestone in implementing the program by submitting key dossiers on a number of its products to the concerned regulatory body in Helsinki. Behind the Scenes explains the importance of REACH, and puts this SABIC achievement in perspective. SABIC Asia Pacific recently hosted its glycol customers to a unique customer appreciation treat at the Indonesian resort island of Bali. Customer representatives from seven countries descended on Bali and bonded with SABIC teams through a variety of exercises and interactions over two days, giving new dimensions to the concept of Customer Outreach. I am happy to note that this is the 100th issue of SABIC magazine. It would be an understatement to say that it has been an interesting journey, and we are certain that there is much more excitement to come as SABIC scales new heights in the coming years. Editor-in-Chief Senior Graphic Designer: Hussain Mohamed Al-Bakri PO Box 301292, Riyadh 11372, Tel:+966 (1) 462 3632, Email: [email protected] ©2010 Alef Publishing & Media LIFESTYLE Video games: bonding or bondage? Reprinting in whole or in part is prohibited by law except with the prior written approval of the publisher. 2 SABIC November/December 2010 November/December 2010 3 SABIC NEWS Plastics Application Development Center at Riyadh Techno Valley to be ready in 2012 The SABIC Plastics Application Development Center in Riyadh will be part of Riyadh Techno Valley The new SABIC Plastics Application Development Center (SPADC) in Riyadh will be operational by the third quarter of 2012, significantly strengthening the company’s expanding global research and innovation network. SABIC signed the construction contract for the prestigious project in Riyadh on December 1. The signing ceremony was attended by Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, Prince Faisal AlSaud, Advisor to the Saudi Ministry of Petroleum and Mineral Resources, Dr. Abdullah A. Al-Othman, Rector of King Saud University, Mohamed Al-Mady, SABIC Vice Chairman and CEO. Dr. Abdulrahman Al-Ubaid, Executive Vice President, Technology and Innovation, SABIC, and Khaled bin Masa’ad El Seif, Chairman of El Seif Engineering Contracting Company signed the agreement. About 80,000 4 SABIC November/December 2010 square meters of space has been allocated for SPADC at Riyadh Techno Valley, the science park located on the campus of King Saudi University (KSU). SPADC is expected to have built-up space of about 43,000 square meters. During the ceremony, the audience viewed graphic representations of the new facility design and were briefed on a variety of applications under development at SABIC’s application development centers in US and Europe, such as automobile bumpers, body panels, stadium seats and others. Prince Saud praised the close cooperation between SABIC and Saudi universities, including KSU. He said SPADC is part of SABIC’s 2020 strategy, which emphasizes the importance of research, innovation and creation of new industries. He thanked Prince Faisal bin Turki bin Abdulaziz Al-Saud for his efforts in supporting the project, and also acknowledged the support of Dr. Khalid bin Mohammed Al-Angari, Minister of Higher Education, Dr. Abdullah A.Al-Othman, and Azzam Shalabi, President of the National Industrial Clusters Development Program. “My sincere gratitude to all of them. I also thank the working group of SABIC, the university, and all others who have worked hard and contributed in advancing this project.” Al-Mady said that SPADC will support the continued expansion of SABIC’s new product portfolio, especially in the areas of packaging, automotive materials and compounding. He noted that the new research facility will support the growth of downstream industries. The center will collaborate with customers in developing new plastic applications and provide technical support to SABIC’s local and international customers. SPADC will be equipped with more than 300 pieces of state-ofthe-art special research equipment to be operated by more than 150 expert researchers. “It will serve as a pilot project to help build Saudi Arabia’s knowledge economy and play an active role in the transfer of technology to the Kingdom by building relations between university scientists and end-manufacturers of the plastics industries,” Al-Mady said. Al-Ubaid said that SPADC will be part of SABIC’s global network of technology centers, and will work closely with other company-owned and operated technology centers in Pittsfield in the United States, Bergen op Zoom and Geleen in The Netherlands, Bangalore in India, Shanghai in China, Seoul in Korea and Moka in Japan. The center will further enhance the relationships between SABIC, industrial investors and KSU. The world-class center will also house the SABIC Polymer Technical Support Center, currently located in Riyadh’s Second Industrial City. It will function as a technical support hub and training center for SABIC’s customers worldwide, Al-Ubaid added. Largest of its kind in the Middle East, SPADC’s design and engineering services were provided by the local architecture firm, Zuhair Fayez, in partnership with the US-based KlingStubbins. The center building will be LEED-certified, ensuring that SPADC will be equipped with more than 300 pieces of state-of-the-art special research equipment to be operated by more than 150 expert researchers it complies with the most advanced global benchmarks for the design and operation of high-performance green buildings. (LEED – Leadership in Energy and Environmental Design – is a US-based green building certification program). SPADC’s design will be a local landmark, standing almost 60 meters high to provide graphic representation of SABIC as one of the world’s leading petrochemical companies and the largest in the Middle East. The design will also reflect SABIC’s four core values: “Inspire, Engage, Create and Deliver.” Al-Ubaid (right) signs the contract with El-Seif SPADC Riyadh will host advanced machinery and equipment November/December 2010 5 SABIC NEWS Al-Mady ranked third among ICIS Top 40 Power Players Mohamed Al-Mady, SABIC Vice Chairman and CEO, has been ranked third among ICIS Top 40 Power Players, a tribute to “the people who have led their organizations out of the depths of the recession and prepared them to achieve success in the upturn.” In its review of the Top 40, the leading chemicals and energy news service provider, ICIS, speaks in glowing terms about Al-Mady and the Power Players, “Through the dark days, a number of leaders took the steps necessary to make their companies more competitive in tougher times, while not sacrificing growth, continuing to make investments in research and development, and in capital-intensive projects... these people have led their companies out of the woods, and are again looking for growth – both organically and through acquisitions.” Speaking about Al-Mady’s strategies for the immediate future, the leading international publication says that “he is renewing his focus on ‘value-added’ derivatives such as polycarbonate and ethanolamines. In listing the top 40 power players in the industry, ICIS noted the rise of the Middle East and China as major chemical production centers and pointed out that the decade ahead will likely hold many new surprises as the balance of industrial power in the world continues to fluctuate. ICIS selected its top group based on demonstrated leadership that made their companies more competitive in tough times. The other key figures from the chemicals industry, who have been ranked one and two respectively, are Andrew Liveris, Chairman, President and CEO, Dow Chemicals, and Peter Bahnsuk Kim, CEO, LG Chem. SABIC Morocco to serve as regional hub for North and West Africa SABIC recently inaugurated its North and West Africa regional headquarters in Rabat, Morocco. The inauguration ceremony on October 25 was led by Prince Saud bin Abdullah bin Thunayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Mohamed Al-Mady, Vice Chairman and CEO, and attended by Dr. Mohammed Abdulrahman Al-Bishr, the Saudi Ambassador to Morocco, and several ministers and senior officials of the Moroccan government and diplomats representing other governments. Riad S. Al-Nasser, General Manager, SABIC Morocco received the guests at the inauguration. SABIC will rely on its Morocco office to serve the North and West Africa markets, effectively leveraging its growing influence in the region as a leading supplier of polymers, chemicals and fertilizers. SABIC has been a supplier of these products to the Moroccan and African markets for 25 years, and the new headquarters will streamline direct communications with customers. It underlines SABIC’s strong commitment to Morocco and the African continent. 6 SABIC November/December 2010 Prince Saud receives Microsoft CEO Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, received Steve Ballmer, CEO of Microsoft, at SABIC headquarters in Riyadh on November 2. Mohamed AlMady, SABIC Vice Chairman and CEO, attended the reception along with several Executive Vice Presidents and Vice Presidents of SABIC, and officials of the Royal Commission for Jubail and Yanbu, and Marafiq. Prince Saud and Steve Ballmer reviewed the vital role played by information technology in building a knowledge-based society in Saudi Arabia. They also highlighted the importance of technology in driving development and in advancing the nation’s communities. They also discussed issues of mutual interest related to IT and the use of engineering plastics to meet the needs of Microsoft Corporation. Ballmer and senior top SABIC management pose for a souvenir picture at the SABIC headquarters in Riyadh SABIC, Lummus join hands to develop toluene methylation technology SABIC has signed an agreement with Lummus Technology Inc. to jointly develop and commercialize toluene methylation (TM) technology to produce paraxylene. The agreement was signed through SABIC’s Houston-based subsidiary, SABIC Americas Inc. The TM technology was developed around a proprietary SABIC catalyst and process, and will Prince Saud and Al-Mady inaugurate the Rabat office (above); and Prince Saud with Ambassador Al-Bishr (below) SABIC has a growing customer base in the country, and local downstream businesses consider SABIC a key partner in their own success stories. SABIC is strengthening its presence in Morocco in the backdrop of a major industrial transformation taking place in the country, including the establishment of new companies in the automotive industry sector. More than 200 companies are expected to benefit from the products of SABIC Innovative Plastics and new engineering solutions. The stronger presence of SABIC in North and West Africa is also a further step towards achieving the company’s vision to be the preferred world leader in chemicals. The Morocco operations will strengthen the SABIC sales network throughout Africa. SABIC Americas and Lummus Technology teams after the signing of the agreement provide an improved process solution for polyester producers. “This project is aligned with SABIC’s strategy to be a technology provider and licensor,” said Dr. Abdulrahman Al-Ubaid, SABIC Executive Vice President, Technology and Innovation (T&I). “The T&I organization also works with all of SABIC’s Strategic Business Units (SBUs) through its global network of technology and application centers to improve manufacturing processes and develop new technologies,” he added. Al-Ubaid also noted that research excellence has played a large part in making SABIC an outstanding petrochemical success story, and stated that by continuing to invest in technology, SABIC is driving the petrochemical industry forward, creating market opportunities and products that will lead to new success stories in the industry. November/December 2010 7 SABIC NEWS SABIC Chair at Imam University will strengthen Islamic financing: Al-Mady Mohamed Al-Mady, SABIC Vice Chairman and CEO, has said that the SABIC Chair at the Imam Mohammed bin Saud Islamic University will strive to meet the challenges faced by Islamic finance industry and develop credible financial instruments that are both economically efficient and Shariah-compliant. He was speaking at the recent foundation workshop of the SABIC Chair for Islamic Financial Market Studies at Saudi Arabia’s leading Islamic university, known popularly as the Imam University. SABIC signed the agreement with the university for establishing the Chair on November 15, 2009 as part of the company’s efforts to develop and find funding channels and innovative investments that comply with Shariah. Al-Mady noted that the Islamic finance industry has been growing consistently, with creative and comprehensive concepts financing bringing more investments into the sector. Some concepts, such as those based on partnership in profits and risks, which control the relationship between financiers and borrowers, have become a catalyst for more responsible financial practices, which are now widely accepted among the banking community. The workshop was opened by Dr. Sulaiman Abdullah Aba Al-Khail, Rector, at the university’s conference building in Riyadh on November 29. The event was attended by Saud Al-Saleh, Secretary General of the Supreme Economic Council, Dr. Fahd Abdulaziz Al-Askar, Dean of the Scientific Research and Secretary General, Research Chairs Programs, Dr. Mohammed Ibrahim Al-Suhaibani, Professor SABIC Chair for Islamic Finance Market Studies, and members of the Scientific Commission of the SABIC Chair, and faculty members of Saudi universities, consultants and practitioners in the securities trading industry in the Kingdom. Al-Mady said the challenges that may slow down the growth of Islamic financing include a shortage of 8 SABIC November/December 2010 experts and absence of accounting and control standards, as well as failure to keep up with legislation and regulatory changes, and varying opinions among scholars, and legal Shariah commissions. “Our partnership with the Imam Mohammed bin Saud Islamic University is the product of close cooperation between our private sector and educational institutions to meet those challenges and achieve our common goals to promote the role of the financial sector and national investment for more sustainable economic growth,” he said. “We are committed to supporting such initiatives, which would develop the capital market since the company had already taken the lead in offering a number of Shariah-compliant financial instruments in the domestic market, by introducing Islamic Sukuk in 2006. It was followed by several other offerings in 2007 and 2008 with a total value equivalent to SR 16 billion. These Sukuks are just the beginning of a greater reliance on the means and tools to finance innovative Shariahcompliant financing to help SABIC achieve its objectives and ambitious plans for growth. “More than 85 percent of SABIC’s cash investments, which amount to roughly SR 58 billion, are compatible with Shariah. The percentage is steadily increasing, as we continue to work side by side with our partners in the local and foreign banks to develop more innovative Islamic investment products in the context of our role and our social responsibility as a leading national company.” SABIC wants its Chair at the university to be internationally recognized in the fields of development and innovation of new and appropriate financial instruments, combining legal credibility and economic capacity. The SABIC Chair also seeks to provide a research environment with high quality, attract top capabilities in the field of Islamic securities, organization of markets and promoting production and publication of leading research in the field of Islamic banking to help support the strategy of sustainable development in the Kingdom. It also seeks to contribute, along with government and private agencies concerned with regulating and providing financial services, to make Saudi Arabia an international financial center for Islamic financial services. The SABIC Chair research topics focus on financial instruments based on religious forms such as “Ejarah”, “Murabaha” and “Istisna” instruments as well as other instruments based on profit-sharing, in addition to other tools based on forms of partnerships such as equities and instruments of speculation and sharing. The Chair will also focus on developing financial instruments designed for risk management and hedging, restructuring of financial markets and the role of specialized companies, and the development of investment funds in the structures of Islamic financial markets. It will also encourage the development of financial instruments specialized in financing companies and governments, and funding and investment of the endowments, providing support for real estate development and infrastructure projects, and the development of surveillance and financial control systems designed to stabilize financial markets and boost liquidity. The SABIC Chair annually funds five research grants and four MA and PhD studies that conform to specific standards and conditions. It also supports the efforts of companies with institutions of trading in the securities industry both within and outside the Kingdom. The research topics of the Chair for 2011 include the development of a model to evaluate and classify Islamic Sukuk and the conduct of market surveys for such instruments, discussing ways of integration of financial markets in the GCC. UK Trade & Investment MD visits SABIC Mohamed Al-Mady, SABIC Vice Chairman and CEO, received at SABIC headquarters in Riyadh on December 1 Edward Oakden, Managing Director, UK Trade & Investment, and Paul Williams, Director, UK Trade & Investment Saudi Arabia. They were accompanied by Sir Tom Phillips, UK Ambassador to Saudi Arabia. Al-Mady discussed with the UK delegation issues of mutual interest and ways of boosting cooperation between SABIC and the UK business sector, within the frame of the economic relations between Saudi Arabia and UK. Al-Mady with the UK delegation SABIC Innovative Plastics to establish ME and Africa business unit SABIC Innovative Plastics recently announced the establishment of a new business unit to meet growing customer demand for advanced engineering thermoplastic materials and application development expertise in the Middle East and Africa. The new organization, based in Riyadh, Saudi Arabia, demonstrates SABIC’s strong commitment to this increasingly important region – providing customers access to a robust portfolio of more than 40,000 highperformance resins. The new business unit will be led by Richard Crosby, a veteran Innovative Plastics executive and scientist. “Our innovation in materials and service has been a key differentiator in helping customers to be successful in growing and dynamic markets – from understanding their unique requirements to continuously innovating high-performance materials, technologies and services that help give them competitive differentiation,” said Charlie Crew, President and CEO, SABIC Innovative Plastics. “Under Richard’s leadership, we are committed to providing the same level of support in the Middle East and Africa to help OEMs and processors in the region create worldclass products. This new business unit will enable customers to easily leverage our expansive portfolio of solutions to meet the changing requirements of local and global markets.” The announcement, made at the recently held K 2010 trade show in Dusseldorf, Germany, is the second recent example of SABIC’s focus to bring advanced materials solutions to Middle East and Africa. “Innovative Plastics’ proven success in serving global industries such as appliances, automotive, building and construction, alternative energy and electrical components will enable us to establish and grow new customer relationships as well as create greater market demand in this growing region,” noted Crosby. “For example, the solar energy industry, a major focus area for the Middle East, uses several of our engineering thermoplastics in current Richard Crosby photovoltaic applications and will need new innovative materials for future designs. We see an opportunity to add value to the design, development and production of new applications across multiple markets helping our customers achieve their business goals.” Crosby brings 22 years of extensive experience in business development, marketing and technology to his role. Most recently he served as the General Manager of Marketing and Technology for the Innovative Plastics’ business unit in the Pacific. He holds a doctorate in chemistry from Texas A&M University. November/December 2010 9 SABIC NEWS HR hosts orientation program for SABIC scholarship students Al-Benyan addresses the students at the orientation program The Educational Programs Department of SABIC Human Resources organized an orientation program for US-bound students under the SABIC Outbound Scholarship Program at the company’s headquarters in Riyadh on October 26. Addressing the 86 students on the opening day of the three-day orientation program, Yousef Abdullah Al-Benyan, Executive Vice President, Human Resources, urged them to represent the company honorably and be ambassadors of their country and their company. He encouraged them to persevere in achieving their goals and strengthening their knowledge about science as well as social subjects. Swailem Dbas Al-Swailem, General Manager, Organization Development, highlighted the importance of the program to SABIC Human Resources. Waleed Y. Al-Kowaileet, Manager, Educational Programs, answered questions asked by the students. The program also covered an introduction to the visa procedures at the US diplomatic missions in the Kingdom. The scholarship program has selected 150 new high school graduate students this year. Fourteen students have already been enrolled in UK universities in addition to the 86 students who are headed for studies in US. The program is also sponsoring 50 fresh high school graduate students to study in the Kingdom’s universities. SABIC signs contract for storage facility at Yanbu port SABIC and the Saudi Ports Authority signed a contract on October 26 under which SABIC will obtain land on lease in the external storage area of the King Fahd Industrial Port (KFIP) in Yanbu. SABIC will construct warehouse and container facilities on the leased land for storing its products before exporting them through the port. The contract was signed by Homood Al-Tuwaijri, SABIC EVP Corporate Control, and Dr Hamoud Al Sa’adi, Director General of KFIP, in the presence of Engr. Abdulaziz Al-Tuwaijri, President of the Saudi Ports Authority and Khalid Al-Shahrani, Logistics Lead for EMDAD, SABIC’s supply chain project. The agreement paves the ground for the construction of a new Portside Logistics Facility (PLF) and the storage facilities, which will dramatically improve SABIC’s ability to manage increased export traffic through Yanbu Port. 10 SABIC November/December 2010 Abdulaziz Mohamed Al-Tuwaijri, President of the General Organization of Ports (right), presents a memento to Homood Al-Tuwaijri New polyolefin logistics center in UK reinforces commitment to customers SABIC recently announced the official opening of its state-of-the-art polyolefin logistics center in northeast England, which is replacing the company’s current logistics center in the United Kingdom. Located in Middlesbrough, Cleveland, the new facility underlines SABIC’s longterm commitment to serving its UK customers. The center’s fully scalable design will ensure that SABIC is equipped to meet current and future market demand for all the products in its broad polyolefin portfolio, which includes linear low density polyethylene (LLDPE) film, high density polyethylene (HDPE) and polypropylene (PP). The center is operated by Bertschi of Switzerland, which won the SABIC contract on the strength of its proven record in container and bulk material handling. Hans-Jörg Bertschi, President and CEO of Bertschi group, commented: “This is a major step for our company in developing a network of pan-European polymer handling facilities. We are very proud to operate this new infrastructure on behalf of SABIC, with whom we have a long standing, excellent business partnership, including in developing innovative logistics solutions.” Raf Bemelmans, European Director for the Polymer Supply Chain: “Our investment in this logistics center SABIC and Bertschi teams at the official opening in front of the transshipment platform demonstrates SABIC’s faith in the UK market as a long-term consumer of polyolefin materials. The center’s logistics systems will enable us to support the growing use of bulk Loading of 30-ft-containers in the busy plastics hub polymer handling operations that eliminate the need for manual interventions, such as ‘ripping and tipping’. Bertschi’s experience in the transportation and polymer handling industries combined with the center’s state-of-the-art design will allow us to further enhance the service we provide to our UK customer base.” Michael Allen, Sales Office Director SABIC UK says: “Our business strives to take a leadership position in petrochemicals. Among other commitments, this involves building a world-class European supply network capable of giving our customers dedicated support combined with a reliable supply of quality polyolefin products within competitive lead times. Our new logistics hub will play an instrumental part in delivering this vision.” November/December 2010 11 EXHIBITIONS & CONFERENCES SABIC honored for sponsoring international energy forum Ali Ibrahim Al-Nuaimi, Saudi Arabia’s Minister of Petroleum and Mineral Resources, recently honored SABIC for sponsoring the International Energy Forum organized by the ministry from October 18 to 20 to mark OPEC’s 50th anniversary The forum was attended by delegations from OPEC member countries as well as a number of diplomats and officials based in Riyadh. Al-Nuaimi inaugurated the forum at the InterContinental Hotel in Riyadh, in the presence of Mohamed Al-Mady, SABIC Vice Chairman and CEO. Al-Nuaimi and Prince Abdulaziz bin Salman, Assistant Minister of Petroleum and Mineral Resources, toured SABIC’s stand at the Riyadh International Exhibition for Petroleum, Gas and Petrochemical Industries SABIC Metals SBU recently participated in the ‘Big 5’ show which was inaugurated by Sheikh Mohammed bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, at the Dubai World Trade Center on November 22 Al-Nuaimi presents a memento to Al-Mady in appreciation for SABIC’s sponsorship of the forum. To the left of Al-Mady in the rear is Prince Abdulaziz bin Salman where they were briefed on SABIC’s status as a global leader in the petrochemical industry. Prince Abdulaziz also attended the SABIC-sponsored ceremony on the second day. The forum addressed various topics including the historic relations between Saudi Arabia and OPEC and the Kingdom’s efforts to stabilize the energy market. Keynote speakers from Saudi Arabia and world organizations specialized in oil, gas and related industries spoke at the forum. SABIC products on display Al-Mady, former Saudi Minister of Petroleum Hisham Nazer, and other guests view exhibits 12 SABIC November/December 2010 Metals SBU attends ‘Big 5’ show in Dubai Visitors at the exhibition The SABIC pavilion at the ‘Big 5’ show Sheikh Mohammed visited the SABIC pavilion where he was briefed on the state-of-the-art long and flat steel products. He listened to a briefing on SABIC and its achievements. The Big 5 show, which is the largest of its kind in the Middle East, features companies showcasing products and services in the construction industry from across the world, alongside leading local and regional developers, contractors, importers, manufacturers and distributors. This year’s show was packed with features such as conference, training courses and green seminars. It provides a platform for exhibitors and visitors to make use of the huge opportunities in the construction sector in the Middle East. The conference brought together leading players from across the global construction industry. In addition, Another view of the SABIC stand new concepts such as a forum for corporate CEOs and seminars for suppliers, as well as specialized educational and awareness sessions to understand the local working environment, were part of the event. November/December 2010 13 EXHIBITIONS & CONFERENCES Performance Chemicals debuts at SEPAWA SABIC sponsors CHEMINDEX 2010 in Bahrain SABIC participated in the Eighth International Conference and Exhibition on Chemistry in Industry (CHEMINDEX 2010) in Bahrain from October 18 to 20 Performance Chemicals SBU represented SABIC at the 57th SEPAWA Congress and European Detergents Conference 2010 which was held in Fulda, Germany from October 13 to 15 SEPAWA is Europe’s largest professional association representing industries dealing in detergents, cleaning products, cosmetics and perfumes. According to the organizers, a record number of about 1,600 visitors from 29 countries visited the event this year. SABIC was participating in the event for the first time, exhibiting its range of ethanolamines/ethxoylates and NDA products as part of its global promotional and customer outreach campaign in preparation for the upcoming launch of SAUDI KAYAN amines products. Representatives of about 80 companies visited the SABIC booth. SEPAWA members regularly exchange knowledge and experience on a wide range of subjects such as, new production processes, the development of performanceenhancing or differentiating ingredients, the use of industrial manufacturing procedures, the significance of lasting product innovations, and issues relating The SABIC team at their stand 14 SABIC November/December 2010 Overhead view of the show to sustainability and environment protection. SABIC’s Performance Chemicals SBU operates three Business Units: Base Products, Functional Polymers and Functional Chemicals. Ethanolamines and Ethoxylates are part of the Functional Chemicals product range and are used, amongst others, in household detergents and personal care products. “SABIC’s Performance Chemicals Business aims to diversify the SABIC product portfolio and accelerate the exploration of new chemical and polymer value chains to meet our customers’ needs,” says Rusmir Niksic, SABIC General Manager, Functional Chemicals. “The European market is one of the key areas for SABIC’s growth strategy in performance chemicals where the company aims to expand its networks in sales, marketing and distribution. SABIC intends to combine its knowledge of customer desired applications and processes, product quality, technology platforms, customer service excellence and security of feedstock supply to create value, facilitate growth and spur innovation for its European customers”. SABIC representatives at the company’s pavilion The event, which was inaugurated by Bahraini Minister of Industry and Commerce Dr. Hassan Abdullah Fakhro on October 18, was organized by the Saudi International Chemical Society, which is a branch of the American Chemical Society, in collaboration with the Chemical Society of Bahrain. The conference was attended by Prince Saud bin Khalid Al-Faisal, Executive Director, Operations, National Competitiveness Center of the Saudi Arabian General Investment Authority (SAGIA), Prince Dr. Turki bin Saud bin Mohammed Al-Saud, Vice President, King Abdulaziz City for Science and Technology (KACST), Omar Bazhair, Vice President, Engineering and Projects Management, Saudi Aramco, scientists, pioneers in chemistry and representatives from the petrochemical sector from around the world. At the end of the event, the organizing committee honored SABIC for sponsoring the event. Primarily, SABIC was represented at the exhibition by Technology and Innovation (T&I). Dr. Abdullah bin Saeed Al-Amri, Manager, External Network and Venture, T&I, briefed visiting dignitaries on the processes and operations of SABIC T&I, the role of laboratories and various new applications, as well as the technical support provided to customers. SABIC’s stand showcased a selection of technologies applied at SABIC’s T&I centers. The conference discussed several research and working papers. Dr. Abdullah Al-Rifai, Dr. Zia Choudhury and Yousef Al-Ghadeer, who are researchers at SABIC Technology Centers in Riyadh and Jubail, presented working papers on advanced materials, corrosion and membranes’ industrial applications. Discussions were held on analytical techniques, conventional and nonconventional oil field chemicals, and other important issues related to the oil and petrochemical sectors. November/December 2010 15 EXHIBITIONS & CONFERENCES Show of strength SABIC made a major impression at K 2010 based on its “four-pillar” principle. The profound changes at the company since K 2007 were quite evident as was its commitment to growth, customer focus, sustainability and innovation key initiatives and achievements in this critical aspect of the plastics industry (See Focus on Sustainability, page 20). Al-Mady repeated this message at the SABIC customer dinner, where he personally welcomed each of the 700 guests, creating a personal touch that set the tone for the night. In his opening address, he reminded everyone that SABIC was continuing to invest in plants, innovation, technology and people right across the globe, putting it in a position to help customers meet their business goals and challenges wherever they may be. (From left): Meesen, Al-Mady, Crew and Al-Mana at SABIC’s press conference Al-Mady underlined SABIC’s continued investment in both production and innovation An overview of the busy SABIC stand at K If you can rate the success of a fair by figures alone, SABIC had a very successful K 2010. Some 3,500 business meetings were held, which means some 8,000 people visited the stand for meetings or simple enquiries. Then there were live customer seminars in German and English, and participants visiting the stand after listening to the presentations. Add to that, the successful opening press conference, 91 media interviews before and during the show, and about 1,200 media clips generated. To say that the stand was “busy” would be an understatement. Every three years, the German town of Düsseldorf becomes the nerve center of the plastics industries, 16 SABIC November/December 2010 when materials suppliers and machine manufacturers from around the world converge to meet and do business. SABIC has been a regular at K for a number of years, but as one manager pointed out before this year’s show, although he met a distributor three years ago that didn’t know SABIC, that would be much more difficult this time around. For the 2010 edition, SABIC brought all its previous experience to bear as well as a rigorous plan based on the four pillars of growth, customer focus, sustainability and innovation. SABIC’s K activities and everything about the stand and its communications were based on the pillars, which were incorporated in a number of ways. The stand was constructed in the shape of a giant molecule, the root of SABIC’s work. The openness and numerous hospitality areas reflected customer focus; the demo areas and use of Lexan material in the building showcased the innovation; its size (the tallest stand at K) reflected growth; and the fact that some 90 percent of the stand was recyclable or re-usable was a brilliant example of sustainability. The concept was summed up as the “Culture of Innovation”. So at K, SABIC made a bold statement about where the company is, where it is going and how customer focus and innovation will enable it to get there. KEY MESSAGE The show started with SABIC holding the very first press conference of the K, attended by about 60 journalists from the leading global trade publications including Chemical Week, Platts, Asian Plastics News, Kunststoffe, Plastics News and Plastverabeiter. Mohamed Al-Mady, SABIC Vice Chairman and CEO, briefed the journalists about the progress SABIC has made over the past years and future plans. Khaled Al-Mana, Executive Vice President, Polymers, Charlie Crew, Executive Vice President, SABIC Innovative Plastics, and Huub Meesen, Vice President Europe, supported Al-Mady at the press conference. Al-Mady underlined SABIC’s continued investment in both production and innovation, detailing the new plants and investments in Performance Chemicals and innovation that are taking place globally. Charlie Crew spoke about SABIC’s strong relationships with global automotive companies. He cited the success of the Chery automotive project in China, where SABIC’s Noryl GTX*, Xenoy* and Stamax* resins enabled the car manufacturer to reduce weight, improve styling and enhance pedestrian safety on a model which was prominently displayed on the stand. Speaking after the conference he said, “We continue to expand the boundaries of materials excellence with next-generation products, processing expertise, and advanced application development capabilities to help customers differentiate, compete and grow.” Reflecting an overall market trend, many questions at the press conference focused on aspects of sustainability and environmental issues. Khaled Al-Mana listed SABIC’s NEW LEADS For SABIC at K, meeting customers, prospects and partners was the top priority. On the 1,200 m² stand, three reception desks were needed to manage the flow of people. The atmosphere was hectic at times. Managers and customers conversed at every level of the structure, from the ten meeting rooms and friendly ground-floor coffee bar to the more open first-floor area and sushi bar or the VIP lounge. Yet despite the bustle, the atmosphere was at all time both businesslike and welcoming. Visitors and passers-by could see the many SABIC applications displayed on the stand. In addition to a wide range of industrial and household appliances, the Chery sports car and Harley Davidson motorcycle featuring SABIC plastics were very popular with passers-by and the press. “Our Culture of Innovation focus drives SABIC’s strategy to be the preferred world leader in chemicals and plastics,” said Al-Mana. “We are proud to show how investments in our global capabilities and portfolio help us achieve mutual success with our customers.” SABIC managers from around the world attending the K show reported November/December 2010 17 EXHIBITIONS & CONFERENCES Staff delighted to see machines, processes The SABIC customer dinner at K was well attended, and was addressed by Al-Mady (right) extensive coverage in tier-one online media as well as the business press. SABIC’s key messages were well covered, and by the end of the show, the industry media had a good grasp of SABIC’s sustainability messaging platform. Al-Mady was the first industry executive featured in the K show’s inaugural footage. The media tour of the SABIC stand was also a major success. About 356 articles were generated during the show, including 54 interviews with SABIC business leaders and 10 press releases. SABIC was also part of a press conference announcing the creation of an innovative PET Nr. 44 30 28. Oktober 2010 DIE ZEIT S. 30 fabric with the Austrian manufacturer Starlinger, co-developed in Saudi Arabia. (See details on page 36). An ad campaign in 33 key global plastics publications and highly visible outdoor advertising in Dusseldorf city and at the fairground provided much visibility. SABIC worked with 21 machine manufacturers, such as Gruppo Colines, Dolci-Belloni, Billion and Hosokawa-Alpine, that ran live demos of their machines at the show, running SABIC material. Not only did their potential customers see SABIC’s material in a live production environment, they also get SABIC’s SCHWARZ cyan magenta yellow WIRTSCHAFT DIE ZEIT No 44 message through branded material on the relevant stands. “In a way, it extended our stand,” says PP Technical Marketing Manager Diederik Goyvaerts. “And what also happened frequently is that after talking to customers at our stand, we could send them to see the material in action at the manufacturer.” APPETIZER SEMINARS Living up to its slogan of ‘a culture of innovation’, SABIC has a growing wealth of research, experience, application development and concepts to share with the market. SABIC already has a comprehensive program of e-seminars that runs on the web, supporting its emphasis on customer focus and co-development. For the first time, however, SABIC experimented with running live customer seminars at K. Nr. 44 DIE ZEIT S. 31 WIRTSCHAFT The format was simple: a 20-minute presentation, followed by a 10-minute Q&A session. “The idea was to create an appetizer,” says IP Product Manager Ton Hermans. “People don’t have the time to sit for an hour at a fair like K.” The 18 seminars covered many themes. Those that generated the most interest included metal replacement and weight reduction, sustainability, health care and photovoltaics. Some 80 percent of visitors asked to receive more information following the seminars. The impact of SABIC’s K efforts and achievements will last for quite some time to come – across businesses, customers, partners, prospects and the media. Geert Drummen from Moscow summed up his impression of K with a grin: “It was excellent, exciting, exhausting but very rewarding!” SCHWARZ cyan magenta yellow 28. Oktober 2010 DIE ZEIT No 44 Die neuen Aufsteiger aus dem Osten Jubail SAUDIARABIEN ÄGYPTEN BASF Deutschland ZEIT-Grafik Sabic 4 (6) Saudi-Arabien Sinopec China SUDAN 44,9 41,0 3 (2) 5 (8) eer Dow Chemical 2 (3) USA ExxonMobil USA 15 026 Dubai Riad 49,8 1 (1) OMAN JEMEN Arabisches Meer SOMALIA 600 km 31,2 28,9 ZEIT-Grafik/Quelle: Chemical Week Sabic in Zahlen: Sabic-Chef Mohamed Al-Mady in westlicher (links) und saudischer Dienstkleidung (rechts), Chemieanlagen im saudischen Jubail Gewinn (2009): 2,4 Milliarden Dollar Börsenwert: 74,6 Milliarden Dollar Mitarbeiter: 33.000 Produktionsstätten: 213 Fotos: PR; Ali Al Mubarak/ArabianEye/ Agentur Focus; Reuters (v.l.n.r.) ZEIT-Grafik/Quelle: eigene Recherche Klammheimlich an die Weltspitze Images from Die Zeit, the highly respected German national daily newspaper, which ran an extensive feature on SABIC during the show 18 SABIC November/December 2010 JUNG v.MATT 31 IRAN IRAK Chemieunternehmen im Vergleich, Umsatz in Milliarden US-Dollar, Rang 2009 zu (2008) sM HIGH VISIBILITY In addition to actual meetings on the stand, SABIC pushed its messages in other ways. The media campaign was a big success with SABIC securing “We are proud to show how investments in our global capabilities and portfolio help us achieve mutual success with our customers” Rote very positive outcomes. “Before I got to K, I wasn’t very optimistic,” said Gabriele Bacchetta, Polymers Manager in Italy. “But the reactions I have been getting from people have changed that.” Most people reported very brisk schedules. Konrad Hellmann from Germany saw new business in polycarbonate bottle closures, coin deposit locks and heavy duty vehicles. “Driven by the short supply in engineering thermoplastics, customers to whom we never had access also approached us to speak with us about business,” he says. “We saw many new leads in health care fostered by cross-fertilization between the polymer and innovative plastics business units.” Cross-fertilization was also on the agenda for Geert Drummen, who oversees the vast CIS and Baltics market from Moscow. “In the CIS, market distances are huge and exhibitions and seminars are efficient ways to meet face to face with key people. We met with some 90 companies,” he says. “We made a few large deals at the stand and met with several prospects who will start ordering in the coming months. We then introduced our biggest client to our SABIC Innovative Plastics colleagues as there will certainly be some synergy in sales.” Sparkassen-Finanzgruppe W er hätte gedacht, dass es in einem Wüstenstaat ähnliche Probleme gibt wie in der Lagune von Venedig. Zu viel Sand auf der Baustelle kann eben auch von Übel sein, besonders wenn er Salzwasser ansaugt wie an der Golfküste Saudi-Arabiens. Was die Bau- nicht notwendigerweise das »größte« Unternehmen, sagt er betont bescheiden. »Wir wollen nicht Wachstum um des Wachstums willen, sondern, dass unsere Kunden die Produkte und den Service noch mehr schätzen.« Der Mann ist ebenso Manager wie Diplomat. Einerseits gibt er seinen Mitarbeitern stramme Ziele vor: Nachdem sich die Produktion im vergangenen Jahrzehnt mehr als verdop- There is more to trade fairs than sales and promotion. This year’s K provided the opportunity for employees to keep up with the latest trends in the industry. Although K is not really a production environment, seeing how SABIC material is used in extrusion plants was fascinating. Various groups from SABIC sites visited the fair. For Jo Soons, Business Coordinator HDPE Pipe, who was attending with people from Gelsenkirchen, the reason for the visit was simple. “Everyone from SABIC should come!” he says. “This is the business we are in.” Process Technology Specialist Nikolas Zwaneveld headed a visit from the Young Professionals in Bergen op Zoom. “We bring together people under 35 from just about every sector in SABIC,” he explains. His co-organizer Kiki Crombag, part of the polymer market intelligence team, headed a large group from Sittard. She was particularly interested in seeing how the competition was communicating at K. HR was also present at the stand. On a windy, rainy Sunday, a group of 15 people from Geleen and Genk braved the weather to board a coach and head for Dusseldorf. Hendrik Vrissen is an operator from the Genk plant. His primary reason for coming? “The machines,” he says. “I like to visit K for the manufacturers’ stands. I’m also involved in a federation and like to keep up with trends. There is always something new here.” One person who knows K well is Wim Gloerich, who used to be part of the sales team in Germany and attended eight fairs but is now retired and acts as a guide for the employees. “At the time,” he remembers, “it was mainly a German fair.” The changes he sees? “It’s much bigger now, and more international,” he says. “But deep down, it’s the same business.” The employees followed his explanations about extrusion and injection molding with interest. Das saudische Chemieunternehmen Sabic nutzt billiges Öl für seinen Angriff auf BASF und Co. VON JUTTA HOFFRITZ Nischenplayer Süd-Chemie arbeitet mit Sabic an der Erforschung neuer Katalysatoren – allerdings in den USA. Branchenführer BASF prüfte vor einigen Jahren eine Zusammenarbeit im Nahen Osten – um sie dann zu verwerfen. Bei Bayer stand das Thema offenbar nie zur Debatte. »Saudi-Arabien?«, fragte Werner Wenning jüngst bei seinem Abschied als Bayer-Chef. Die Bedingungen dort seien noch nicht reif. »Wenn wir irgendwo inves- mehrt auf Technologie und verlässt sich längst nicht mehr nur darauf, diese nur per Joint Venture in die Heimat zu locken. In den vergangenen Jahren hat Sabic bereits mehrere Übernahmen im Ausland realisiert. Besonders die Akquisition der Kunststofftochter des amerikanischen GE-Konzerns 2007 galt mit knapp zwölf Milliarden Dollar als extrem teuer. Allerdings markierte der Kauf auch November/December 2010 19 SUSTAINABILITY New solutions backed by validation process, scorecard SABIC scores a green-high at K with the announcement of expanded and innovative sustainability product solutions, and new validation process and scorecard SABIC unveiled major sustainability initiatives at K 2010, introducing SABIC Innovative Plastics’ expanded portfolio of post-consumer recycled (PCR) content materials and a rigorous validation process for its sustainable materials and applications. SABIC Innovative Plastics’ new process includes a Sustainable Product Scorecard, developed in partnership with independent environmental sustainability consulting firm GreenOrder. SABIC Polymers too announced new products that demonstrated its growing strength in sustainability. Sustainability was the most ‘visible’ subject at K, with many of the stands focusing on the topic with vivid communications and imagery. SABIC’s approach was more subtle. “Green” or environmental aspects were not used as banners on the stand; they were built right into it. A large part of the stand was built in Lexan* sheets, with up to 90 percent recyclable or re-usable. The two major exhibits – the Chery sports car and the Harley Davidson – were automotive, currently a major focus in the debate around sustainability. SABIC technology contributes to weight reduction, which in turn results in a reduction in energy production costs and ultimately lower fuel consumption. SABIC’s data-driven approach, reinforced by the portfolio and scorecard announcements, showed the rapid progress that SABIC has been making in achieving its sustainability goals since the launch of a new corporate Sustainability Council in late 2009. The expanded Sustainability Solutions Portfolio of PCR content materials now includes more than 25 grades spanning six resin families, enabling customers to design a wide variety of more sustainable products. 20 SABIC November/December 2010 McKay conducts a ‘live seminar’ on sustainability at the SABIC stand At the Hosokawa Alpine stand, SABIC ran its 5-layer solution for collation shrink film applications, which offer converters several advantages including film down-gaging and high efficiency The portfolio expansion includes new Cycoloy* PCR filled and unfilled flameretardant (FR) resins, the first in a family of new open-loop Noryl* Classico PCR resins, and three new grades of Lexan* EXL resin with increased recycle content. The expanded offering builds upon SABIC Innovative Plastics’ award-winning Valox iQ* and Xenoy iQ* resins and Lexan* EXL 8414 resin. (Green portfolio in a nutshell, page 24) SABIC SBUs participating in K used the event to launch their material solutions while the Polymers SBU highlighted materials such as linear lowdensity polyethylene and low density polyethylene (LL/LLDPE), PP Qrystal, and Vestolen A RELY, which help converters reduce material usage, lower energy consumption by up to 15 percent, and offer other benefits. SABIC’s overall message was that sustainability is not just a question of recycling, it’s also a question of creating products that enable manufacturers to reduce energy use, or create lighter and more sustainable products. This was also the key message at the company’s sustainability seminar for customers, which was repeated four times during the show. “First, you have to remember that we are using natural gas, and this is better than using coal or oil. Second, we are reviewing all our manufacturing steps and identifying areas of improvement” AL-MADY’S COMMENTS Mohamed Al-Mady,Vice Chairman and CEO, emphasized the approach at SABIC’s K 2010 press conference. “We are stressing that growth must be sustainable, and we must innovate over time. SABIC is stressing the sustainability piece of innovation and growth,” he said. The company’s Technology and Innovation centers will play a key role in producing new and advanced materials to address customer needs. In response to a question from the media about the company’s carbon footprint and manufacturing, AlMady explained: “First, you have to remember that we are using natural gas, and this is better than using coal or oil. Second, we are reviewing all our manufacturing steps and identifying areas for improvement, including recycling some waste streams and converting CO² into products. There are many things we have done that really make SABIC one of the most sustainable companies in the Middle East, at least, but we aspire really to continue on this path. Sustainability is best when linked to profitability, and we are pursuing sustainable growth through profitable, sustainable projects.” VALIDATION Products and applications in SABIC Innovative Plastics’ expanded Sustainability Solutions Portfolio have been strictly validated in two potential ways: either they meet one or more widely recognized thirdparty sustainability standards or their November/December 2010 21 SUSTAINABILITY standard-specific criteria. The results of the scorecard are used to develop environmental benefit claims that are subjected to a rigorous, independent review. These validated claims, summarized in an Environmental Product Data Sheet (EPDS), give customers access to the data they need to differentiate their products and showcase their sustainability initiatives. “We commend SABIC Innovative Plastics for its proactive efforts to provide new alternatives to traditional materials across the spectrum of sustainability,” said Truman Semans, principal at GreenOrder, an LRN Company. “The key to this initiative is the verification of environmental benefits using established standards and rigorous validation and testing processes. Our work in independently evaluating SABIC Innovative Plastics’ materials helps ensure that they fulfill their eco claims and deliver proven, measurable value to customers.” Bert Groothuis, a manager on SABIC’s global corporate sustainability team, and Robert McKay, Sustainability Leader for SABIC Innovative Plastics, led the seminars on the topic, and were close to all the buzz. Customers noticed and responded to SABIC’s sustainability efforts – in particular, the focus on providing sustainable products that are validated by robust data, enabling customers to use them with confidence. As Bert put it at one of the seminars, “If you’re talking about sustainability, you have to talk about life-cycle analysis.” This “show me the data” approach went down well. “I have visited all the big raw material suppliers, and all have sustainability as a theme on their booth,” said a customer during the show. “But none of them was providing tangible information like SABIC – you seem to be the only one who does this seriously.” “Sustainability was clearly a theme at the show, especially among material suppliers – nearly all highlighted sustainability,” said McKay. “We not only participated in this trend, we demonstrated our capabilities as a credible and trusted partner in sustainable innovation.” Bert agreed, and underlined SABIC’s opportunity to distinguish itself in comparison with the competition. “I like the way we presented our sustainability story -in a structured and data-driven way, which resonated well. Looking ahead, all of our businesses are focused on increasing our successes, building our portfolio and really going after the business value.” The SABIC stand was built primarily using Lexan* sheet, bulk of which is recyclable or reusable environmental benefits relative to incumbent technologies have been verified using the company’s new Sustainable Product Scorecard. SABIC is now working with other SBUs to introduce a similar validation process, making adjustments where necessary based on the standards and the needs of the industries that they serve. For a significant number of products in the portfolio, there are third-party standards defining sustainability features, such as halogen-free FR or PCR content. For a number of other solutions, such as automotive lightweight design or footprint reductions, there are no widely recognized industry and third-party standards defining sustainability. It is necessary to verify the environmental benefits of these solutions over incumbent alternatives using Life Cycle Assessment (LCA) methods for estimating the environmental footprint of products and processes. SABIC Innovative Plastics has incorporated these LCA methods into 22 SABIC November/December 2010 For a significant number of products in the portfolio, there are third-party standards defining sustainability features, such as halogen-free FR or PCR content its new Sustainable Product Scorecard to ensure that the verification process is done in a rigorous and credible way. The scorecard process has already verified the environmental benefits of seven sustainability solution families, with more in the pipeline. This portfolio validation process enables customers to confidently choose high-performance materials that advance their environmental and business goals. SABIC plans to further expand its list of verified materials and sustainability portfolio to further support customers’ environmental objectives. The Sustainable Product Scorecard measures, validates and communicates environmental benefits compared with conventional or alternative materials. The scorecard has two components: 1. Life Cycle Assessment: LCA and Life Cycle Inventory (LCI) methodologies, based on the ISO 14040 and ISO 14044 standards, are used to build the first component of the scorecard. Carbon and energy footprints of products or applications are estimated through the product’s life cycle. 2. Green Chemistry Screen (GCS): This tool assesses the chemical composition of the product, including known impurities, byproducts and catalysts, against well-established toxicological, regulatory and The Ferromatik stand at K demonstrated the energy saving advantages of using SABIC’s PP Qrystal while moulding thin walled packaging products for food applications November/December 2010 23 • Reduced CO2 emissions • Delivers performance of virgin PBT (“drop-in solution”) SUSTAINABILITY Green portfolio in a nutshell Sustainability Solutions Portfolio targets top environmental issues • Industrial • Telecom • Food contact applications Cradle-to-gate manufacturing data Verified environmental performance1 Valox iQ 195 resin vs. standard PBT Valox iQ 195 resin vs. Polyamide 62 ~34% less ~47% less ~70% less ~58% less Greenhouse Gas (GHG) emissions/Kg resin Fossil fuel energy consumption/Kg resin Keyb Keys Valox iQ resins have a lower environmental impact SABIC’s Sustainability Solutions Portfolio is comprised of materials that address today’s most important environmental initiatives: Post-consumer recycled content: SABIC has received high praise for its Valox iQ and Xenoy iQ resins, including the 2009 Responsible Care award from Cefic and the 2007 environmental award from the Society of Plastics Engineers (SPE). These materials, containing up to 60 percent post-consumer content derived from discarded PET bottles, consume less energy and yield less carbon dioxide (CO2 ) than traditional polybutylene terephthalate (PBT) or polyamide (PA) 6 throughout the entire manufacturing process – from cradle (discarded PET bottles) to gate (resin pellets). The recently launched Lexan EXL PCR resins for consumer electronics applications reduce energy and emissions by up to 60 percent compared to conventional Lexan EXL resins. Automotive weight-out: SABIC has led the industry for many years with lightweight materials that reduce fuel consumption and emissions while delivering high performance and improved design flexibility. Collectively, automotive body panels 24 SABIC November/December 2010 Valox iQ* 195 Resin vs. Polyamide 6 100 100 80 80 Percent Contribution (%) Specialty Film and Sheet business provides high-performance glazing and roofing materials for the building and construction industry that can reduce energy usage in heating and cooling. Thermoclear* Solar Control infrared (IR) multiwall sheet products, which combine highly insulating multiwall construction with a proprietary IR coating, have been shown to reduce indoor cooling and heating energy requirements by 7 to 25 percent compared with double-pane glass windows and skylights, depending on multiwall thicknesses between 16 mm and 25 mm. Percent Contribution (%) Valox iQ* 195 Resin vs. Standard PBT 60 40 20 0 Greenhouse gas emissions Non-renewable fossil energy demand Standard PBT 60 40 F C 20 0 Valox iQ* 195 resin Greenhouse gas emissions Polyamide 6 Non-renewable fossil energy demand Valox iQ* 195 resin A sample of the SABIC sustainability scorecard The lightweight body parts of the Hyundai QarmaQ produced from SABIC IP Xenoy iQ resin molded from Noryl GTX resin; Lexan polycarbonate (PC) glazing; Xenoy iQ resin in pedestrian protection systems; SABIC® Stamax® long glass-filled polypropylene (LGFPP) for front-end module assemblies; and Flexible Noryl resin for ultra-thin-wall wire coating may reduce the weight of a typical car by more than 24 kg. This average weight savings results in a carbon emissions reduction of approximately 20 to 45 percent during the entire life cycle of a car compared to incumbent technologies. For example, for a typical car, this weight reduction could lower CO2 emissions per kilometer traveled by approximately 2.4 g. Successful adaptation of these lightweight technologies to a European fleet of approximately 210 million vehicles could potentially avoid 9.7 million tons of CO2 emissions per year. Advanced flame retardance (FR): SABIC is continuing to expand its array of non-halogenated FR plastics to keep pace with evolving environmental regulations and voluntary eco labels that are important to customers. For example, the new halogen-free SABIC has received high praise for its Valox iQ and Xenoy iQ resins, including the 2009 Responsible Care award from Cefic FR Lexan PC resin series combines transparency and all the benefits of an FR PC with chemically halogen-free formulation. Energy efficiency: Energy efficiency is an important focus for SABIC Innovative Plastics. For example, its Specialty Film and Sheet business provides high-performance glazing and roofing materials for the building and construction industry that can reduce energy usage. Thermoclear* Solar Control infrared (IR) multiwall sheet products, which combine highly insulating multiwall construction with a proprietary IR coating, have been shown to reduce indoor cooling and heating energy requirements by 7 to 25 percent compared with doublepane glass windows and skylights, depending on multiwall thicknesses between 16 mm and 25 mm. SABIC’s sustainable product portfolio now includes the following new additions: SABIC is continuing to expand its array of non-halogenated FR plastics to keep pace with evolving environmental regulations Noryl Classico PCR resin: Expanding on a history of successful closed-loop recycle programs, the first grade in this open-loop family of modified polyphenylene ether (PPE) resins is Noryl PCR RN0401 resin, containing 20 percent recycled content and featuring a UL94 V0 rating at 2 mm and an estimated heat deflection temperature of up to 70C. It is an appropriate candidate for a variety of electronic housings, modems and power adaptors. Two additional grades of Noryl PCR Classico resin, with up to 40 percent PCR content, are also expected to be commercialized within the next six months. Cycoloy PCR resins: These polycarbonate/acrylonitrile- butadiene-styrene (PC/ABS) resins contain 30 to 50 percent openloop PCR polycarbonate from water bottles, CDs, and other sources and are appropriate for laptop and consumer electronics housings. Filled and unfilled FR grades are available, contributing to upto two Electronic Product Environmental Assessment Tool (EPEAT) points for manufacturers listing their products to that standard. For example, Cycoloy RCM 6123 resin offers 30 percent PCR content, a UL94 V0 rating at 1.2 mm, and high stiffness of 4.3 gigapascals (GPa) for thin-wall enclosures. Up to six additional grades will soon be available, offering a variety of combinations of stiffness, flame rating and viscosity. November/December 2010 25 SUSTAINABILITY SABIC helped GM’s Chevrolet Volt concept car electrify the auto industry with its light weight Noryl GTX resin body parts Lexan and Lexan EXL PCR resins: There are now four grades of non-FR Lexan EXL PC resin with PCR content ranging from 10 to 80 percent. Three new grades – Lexan EXL 8134, Lexan EXL 8454 and Lexan EXL 8483 resins – join Lexan EXL 8414 resin, which was introduced at NPE 2009. All are based on SABIC Innovative Plastics’ high-performance Lexan EXL technology, which offers superior impact, improved low temperature ductility, and enhanced processability compared to standard PC grades. The grades offer carbon footprint reductions, in terms of cradle-to-gate greenhouse gas emissions, ranging from 20 to 64 percent compared to traditional Lexan EXL 1414 resin and a lower carbon footprint than virgin, traditional PC and PC/ABS. Lexan EXL 8414 has been used in cell phones, most notably the MOTO™ W233 Renew. Additionally, there is one new grade of FR polycarbonate resin – Lexan R9453 resin – containing up to 30 percent PCR with a UL94 V0 rating at 1.1 mm. Lexan R9453 resin is flame retarded with non-brominated and non-chlorinated FR technology. LD/LLDPE films: SABIC unveiled a pioneering concept in low-density polyethylene and linear-low-density polyethylene (LD/LLDPE) films at K. This milestone innovation marks a new approach to leveraging SABIC’s worldclass polyolefin portfolio. Among numerous benefits, it produces smart 26 SABIC November/December 2010 resin combinations offering converters significant material and energy savings while optimizing manufacturing and packaging performance. The concept is designed to enhance product performance and expand the choice of raw materials to end markets such as compression packaging, hygienic packaging, lamination and shrink film. It supports film packaging applications that comprise up to five layers or more, allowing manufacturers to create unique property configurations LDPE Ultra Melt Strength foam that meet the specific needs of brand owners as well as the demands of the consumer. They are also capable of balancing specifications such as high-gloss or tear resistance, while optimizing packaging performance. At the same time, it opens up new application areas and unprecedented levels of sustainability performance, replacing traditional materials with light-weight packaging solutions. The multi-layer concept enables manufacturers to create more value, including significant cost and material savings; improved down gauging options; lower energy consumption; and higher processing speeds. This is because the resin combination for every item in production can be tailored to get the most out of each manufacturer’s extrusion equipment and capabilities. Using this customized approach, manufacturers can achieve down-gauging options that reduce thicknesses by up to 20%. The SABIC LDPE-materials used in this concept are produced with SABIC’s state-ofthe-art PE tubular technology - the more sustainable alternative to the traditional autoclave technology. The tubular technology reduces air emissions significantly while minimizing energy consumption and waste during the production process. and maintaining excellent mechanical properties. UMS range delivers notable manufacturing advantages: it is temperature-sensitive, allowing a wider operating window for machine temperatures. This combination of properties delivers considerable material and energy savings, supporting converters in their efforts to improve their cost and sustainability performance. The first two grades in the SABIC® LDPE UMS line – one designed for foam sheet applications, the second engineered for foam sealing applications – make the production of PE-foams more environmentally friendly. In addition, they are easier to recycle. SABIC® LDPE 2202 UMS is designed for foam sheet applications, and is capable of significantly minimizing the unwanted waves associated with corrugation. This results in smooth end-products with excellent insulating properties that are easier to install and offer improved thermal insulation. LDPE UMS: SABIC also launched its new foam line, SABIC® LDPE Ultra Melt Strength (UMS), at K 2010. The product incorporates high-performing LDPE materials that provide a high insulating capacity for building applications and an outstanding shock-absorbing capability for packaging applications. This pioneering line achieves new levels of cost efficiency, offering converters the opportunity to reduce foam density from between 5 and 10 percent, while improving thermal performance SABIC® LDPE 1905 UMS improves the sealing and mechanical behavior of the end-product, making it ideal for foam sealing applications. The highperforming UMS line is also produced using PE tubular technology. The SABIC® LDPE UMS portfolio is available worldwide. Additional UMS grades will be launched in the near future. SABIC continues to work with customers to implement customdesigned closed loop recycling projects where products are collected at end of life and disassembled. The resin is then recovered, and incorporated by the company back into the resin purchased by the customer to make a new version of the recycled product. Successful implementations include printer cartridges, end-of-lease business equipment, and recovery of customer’s manufacturing, or postindustrial waste. * Trademark of SABIC Innovative Plastics IP B.V. ® Trademark of SABIC LD-LLDPE multi-layer film November/December 2010 27 COVER STORY The challenge of sustaining growth referred to the size and stature of the regional industry with a total capital investment estimated to reach $50 billion by 2015. He said the industry was entering a new phase of growth and the influence and reach of GPCA has also been expanding. He noted the Gulf region’s emergence as “the world’s essential petrochemical production hub with its natural advantages of lower energy and feedstock costs and proximity to high-growth economies.” He cited the example of polyolefins, a product category in which the Gulf’s production capacity has increased from 7 percent in 2005 to 13 percent in just five years, and is slated to reach 15 percent by 2015. Industry leaders urge Gulf petrochemical companies at the annual GPCA forum to adopt a fresh mindset aimed at engineering innovation and value creation Al-Mady referred to the competitive partnerships that have emerged during the recent economic downturn, and said the outlook was quite positive compared to this time last year. “But there will be continuing challenges as we deal with energy and feedstock availability, and with the effects of climate change – especially those based on carbon dioxide emissions,” he said. migrating away from the traditional production centers in Europe and North America and toward low-cost regions such as the Middle East, in particular the Gulf region. The UAE minister pointed out that the Gulf’s share of global ethylene production has increased sharply from 5 percent over 10 years ago, and is expected to reach 20 percent by 2014. “The Gulf region has emerged as the world’s essential petrochemical production hub with its natural advantages of lower energy and feedstock costs and proximity to high-growth economies” Sheikha Lubna delivers the inaugural keynote address What are the mega trends and mega challenges of our times? Where does the chemical and petrochemical industry fit in, and how can it help meet those challenges? How can the Gulf and the Middle East region, which have already established itself as a leading hub of global petrochemical industry, sustain its strong position in the coming years – and grow further? Why are technology and innovation the most important and strategic drivers of growth and business now and in the coming years, and how can the Gulf and Middle East meet this challenge? Industry leaders from the region and other parts of the world raised and sought to answer these and other important questions at the 28 SABIC November/December 2010 Fifth Annual Forum of the Gulf Petrochemicals and Chemicals Association (GPCA), held in Dubai on December 8 and 9. “Driving value and growth through innovation,” the theme of this year’s forum, thus turned out to be an effective prompt for industry leaders to offer interesting and thought-provoking presentations while delving deep into the key challenges for the industry in the region in the coming years. By the time the delegates were ready to go home after some intellectually stimulating discussions, there would have been very little doubt in their minds about how the global chemical industry is addressing the mega trends and challenges, the important role of the chemical industry in advancing innovation and sustainability, and how the Gulf region should be moving forward to retain its competitive edge to sustain growth in the coming years. It was also clear that the GPCA Annual Forum had established a strong reputation as a platform that offered many things to many people and the unique interface between scientists, professionals, managers, businesses and service providers, and above all for senior executives from around the world to exchange ideas and opinions. REGION’S STRENGTH When Mohamed Al-Mady, SABIC Vice Chairman and CEO, welcomed the delegates from across the world and made his opening remarks, he Al-Mady opens the annual forum Al-Mady pointed out that the region’s companies were not just adding capacity, but are also making significant investments in innovation, research and application development. “We have also placed a strong emphasis on distributing innovation throughout the value chain, including products application, production process, product developments and in our working process and practices,” he said. Sheikha Lubna Al-Qasimi, Minister of Foreign Trade of the United Arab Emirates (UAE), who delivered the opening keynote address, echoed the message of the region’s status as “the future center of gravity for the global petrochemicals and chemicals industry.” The economic downturn may even have accelerated the eastward migration of production, and the longer-term trend continues to be one of global petrochemical supply The region’s share of global chemical production capacity is expected to touch 16 percent by 2015 and 20 percent by 2020. “Even within a tough economic environment where capital infusion has become increasingly challenging, the ability of GCC producers to fund their expansion projects has not been an issue,” she said. Al-Qasimi said the regional industry faced a major challenge in 2009-10 from protectionist actions by countries November/December 2010 29 COVER STORY potential impact of such measures on the development and health of the regional and global industry,” she said. “That said, we remain committed to free trade and expect all countries to abide by WTO rules.” DECADE OF TRANSFORMATION Delivering the second keynote address at the inaugural session, Khalid Al Al-Falih, President and Chief Executive Officer of Saudi Aramco, said it is time for the region to look beyond oil and gas production, refining, and primary petrochemicals in order to widen product diversity and downstream value addition. Underlining the importance of creating value parks and clusters, he said the Gulf region has the potential to be a ‘mega-cluster’ for chemicals. “Even as we compete, we should concurrently collaborate “Even within a tough economic environment where capital infusion has become increasingly challenging, the ability of GCC producers to fund their expansion projects has not been an issue” at the regional level, with greater integration and cooperation providing critical mass in terms of local markets for chemicals. Such a robust home market can in turn serve as a springboard to competing on the global stage, even while the GCC chemicals ‘mega-cluster’ spurs economic diversification and new opportunities within our societies,” he said. Al-Falih urged the regional industry to focus attention on three enabling areas to contribute more effectively to economic development and diversification: Research and Development, Human Resource Development and the cultivation of a dynamic environment for commercial success. He said the regional industry needs 10 years to achieve a transformation of the current business model so that it can serve as a true enabling industry for other sectors. Al-Falih suggested that the chemical industry must accept “four stretch targets” to achieve so that it can take its place alongside oil and gas as one Industry leaders tour the exhibition outside the conference hall with chief guest Sheikha Lubna such as China, India and the European Union to block imports and protect indigenous industries by imposing antidumping duties. Some of those cases in China and India have been closed, but “we remain concerned about the “We have also placed a strong emphasis on distributing innovation throughout the value chain including products application, production process, product developments” The panel of speakers on the first day included (from second left): Al-Mady, Al-Falih, Jourquin, Heitmann and Cornelis; on extreme left is moderator Eithne Treanor 30 SABIC November/December 2010 Al-Falih’s keynote address called for a new mindset in the region November/December 2010 31 COVER STORY The panel on the second day included (from left): Al-Sadoun, Weidman, Chu, Hong, Konov and Diercks of Gulf’s pillar industries. First, the region’s petrochemical and chemical industry should increase sales by a factor of five by 2020. Against the business-as-usual scenario of increasing annual sales from $50 billion to $80 billion over the coming decade, the industry should target $150 to $200 billion range, capitalizing on growth of existing businesses and creating new ones. Secondly, the industry should increase the chemicals-related workforce in the Gulf by a factor of ten in the next 10 years. Third, the Gulf sector must increase its R&D spending by a factor of 10, to roughly five percent of total sales. He noted that last year, from the entire Middle East, only SABIC ranked among the top global thousand corporate investors in R&D according to a study. The fourth target proposed by Al-Falih was related to the task of developing talent. He proposed the establishment of “an aggressive target of multiplying the number of R&D scientists and engineers at work in the sector by a factor of 50 over the coming two decades. Again, that is a stretch goal, but one I consider essential to the long-term health and competitiveness of the Gulf’s chemical industry,” he said, urging the adoption of a policy framework that will enable downstream expansion to be pursued as a key strategy. FOCUS ON INNOVATION R&D and Innovation remained the key theme of most of the subsequent speakers and the panel discussions. Christian Jourquin, CEO of Solvay S.A., emphasized that innovation is the tool with which the world can combat the big challenges of population growth, aging population, the state of extremely stretched natural resources and climate change. Asserting that the chemical industry is part of the solution, not part of the problems related to global warming, Jourquin noted that the industry enables two to three times more emission savings for each unit it generates. This is because of the innovative products and technologies that the chemical industry provides to other industries and consumers. Urging the industry to foster a new mindset that focuses on sustainable development and focuses on constant improvements in products, processes and systems, Jourquin stressed the need to develop innovation along full value chains to achieve integrated and sustainable solutions. These should translate into effective and efficient solutions in water management, smarter cities, sustainable factories and transportation, and so on. Science, innovation and partnerships offer the keys to sustainability, he said. KEY BENEFITS In a presentation titled “Innovation Pay-Off”, Axel Heitmann, Chairman of the Board of Management, Lanxess AG, elaborated on how the company had achieved lower costs, more efficient production and cleaner environment through process and product innovation, including use of renewable energy, optimization of feedstock and high-tech plastics, and reducing the output of unwanted products. Innovation needs to be aligned with the mega trends and challenges of the day, and address the needs of future mobility, water problem, food security and urbanization GPCA: new horizons GPCA has gone from strength to strength over the years, and so has the annual forum. Mohamed Al-Mady, Vice Chairman and CEO of SABIC and Chairman of GPCA, and Dr. Abdulwahab Al-Sadoun, Secretary General, are delighted with the progress that the association has achieved in recent years. The association’s membership has increased from a mere 62 in 2006 to 159 in 2010. The number of full members has gone up from 20 to 36 (the rest being associate members). The membership list comprises companies from 23 countries representing the regional and global producers of petrochemicals and chemicals, and their service providers, with GCC accounting for about 69 percent. The number of delegates to the annual forum has shot up from 450 in 2006 to 1,323 in 2010, with Middle East and North Africa accounting for more than 800. This year, the forum registered an increase of 22 percent in delegate numbers. The increasingly international flavor of the event has been distinct in recent years, in terms of attendees, speakers and the topics discussed. In his closing remarks at the forum this year, Al-Sadoun announced several key initiatives for 2011. Most importantly, the GPCA has instituted two annual awards for the region – the GPCA Plastics Innovation Award and the GPCA Supply Chain Excellence Award. The association will hold four mini-forums in 2011: the Plastics Summit in April, the Fertilizer Convention in September, the Supply Chain Conference and the Human Resource Forum. Supply Chain Award of Excellence More than 1,300 delegates attended the annual forum this year 32 SABIC November/December 2010 Al-Sadoun opened the forum’s sessions on the second day November/December 2010 33 COVER STORY Heitmann also stressed that the innovation needs to be aligned with the mega trends and challenges of the day, and address the needs of future mobility, water problem, food security and urbanization. “Innovations pay off, if targeted at specific needs of specific customers in specific markets,” he said, adding that they must also be a fundamental aspect of corporate strategy and fully understood by every key player in the company. Francois Cornelis, Vice Chariman of Total and President of Chemicals, explained Total’s approach to innovation, including key technologies for the future of exploration and production of oil, the metallocene revolution in polyolefins, the evolution from micro to nano technology, and said that Total Specialties are focused on material science. Referring to the disastrous image of plastics, he said the industry must address the problem by strengthening recycling initiatives. “Energy content in polyolefins is big and clean, and must be recovered.” The presentations were followed by a lively question and answer session, during which the Saudi Aramco CEO pointed out that the Gulf is one of the world’s must open regions in terms of welcoming and encouraging investments and hosting foreign expertise. GULF PERSPECTIVE Dr. Abdulwahab Al-Sadoun, Secretary General of GPCA, opened the second day’s proceedings with a presentation that focused on the regional perspective on innovation. Reporting the findings of a recent survey commissioned by GPCA, Al-Sadoun said the conclusion was that most Gulf companies have not yet created or implemented their innovation strategy, although over 80 percent count innovation among their top priorities. Capacity building is a serious concern for the region as most have identified human resources as the most important obstacle to innovation. While most companies think that their focus is product innovation, Al-Sadoun said that there was limited scope for the under the current circumstances, and therefore the focus is likely to fall on process innovation to improve productivity and reduce costs. Most CEOs in the Gulf are focused on introducing differentiated grades of existing products in response to market needs, he added. Al-Sadoun observed that properly addressing the concept of innovation is likely to strengthen the global relevance of Gulf chemical players in a sustainable way. He promised that this will be a key focus area for GPCA in 2011. NEW ORDER Dave Weidman, President and CEO, Celanese, spoke about the new chemical order in which new players in new geographic regions have become industry leaders with production increasingly migrating eastward. He said the future changes in the chemical industry will be driven by new players and emerging geographic growth, but enterprise value can be increased by strategies that drive geographic growth, innovation and productivity. Ki-Joon Hong, President and CEO, Hanwha Chemical Corporation, focused on the potential of the Middle East and Far East to work together for maximum value creation. Through a comparative analysis of resources and capabilities, he suggested that the regions have plenty to gain from such a strategy. As the finite resources of the Middle East such as oil and natural Responsible Care MOU extended GPCA and American Chemistry Council (ACC) have renewed and expanded the scope of their memorandum of understanding (MOU) signed last year to establish a Responsible Care program in the Gulf region. The association will work with ACC to identify additional areas of collaboration, and advocate specific policy outcomes in areas such as trade and international product stewardship and sustainability. “GPCA’s efforts over the past year have resulted in the admission of the association as a full member of the Responsible Care Leadership Group (RCLG). GPCA has developed a concrete plan of action to enable its members to adopt and implement Responsible Care programs. “GPCA is working to ensure that petrochemical and chemical 34 SABIC November/December 2010 Al-Mady hands over a memento to Stephen D. Pryor, Director, ACC and President, ExxonMobil Chemical Company (center), and Cal Dooley, President and CEO of ACC companies in the Gulf produce and use chemicals in ways that lead to reduced energy use, minimal greenhouse gas emissions, and protection and preservation of natural resources,” said Dr. Abdulwahab Al-Sadoun, GPCA Secretary General. Al-Mady poses a question to one of the speakers during panel discussions ; on his right is Maha Mulla Hussain, Chairman and Managing Director of Petrochemical Industries Company of Kuwait gas become less and less accessible, the regions should cooperate to tap natural resources, particularly solar energy, which is being aggressively pursued by Hanwha, Ki-Joon said. Dimitry Konov, President of Russia’s Sibur LLC, spoke about his country’s ambitious plans to build six clusters of world-scale ethylene capacities, and said Russia’s production would be competitive on export markets. Prof. Dr. Rainer Diercks, President, Petrochemical Division, BASF, stressed the importance of new branches of knowledge and the shift of emphasis from products to solutions. Titled “From science to innovation: chemistry shapes the future”, Diercks’ presentation noted that the world is increasingly dominated by discontinuities, such as the changing pattern of global GDP, the fluctuating oil proices, and changing currency exchange rates. Chemical industries “As the finite resources of the Middle East such as oil and natural gas become less and less accessible, the regions should cooperate to tap natural resources particularly solar energy” must rely on sustainability, strong international R&D and a multidisciplinary approach to tackle the mega challenges of the future such as a burgeoning population, urbanization and a sharp increase in the need for energy, he said. The only diversion from the core topic of innovation at the forum was the address by Victor L. Chu, Chairman, Far Eastern Investment Group, who offered insights on raising investment funds in China. Pointing out that the era of cheap capital is over, Chu noted the absence of RMB financing options in China, and said three new channels will soon be available to investors: an offshore RMB capital market being developed in Hong Kong, which will be easy to tap; the possibility of a listing on the Shanghai stock market which has launched a pilot scheme; and, private equity financing. November/December 2010 35 PRODUCT INNOVATION First PET tape fabric could lead to 30% material savings Noryl GTX* conductive resins offer fresh benefits to automobile OEMs SABIC recently worked with its development partner Starlinger, an Austrian mechanical engineering company that leads the market in machinery for polypropylene tapes and woven fabric, in launching the very first fabric made from polyethylene terephthalate (PET) SABIC Innovative Plastics has launched its latest high-tech thermoplastic offering – a new family of Noryl GTX* resins – to give global automotive OEMs and tiers a major design advantage This was announced at a Starlinger press conference which was also attended by SABIC. The fabric boasts a number of powerful properties such as high stiffness, temperature performance, resistance to creep and high gloss with options for transparency, translucency and opacity. Significantly, as the fabric is made of PET, it also offers excellent recyclability. Sultan Bin-Battal, Vice President, PET, PVC, PS and MidEast & Africa Business Unit, underlined these features, stressing that the high strength of the material could enable up to 30 percent savings in materials. This makes it a more sustainable solution for the packaging of supermarket goods, hot-filling applications, geotextiles and self-reinforced composites for the automotive and transport sectors. “This is the first time this has been done,” Bin-Battal said. “The benefits for users are very clear, but actually developing the material was quite complex. Together with Starlinger we have applied jointly for two patents for the technology.” When approached by SABIC staff scientist Dr Zahir Bashir about working together, it turned out that Starlinger had been looking at the same topic themselves. Development took two years. Although the product is still going through customer testing, there have already been requests from prospective customers. Birefringence pattern shown by transparent PET tape fabric, seen with polarized light, between crossed polars 36 SABIC November/December 2010 Development partners address a joint press conference in Dusseldorf, announcing the development of PET fabric Starlinger Managing Partner Angelika Huemer spoke enthusiastically about the cooperation between the two companies. “It worked very well,” she noted. “New development can take years, but our technical teams were totally focused on achieving the same goal.” The companies are currently examining other exciting ideas using the same technology. A transparent and a pigmented white bobbin used to make the fabric These new conductive blends of polyamide (PA) and modified polyphenylene ether (PPE) cut coefficient of thermal expansion (CTE) by 20 to 40 percent compared with previous grades for increased dimensional stability and improved gap and flush management. The new features give automotive designers greater freedom to create larger top-quality, high-precision body panels than previously feasible. They also integrate into existing processes, including higher-heat online painting systems. These high-performance materials underscore SABIC Innovative Plastics’ strategic focus on helping automotive customers create differentiated designs that also promote system cost reduction and sustainability through weight-out. “This is a breakthrough in automotive design that promises to significantly expand the use of thermoplastic body panels,” said V. Umamaheswaran, Director of Products and Marketing, SABIC Innovative Plastics, Automotive. “SABIC Innovative Plastics has given car designers the ability to leverage the multiple advantages of Noryl GTX resins in larger and more complex fenders and other body panels, with the assurance of outstanding aesthetics and performance. Now, even trucks and large SUVs can benefit from metal replacement with Noryl GTX resins, which deliver consistent dimensional stability for a highprecision result.” Quality & Aesthetics SABIC Innovative Plastics has utilized new technology to ensure a low CTE and enhanced conductivity at higher temperatures while maintaining excellent mechanical properties, including impact strength. The new family of Noryl GTX* resins will help create larger and more complex automotive body panels Noryl GTX 98 series of resins feature 20 percent less moisture uptake and post-heat shrinkage than previous grades, enabling large parts to maintain their tight tolerances even in bright sunlight and high humidity. Precise part alignment enhances overall quality and appearance. Another aesthetic benefit is the perception of robustness in a plastic part, resulting from a 50 percent improvement in stiffness over previous Noryl GTX grades. In online painting, Noryl GTX 98 resin series delivers a 10C improvement in heat tolerance, making them compatible for highertemperature online painting. Less fuel, emissions By increasing the potential size of body panels, Noryl GTX resins can make an even greater contribution to vehicle weight-out, leading to reduced fuel consumption and emissions. According to the company’s Sustainable Product Scorecard, verified by GreenOrder, a leading sustainability consulting firm, the use of the Noryl GTX 98 series of resins compared with steel in body panels can reduce the weight of a car by up to 3.2 kg (7 pounds) resulting in up to 40 percent less energy consumption and up to 42 percent less carbon dioxide (CO2) emissions per part over its whole lifecycle. To meet different CTE requirements (related to part length), SABIC Innovative Plastics will offer up to four different variations of the new resin technology. Currently, Noryl GTX 987 and 989 grades are available, with more planned in the near future. * Trademark of SABIC Innovative Plastics IP B.V. November/December 2010 37 SUCCESS STORY Chery’s A3CC sports coupe gains from SABIC’s unique resin combinations Plexx chooses Lexan* PC sheet for Norwegian train windows Chery Automobile is China’s top car manufacturer and exporter. When Chery launches its new A3CC sports coupe, SABIC Innovative Plastics will be proud of the advanced materials solutions that are built into the vehicle Plexx AS, a leading Norwegian plastics converter, has chosen SABIC Innovative Plastics’ new ultra-tough, flame-retardant (FR) Lexan* F6000 polycarbonate (PC) sheet to thermoform European passenger train window frames. The frames will be used in Norwegian State Railways train cabins The sleek A3CC, which combines highend style with practical performance, was a major attraction at the recently held K 2010. The car carries several parts made from SABIC Innovative Plastics’ materials: the first Noryl GTX* resin front fenders used by a Chinese automotive OEM; a fuel filler door, also molded from Noryl GTX resin; light weight front and rear energy absorbers made from Xenoy* resin; and an undertray, molded from Stamax® long glass-filled polypropylene (LGFPP) compound. “Our five-year collaboration with Chery on the A3CC was clearly a success and showcases the innovative nature of Chery and their design of a new vehicle with high-performance plastics,” said Gregory A. Adams, Vice President, Automotive, SABIC Innovative Plastics. “Our diverse and growing portfolio of resins enabled Chery’s designers to create this exciting new convertible with plastic materials used in applications ranging from Class A fenders to structural components, and supports the company’s goal of ultimately competing on a global scale.” DESIGN QUALITY Chery recognized the crucial role of SABIC Innovative Plastics’ materials in pursuing its goal to be a global automotive leader. The introduction of the A3CC caps months of media attention, with comments that this new sports car promises to change the quality of design in China. “We chose to collaborate with SABIC Innovative Plastics on the A3CC sports coupe because of the company’s respected global reputation and capabilities, further benefiting from their excellent level of co-development support 38 SABIC November/December 2010 on this project,” said Shen Haojie, Executive Director, Second Product Development Division, and A3CC Program Director at Chery. “Providing high-performance materials was just the beginning. The SABIC Innovative Plastics team understood our needs, and provided materials, design, and tooling expertise to help us achieve our goals.” SABIC Innovative Plastics collaborated with Chery on three key applications that offer the potential for expanded use within a vehicle and also across other product lines. Front fender: Chery is the first Chinese OEM to use conductive Noryl GTX resin for a mass-produced fender. Replacing steel body panels with Noryl GTX resin enabled Chery to cut fender weight by more than 50 percent compared with steel (1.37 kg against 2.80 kg) while delivering better lowspeed impact durability than steel. Noryl GTX resin can be online painted along with the metal Body-In-White (BIW), avoiding the need for secondary operations and ensuring a perfect color match. Further, this conductive resin does not require a primer step prior to painting. Fuel-filler door: This part is traditionally molded and painted by the component supplier, potentially causing color mismatches with the body. Molding this part from Noryl GTX resin enables it to be painted online along with the rest of the BIW. This streamlined approach avoids quality issues and enhances aesthetics. Energy absorbers and undertray: The A3CC’s front bumper will incorporate an energy absorber made with Xenoy resin and an undertray molded with Stamax LGFPP compound. These components form a globally compliant bumper system because they meet European Union (EU) 2003/102/ EC Phase II lower leg pedestrian protection requirements, Economic Community of Europe (ECE) and US Federal Motor Vehicle Safety Standards (FMVSS) impact test requirements for low speed vehicle damageability. The rear bumper system will also incorporate an energy absorber made with Xenoy resin, and meets ECE and FMVSS low-speed vehicle damageability requirements. Overall benefits from the materials include weight-out for energy efficiency, part consolidation, design flexibility and system cost reduction from online painting. * Trademark of SABIC Innovative Plastics IP B.V. ® Trademark of SABIC Chery Automobile Company’s new A3CC Sports Coupe featuring SABIC Innovative Plastics’ Noryl GTX*, Xenoy*, and Stamax® resins SABIC Innovative Plastics’ Lexan* F6000 PC sheet will be used for Plexx AS passenger train window frames This advanced, tailor-made PC material replaces sheet molded composite (SMC) for significantly improved performance and faster cycle times, while avoiding the multiple secondary operations required for SMC. SABIC Innovative Plastics is helping customers succeed in the highly competitive transportation sector with advanced solutions that provide high performance, system cost savings, and superior end-product differentiation against other thermoset materials. “We had two main goals in upgrading from SMC to Lexan F6000 sheet: cutting the cost of the window frames and developing a much improved product for market differentiation,” said Arild S. Johnson, Managing Director, Plexx AS. “With SABIC Innovative Plastics’ help, we achieved these goals and more. Compared to SMC, Lexan sheet is faster and easier to process, provides greater design flexibility and toughness, and keeps its attractive appearance even after heavy use. In short, the SABIC Innovative Plastics team gave us a customized, highend polycarbonate grade, enabling us to create a unique product that stands out in the marketplace and, most important, meet our customers’ needs.” Lexan F6000 sheet, which can be custom colored, delivers exceptional color and texture retention after thermoforming and provides durability for the demanding public rail environment. The material complies with railway fire protection requirements: UL94 V0 at 1.5 mm flame retardance according to ASTM E162, and low smoke (ASTM E662) and toxicity (BSS 7239 and SMP 800 C) performance. Key advantages Lexan F6000 sheet offers a number of important advantages over traditional SMC for window frames. First, it is significantly cost-effective, even though only the periphery of the sheet is used, the center portion is recycled. Second, by streamlining the production process, the material cuts cycle times by up to 80 percent against SMC. Molded-in color avoids the need for secondary operations such as painting and sanding; thermoforming does not require gluing or hand work; and the material does not need a curing step – all of which were required with SMC frames. “Our Lexan F6000 sheet is already widely used in the aircraft industry because it offers exceptional flameretardant performance, outstanding impact strength, and a very attractive appearance,” said Lennard Markestein, Global Marketing Director, Specialty Film & Sheet, SABIC Innovative Plastics. “These attributes, together with cost and cycle time advantages, make Lexan sheet an ideal replacement for labor-intensive SMC. Our collaboration with Plexx demonstrates how SABIC Innovative Plastics can help customers achieve a clear competitive advantage in existing market sectors by leveraging new material technologies.” Lexan F6000 sheet also offers sustainability advantages over SMC, including reduction of volatile organic compound (VOC) emissions associated with conventional painting and curing. Because Lexan F6000 sheet is approximately 30 percent lighter than traditional SMC, window frames for railway carriages made with the material can potentially contribute to fuel conservation. This opaque PC sheet is produced with a special, durable texture that avoids the appearance of abrasion and fingerprints, helping to maintain an attractive appearance under heavy use conditions. SABIC Innovative Plastics’ ColorXpress facility delivered an exact match to the custom red-orange tint that is the brand of Norwegian State Railways. The company also customized the flame retardance of the material to comply with fire/smoke/toxicity (FST) standards mandated in Norway. * Trademark of SABIC Innovative Plastics IP B.V. November/December 2010 39 SUCCESS STORY SABIC® STAMAX® LGFPP helps Hyundai win 2010 SPE Innovation Award Lexan* Thermoclear* protection for Euro 2012 stadium in Poland The lightweight, high-performance SABIC® STAMAX® long glass fiber polypropylene (LGFPP) resin helped Hyundai-Kia Motors win a coveted Society of Plastics Engineers (SPE) 2010 Innovation Award on November 9 Adding to the recent stadium success stories, SABIC Innovative Plastics said in November that its Lexan* Thermoclear* polycarbonate (PC) multiwall sheet portfolio has scored another winning goal – the new Ultra-Stiff Lexan Thermoclear sheet, with its ability to withstand high winds and heavy snow loads typical of the region, is being used to construct the 43,000- square meter, free-hanging roof of the UEFA’s Euro 2012™ Football Championship Stadium in Silesian (Śląski) Chorzów, Poland SABIC Innovative Plastics. “STAMAX resins are among the newest materials in our broad and growing portfolio. With their huge potential for the automotive industry, we have already announced plans to expand capacity at our Bay St. Louis facility in Mississippi. We’re confident that our focus on innovative solutions and close collaboration will enable our customers to create An illustration of the 2011 Hyundai Sonata door modules other award-winning made using SABIC Innovative Plastics’ SABIC® STAMAX® applications in the Long Glass Fiber Polypropylene resin future.” The Hyundai Sonata door module The lightweight, high-performance is just the latest of many applications SABIC® STAMAX® long glass fiber featuring SABIC Innovative Plastics polypropylene (LGFPP) resin helped materials that have received SPE Hyundai-Kia Motors win a coveted awards. This recognition attests to Society of Plastics Engineers (SPE) the strong trend in the automotive 2010 Innovation Award on November industry to expand the use of SABIC 9. The Chassis Hardware category Innovative Plastics’ solutions to award honored the 2011 Hyundai achieve key objectives of weight-out, Sonata’s plastic door module featuring cost-out and greater design freedom. an integrated window guide rail. This major application, which utilized STAMAX 30-percent glassreinforced resin to replace steel in all four door panels, cut total vehicle weight by approximately 4 lbs (2 kgs), enabled 21 components to be integrated into a single injectionmolded part, and cut overall system costs by streamlining five assembly processes into one. “We’re honored to have helped Hyundai win this prestigious award, which showcases the many benefits of utilizing our STAMAX resins to simplify both the design and the manufacture of door modules,” said Gregory A. Adams, Vice President, Automotive, 2011 Hyundai Sonata 40 SABIC November/December 2010 Ideal for Integration “Our work with SABIC Innovative Plastics on the Sonata door module resulted in an elegant, simplified design that fully integrates the window guide rail,” said Daniel Vivian, Director of Engineering Design, Hyundai – Kia Motors. “This was our first experience with STAMAX resin, and it surpassed our expectations by delivering the high performance of steel while improving overall quality and cutting weight and costs. Plastic door modules make an important contribution to the high quality, fuel efficiency and affordability of the new Sonata, and we look forward to future collaborations with SABIC Innovative Plastics.” SABIC® STAMAX® LGFPP grades support design of semi-structural automotive applications that combine light weight with functional integration, such as front-end modules, instrument panel carriers, tailgates and seating systems. Compared to short glass fiber PP, STAMAX resins deliver higher impact resistance and stiffness and improved dimensional stability for tight tolerances. * Trademark of SABIC Innovative Plastics IP B.V. ® Trademark of SABIC The 2012 UEFA championship is the largest football event in the world, after the World Cup, and will take place in Poland and the Ukraine from June 8 to July 1, 2012. “Sports stadiums are often signature buildings for a city or country, and architects strive to create unique new forms, including huge roofs with dramatic curves and sweeps of glazing,” said Lennard Markestein, Global Marketing Director, Specialty Film & Sheet, SABIC Innovative Plastics. “The sheer size of these roofs, their exposure to wind and weather, and the global trend toward increased loading requirements for large structures require specialized, lightweight glazing materials. Our new Ultra-Stiff Lexan Thermoclear sheet can meet the demands of the largest and most challenging designs and the harshest conditions to provide long-term protection and beauty.” An Industry Leading Product When it is completed at the end of 2010, the oval, free-hanging Śląski Stadium roof will utilize transparent Ultra-Stiff Lexan Thermoclear sheet panels, each 1,500 mm in width. In spite of its extremely large size, the roof is lightweight, providing greater design freedom (i.e., cold forming into many different shapes and configurations) and simplifying installation compared with glass. The installation of the roof is being done by Thermoserr Poland. “This new Lexan sheet far exceeded my expectations,” said Aldo Zamuner, A view of the stadium’s free-hanging roof General Manager, Thermoserr Poland. “It is easy to handle and install, and creates a beautiful effect. The SABIC Innovative Plastics team provided excellent hands-on technical support, expertise and assistance, and met our deadlines with ease. In my opinion, Lexan Thermoclear Ultra Stiff sheet is unmatched in the industry.” Lexan Ultra-Stiff Thermoclear sheet offers exceptional performance with capability to withstand wind and snow loading pressures of up to 2200 N/ m2, equivalent to wind speeds up to 200 km/h. This new sheet product delivers up to 250 times the impact resistance of glass to reduce the risk of breakage from wind, hail, and other extreme weather, as well as vandalism. The multiwall configuration of the product provides excellent thermal insulation. These critical properties ensure that spectators are sheltered from the weather, while teams on the field experience less wind resistance that could interfere with play. The SABIC Innovative Plastics material provides flame retardance that complies with the European fire standard EN 13501-1 for safety. It features an ultraviolet (UV)-resistant coating on both sides to protect spectators from solar radiation and also to prevent yellowing of the polycarbonate. Ultra-Stiff Lexan Thermoclear sheet can be custom-tinted to meet customer specifications. This material carries a 20-year limited written warranty against discoloration, loss of light transmission and loss of impact strength due to weathering. * Trademark of SABIC Innovative Plastics IP B.V. November/December 2010 41 PRODUCT PROFILE Valox* resins offer sustainable and high-heat solutions Three new grades provide advanced flame retardance and excellent performance for electrical and electronics applications aesthetics offer another advantage, enabling E&E manufacturers to provide unique color combinations to differentiate their products. WHAT’S NEW SABIC Innovative Plastics recently launched three new sustainable additions to its Valox* ENH resin series that deliver advanced flame retardance (FR) together with experienced scientific and technical team achieved this goal. The three new Valox ENH PBT resin grades, with different glass reinforcement levels, not only utilize non-brominated and non-chlorinated FR technology but also provide a better balance of high-performance properties than competitive non-brominated FR PBT resins. They deliver excellent elongation, chemical resistance and Valox resin’s flexibility lends itself to a host of properties that can be tailored to specific industry needs Valox* ENH resins are used to make electrical equipment including cooling fan The Valox* family of thermoplastic polyester resins are semi-crystalline materials based on polybutylene terephthalate (PBT) and/or polyethylene terephthalate (PET) polymers. Valox resin formulations include many performancematched grades designed to provide application-specific property profiles. Valox resins combine heat and chemical resistance, as well as outstanding electrical properties with exceptionally good processability and surface appearance. SABIC Innovative Plastics began producing and marketing Valox resins in 1974. More advanced Valox iQ* 42 SABIC November/December 2010 and Valox ENH* resins are created with PBT-based polymers derived from 60% post-consumer plastic waste, consuming less energy and yielding less carbon dioxide (CO2) in their manufacturing than traditional resins. Valox resin’s flexibility lends itself to a host of properties that can be tailored to specific industry needs. These include mechanical, thermal and electrical properties combined with resistance to a variety of chemicals including hydrocarbons, dilute acids and bases, detergents and most aqueous salt solutions. The product is available in a broad range of both filled and unfilled grades, with specified UL and other anti-flame agency compliance ratings. The family also includes health care grades that meet food contact and medical regulatory specifications. Various health care applications and food contact applications are made with these type of Valox grades. Valox resin offers excellent performance at high temperatures, with a Relative Temperature Index (RTI) of up to 284 °F (140 °C). Very good processability and high flow in thin sections offer excellent surface finish, making Valox an ideal candidate for a host of applications in electrical and electronics industries. Color and outstanding mechanical and electrical performance to the electrical and electronics (E/E) industry. These innovative materials help customers comply with global environmental regulations, including the European Union (EU) Waste Electrical and Electronic Equipment (WEEE) directive that is now also being applied in Korea and China. The expansion of the Valox ENH resin family is the result of the company’s focus on providing an everbroadening portfolio of validated, sustainable materials to customers. “Environmental regulations and guidelines regarding acceptable flame-retardant chemicals for the electrical and electronics industry are continuing to tighten,” said Jos Braat, Global Product Market Director, SABIC Innovative Plastics. “Our dynamic R&D program focused on sustainable solutions continues to yield technological breakthroughs. Our new Valox ENH grades are just the latest deliverables in a strategic effort to evolve our flame-retardant plastics portfolio to be in line with global regulations and voluntary eco-labels that are important to our customers’ growth.” SUPERIORITY Reducing halogen content in flameretardant polybutylene terephthalate (PBT) is a challenge because substituting a non-brominated, non-chlorinated FR chemistry usually reduces the mechanical performance. SABIC Innovative Plastics’ highly impact, and actually offer a very good electrical and flammability performance. Overall, they provide a better balance of properties than other non-brominated FR PBT resins. The new Valox ENH resin grades are: • Valox ENH 3500 PBT resin, unfilled • Valox ENH 4530 PBT resin, 15 percent glass fiber reinforced • Valox ENH 4560 PBT resin, 30 percent glass fiber reinforced The three new Valox ENH resins meet the UL94 V0 standard at 0.8 mm. With a comparative tracking index (CTI) of 500 volts for Valox ENH 4530 resin and a CTI of 600 volts for Valox ENH 3500 and Valox ENH 4560 resins, these grades far surpass the CTI performance of standard glass-filled brominated PBT, which is typically around 200 volts. These unfilled and glass-filled grades have potential for use in electric cooling fans, relays, connectors, switches and fuser applications in printers. SUSTAINABILITY DIMENSION To make applications even more sustainable, Valox ENH resin grades can be enhanced by combining them with other SABIC Innovative Plastics PBT technologies, particularly Valox iQ* resins. This iQ technology is referred to as “upcycled technology” because it incorporates high levels of post-consumer polyethylene terephthalate (PET) bottles into PBT resin through a proprietary chemical process. Upcycling not only diverts waste from landfills but also reduces carbon dioxide (CO2) emissions and energy usage when producing PBT resin. Valox iQ NH 4550 is made from upcycled post consumer PET and is currently in SABIC innovative Plastics’ product portfolio. This new product combines non-brominated flame retardancy with a very low carbon footprint PBT resin and is therefore unique in the market. The addition of the new materials increases the Valox ENH resin portfolio to five commercial grades applicable to many different E/E applications currently made of brominated FR PBT and/or PET. SABIC Innovative Plastics is also planning to launch PBT/PET alloys within the Valox ENH resin family soon. * Trademark of SABIC Innovative Plastics IP B.V. Valox* ENH resins are used in making connectors November/December 2010 43 CUSTOMER OUTREACH SABIC celebrates partnership with Asia’s glycol customers SABIC Asia Pacific recently celebrated the company’s partnership with its mono-ethylene glycol (MEG) customers in the region at a well-organized two-day event that sought to mix business focus with fun and games Some preferred golf while others had the option of exploring the city Adds Fahad Al-Swailem, SABIC Vice President for Glycols Business Unit: “The event was a great opportunity to strengthen our relationships. Celebration of Asia Partnerships is exactly what we’ve achieved. Through close interactions over these two days, we have built personal relationships with customers all over Asia.” The feedback from leading customers in the region has been very positive. Wu Kao Shan, Executive Vice President, Far Eastern New Century, said SABIC had done an excellent job of organizing the event, and he was all praise for the customer service and logistical arrangements related to flying in the invitees to Bali. “We hope SABIC continues to support its customers so that we grow together. Glycol customers pose with SABIC Asia Pacific team for a souvenir picture in Bali Forty key SABIC MEG customers from seven countries, including China, India, Hong Kong, Taiwan, Japan, Korea and Thailand, took time off to fly into the Indonesian resort island of Bali to attend the customer appreciation program. “Celebration of Asia Partnerships” was the theme of the October 2224 event. With the participation of customers including Sinopec, Far Eastern New Century, Itochu, Indorama, Huvis, Hengyi, Sheng Hong and Tong Kun from the seven countries, SABIC’s regional management took customer engagement to a whole new level and further consolidated long-term business relationships. “SABIC Sensorial Experience”, a team building challenge that 44 SABIC November/December 2010 “This event was truly a celebration of Asia partnerships. Our customers have been with us through good times and bad times and we wanted to show our appreciation” promoted bonding with customers over fun and games through the use of the five human senses of sight, sound, taste, smell and touch, and a gala dinner on October 23 were the high points of the celebration. SABIC customers were also treated to optional programs including city tours and golf. Asia absorbs a lion’s share of SABIC’s global MEG exports from Saudi Arabia. The single most important application of MEG in Asia is the manufacture of polyester, which goes into the fiber, film and PET (polyethylene terephthalate) bottle and packaging industries. SABIC is the top MEG producer in the world in terms of production capacity, and most of the Asian customers have been sourcing their glycol needs from SABIC for over 10 years. “This event was truly a celebration of Asia partnerships. Our customers have been with us through good times and bad times and we wanted to show our appreciation,” says Ahmed Alumar, SABIC Vice President for Asia Pacific. Alumar (fourth from right) and glycol customers have an informal dinner table conversation November/December 2010 45 CUSTOMER OUTREACH “Isn’t it amazing that we are really in the business of engaging the five senses of the human race – sight, hearing, taste, smell and touch” David Shin Cherng Ming, SVP of Far Eastern Textile Taiwan, with Al-Swailem I think SABIC is doing a great job in maintaining long term contact with customers.” Shin In Yool, Vice President for Polyester Business Planning, Huvis said: “I really enjoyed this highly energetic atmosphere tonight and the teambuilding was so brilliantly engaging! SABIC is one of the most Visit signals Indonesia’s importance SABIC recently signaled the importance of the Indonesian market for the company, with a visit of Ahmed Alumar, SABIC Vice President for Asia Pacific, to Jakarta. The visit included a customer dinner with SABIC’s longterm partner in the market, Asahimas Chemicals. Alumar also met with Saudi Ambassador to Indonesia Abdulrahman Mohammed Amen Alkhayyat and discussed SABIC’s priorities in the region and Indonesia. The ambassador hosted a dinner for the SABIC team and the company’s key customers from PT. Tekpak, PT. Panca Budi, PT. Indopoly, PT. Argha Karya, PT. Universal Carpet, PT. Royal Industries and The Indonesia Olefin, Aromatic and Plastic Industry Association as well as the Gulf trade and government officials. The SABIC delegation included Rudi Permadi and Hedie Kam, Business Leaders in Indonesia, and Lili Koh, Director for Corporate Communications Asia Pacific. The program also included an informal employee luncheon and business reviews that enabled the teams to discuss the opportunities and challenges in the Indonesian market. customers, some of whom had spent half a day travelling from their home countries to be at the SABIC event. Al-Swailem spoke about the overall directions of SABIC and our glycols business and operations worldwide. “We thank you for your continued long-term partnerships, and we want to achieve more successes with you, and see you grow as SABIC grows,” Alumar said. “Our teambuilding activity today is about enjoying the SABIC Sensorial Experience. As we are creating this program, we wanted to do something interactive and engaging. We thought of what we do every day in business and how the products we make are touching lives. Isn’t it amazing that we are really in the business of engaging the five senses of the human race – sight, hearing, taste, smell and touch” he said? Hosting the gala dinner, Al-Swailem praised the spirit of camaraderie among the teams. Noting that the teams had lots of reasons to celebrate the partnership, he described SABIC’s glycols business as one of the best business cooperation and success stories. SABIC is the world’s top producer of glycols with a total production of more than 6 million tons of Glycols worldwide (including joint venture producing affiliates). Glycols have an important position in SABIC’s global 2020 vision, he said. In February, the SINOPEC-SABIC Tianjin Petrochemicals Company (SSTPC) started production in China. SABIC owns the rights to market 100 percent of the glycols production at SSTPC. This local availability brings SABIC closer to its customers in Asia, offering benefits of trading in local currency and efficient local services. The recent start-up of SAUDI KAYAN has also helped increase SABIC’s glycol production capacity. Al-Swailem said SABIC is planning to open a new storage hub facility in Asia to further improve service delivery. Customer focus will remain a cornerstone of SABIC’s growth strategy, and the company is committed to achieving sustainability in its operations. Asserting that SABIC is committed to strengthening its reliable services to Asian customers, he noted that the company is now present in 38 locations in the Asia Pacific region and employs more than 2,000 staff. Alumar (fifth from left) and Ambassador Alkhayyat with SABIC team members and other guests The ambassador hosted a dinner for the SABIC delegation 46 SABIC November/December 2010 powerful producers in the world. Huvis has worked with SABIC for more than 25 years, and we are happy to be close to SABIC. We hope to build concrete partnerships and good relationships for the future.” Subodh Laroya, Assistant Vice President, Indo Rama India, said: “We have been working with SABIC since last 15-20years. Our partnership has gone very smoothly and we hope it will go further, building on our relationships. SABIC is a world leading company. It is the best and becoming the biggest – only because of their effort in building up strong relationship with their customers.” Describing the experience as memorable and fantastic, Rakesh Kumar K Goel, Head of Department, Alok Industries Ltd. said: “I got to meet so many people from China, India and Taiwan. My key takeaway for Fahad’s speech is that he cares for the customers – this is the best thing and a demonstration of clear commitment to customers. We are 100 percent with SABIC. SABIC is a good company to work with and we enjoy working with you.” Welcoming the participants to the event earlier, Alumar thanked the The team-building exercise turned out to be a winner for all participants November/December 2010 47 Behind the Scenes Reaching REACH SABIC recently submitted its first REACH dossiers, accomplishing a major regulatory milestone. The achievement involved five years of solid behindthe-scenes work by dedicated teams The REACH team (from left to right): Madeleine Dirix, Harrie Camps, Wil ten Berge (external consultant), Esther van der Zande, Doeke van der Schaaf (external consultant TNO) and Marcel Bosma SABIC teams – is a monumental task of documenting vast amounts of technical information, reports and user information into dossiers to be submitted to the authorities. After five years of gathering information, coordinating with colleagues, competitors and customers, SABIC has submitted 74 dossiers to the Helsinki-based European Chemicals Agency (ECHA) as part of the company’s commitment to implement REACH (Registration, Evaluation, Authorization and Restriction of Chemical substances). REACH is the European legislation governing chemicals, which became effective in June 2007. The dossiers were submitted to secure the license 48 SABIC November/December 2010 for Polymers, Chemicals, Fertilizers, Innovative Plastics and Performance Chemicals SBUs. However, nothing can be more misleading than to think that the submission of these dossiers marks the conclusion of SABIC’s REACH agenda. Such is the nature and impact of this legislation, SABIC’s REACH teams are certain that the European initiative will continue to have a major influence on the company’s business in the years to come. The objective of REACH is to improve the protection of health and the environment through the better and earlier identification of the intrinsic properties of chemical substances. Over the years, more than 100,000 chemical products have been made available on the market. The European Union authorities are anxious to fill any information gaps about them, creating a central information source concerning their properties and studies that were carried out. What this meant in the short term for the industry – and therefore the BROAD AND DEEP To do this, the teams had to take a broad look at the substances. Producers had access to different studies on, for example, their toxicity. To complete the dossiers, it was necessary to contact competitors for relevant information, read and review studies and reports and also dig deeper into the clients’ operations. How are they using the material? Who is exposed to it, and for what duration and under what conditions? Esther van der Zande is a senior expert within Product Safety who coordinated much of the technical work involved. To complete her work, she needed to quiz clients through the sales and marketing teams about the precise way they use SABIC products. The exercise proved useful for everyone involved, as SABIC gained very valuable insights into the way they work. “This was actually an opportunity for the sales and marketing people,” she says. SHARING AND LEADING The sheer amount of information and work involved led producers to create consortia to share the burden and costs. In some cases, such as propylene, SABIC led the process for other members of the industry. “This was an opportunity to position SABIC in a leadership role amongst a network of co-producers, suppliers and distributors,” explains Harrie Camps, Manager of Regulatory Affairs, Product Stewardship, in Sittard; The Netherlands “In the mid and long term, this will be useful.” Jaco Boelhouwer, Business Manager, C4s and Oxygenates, was one of the people coordinating with other companies. “One problem we found was that producers and legislators often referred to things in different ways,” he recalls. “We had long discussions about whether some products were best categorized as a substance or a transported intermediate, for example.” In another case, SABIC considered a process as a physical separation, whereas the legislation considered it to be a chemical transformation. “The legal wording can be complex; it’s not black or white,” he concludes. For the SBUs, the process was largely an exercise in inventorying. “Obviously, we know the products we sell,” says Boelhouwer. “But then there are the exceptions, for example products that might be produced only very occasionally in exceptional circumstances such as cracker turnarounds. They had to be included in the registration or they could not be sold when needed!” Houria Belabed is Regional Business Manager for OXO/LAO (Performance Chemicals), which rely on products from Saudi Arabia. For her, communication within SABIC also played a role. “It was important to explain the importance of REACH to our colleagues in KSA,” she says. “At the time, this was purely a European initiative, although it looks as though the USA and perhaps Asia are moving in that direction as well now.” Van der Zande was also struck by the range of contacts needed to implement REACH. “This was one of the learnings for me,” she adds. “In the last three years I had regular contact with manufacturing, procurement (both raw materials and feedstocks), marketing and sales colleagues. In the future REACH will also affect the processes and procedures within these departments.” November/December 2010 49 Behind the Scenes LOOKING FORWARD REACH has been having an important effect throughout the industry as distributors and users are also directly involved. Showing that SABIC was very active in pre-registering and registering its products sent a reassuring signal to the market. “Several SBUs were contacted by clients to ensure that the products they purchase were being registered,” notes Belabed. “It was important for them to know they could continue with the same supplier.” Security of supply is a big issue in several sectors, such as health care, and one that strengthens SABIC’s position in the market. The fact that SABIC registered its chemicals in Europe, does not provide a freeride for our global customer-base. “SABIC Camps (third from left) and van der Zande (second from left) celebrate a REACH milestone with TNO’s staff Doeke vander Schaaf (extreme left), Gerwin Schaafsma (third from right), Jeane Nicolas (second from right) and Monique Groenewold (far right) “Several SBUs were contacted by clients to ensure that the products they purchase were being registered” Belabed, Regional Business Manager, OXO/LAO, Performance Chemicals er look... ake a clos H! ...at REAC Caring e REACH endorses th reduce the SABIC fully to which aim objectives, on our chemicals footprint of r health. t and on ou environmen It’s time .sabic.com Visit www ore. tm to find ou r futures 20:01:28 19.12.2007 paig reach_cam reach_cam to take a closer paign_fina l_v3.indd to ta ke a look... close Visit ww w to find ou .sabic.com t more. reac h_ca mpa ign_fin al_v3. indd 4 k... 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It’s tim It’s t ...at REA ll make a ACH, we wi mon Through RE to our com ntribution positive co future. ndd 1 n_final_v3.i Boelhouwer, Business Manager, C4s and Oxygenates a closer e to take ot It’s time t registrations cannot be transferred to our customers, and therefore we need to support our customers in understanding REACH and other global regulations,” says Camps. Belabed also underlines the positive impact of REACH. “This initiative shows that the chemical industry is taking potentially dangerous products in hand in a responsible manner. It is also important from the point of view of sustainability.” At the end of the day, SABIC will have played a win-win role in ensuring that suppliers, distributors and users have a better understanding of the products they use, and the risks involved. By achieving greater awareness, they will also be better enabled to inform their own clients and users. Shari ng ou r futu res 2 LIFESTYLE Video games Bonding or bondage? At a time when video game enthusiasts are already drooling with anticipation over the great games expected in 2011, the role of gaming in the modern family is worth a study Have you been at a loss wondering how to bond with your adolescent or teenage daughter or son, or nephew or niece? Do you think that playing video games is only for children and teenagers? Do you have apprehensions that if you show any interest in enjoying video games, either watching or playing, you are encouraging a dilution of the younger generation’s respect for you? New age parents are discovering that playing video and computer games with their children are a great way of bonding with them. A recent media report in India said that video and computer games were helping parents rediscover 52 SABIC November/December 2010 ways of bonding with their new-age children in the country. In 2007, a survey in US – albeit conducted by a developer and publisher of computer and video games – found that millions of grandparents, in particular grandmothers, played computer games with their grandchildren. Ninety-five percent of the grandparents said the games provided an opportunity to “bond with, or better relate to” their grandchildren. However, another recent report from the Indian city of Kolkata said the schools across the city had issued circulars or are holding parents’ orientation programs on how to monitor children’s addiction to video games. Some of the most violent and undesirable video games available in the market are landing in the hands of kids, something that has made schools hit the panic button. According to a new study from Sony Online Entertainment, published in the November issue of Family Circle magazine, an increasing number of American parents are recognizing the benefits of their children playing videos games, such as improved hand-eye coordination, problem solving and typing skills. The survey suggests that video games are also teaching children to think strategically. The study also found that 87 percent of parents who participated in the survey are spending time playing video games with their children. However, an Associated Press-AOL Games poll of 2007 revealed that a significant percentage of parents still believe that video games are bad for young children, and never – or seldom – play with them. While there are no signs of a universal consensus on whether playing video and computer games is good or bad for young people in various age groups, there is little doubt that gaming is here to stay, and the business – and its customers – will continue to grow. Indeed the debate is no more about whether gaming is good or bad, but how much gaming is ideal – and perhaps even recommended, not only for young people but even parents and grandparents. Gaming has emerged as a major money spinner of our times. Video Game Sales Wiki (vgsales), an online resource that provides consolidated global information and analysis on the industry, says from $41.9 billion in 2007, the worldwide game industry sales are expected to grow 9.1 percent annually to $48.9 billion in 2011, $68 billion in 2012 and $91 billion by 2015. The industry has achieved dramatic growth over the past two decades – from $7 billion in 1994 to $25.4 billion in 2004. As of 2008, the worldwide PC-based A number of parents believe that playing video games together helps them bond with their children game market alone was worth $10.7 billion. With the proliferation of PCs, and the availability of free online games, players are spoilt for choice. COMPLAINTS & CONCERNS Parents and teachers in different parts of the world complain that video games are a major distraction for adolescents and teenagers. The common complaints are about addiction eating into their time, affecting studies, health and relationships. At a more serious level, there have been concerns about the influence of extreme violence and exposure to improper scenes and language that are totally inappropriate for underage children. In a 2009 article on her website, Dr. Gwen Dewar, founder and author of ParentingScience.com, who has studied anthropology, and evolutionary and comparative psychology, reviewed several studies that sought to assess the impact of video games on young minds. Her conclusion? “Maybe there’s no reason to panic. Kids have always engaged in games that simulate violence, and video games aren’t all bad. In fact, some games promote social responsibility. Others may help sharpen your child’s spatial skills. But there are good reasons to suspect that video game violence can There are no signs of a universal consensus on whether playing video and computer games is good or bad for young people Experts say that parents must keep a tab on what young children are exposed to in video games November/December 2010 53 LIFESTYLE The new generation of hand-held devices provide easy, all-time access to video games “When I consider the high-quality studies reviewed here, I’m persuaded that something is going on” contribute to behavior problems.” Citing studies and experiments, she says people do feel more hostile after playing violent video games, especially the ones that simulate real-life situations. There is also evidence that playing violent games can make people behave more aggressively immediately afterwards. “When I consider the high-quality studies reviewed here, I’m persuaded that something is going on...It also seems clear that many kids have a self-destructive video game ‘addiction’. Surveys suggest that an alarming number of kids are pathological gamers, playing games so obsessively that they neglect their social lives and school work. Finally, I am bothered by something that most researchers haven’t addressed— namely, the effect of certain video games on a child’s developing sense of morality. Some popular video games glamorize gangsters and criminals,” she notes. PARENTAL ADVICE Professor Mark Griffiths, Director of the International Gaming Research Unit at Nottingham Trent University, UK, who has been studying and writing about video games for a long time, recently rolled out 54 SABIC November/December 2010 some parental advice on video game worries. He says video game playing offers educational, health, therapeutic and psychomotor benefits (e.g., hand-eye coordination and increased reaction times). “So when it comes to videogames, what should parents do? To begin with parents should actually find out what video games their children are actually playing! All video games now feature the PEGI rating system (Pan European Game Information), which not only contains a specific age rating but also specific game content (such as whether the video game features sex, violence, fear, swearing, gambling, discrimination, etc.),” he writes. If parents find that their children are into inappropriate games, they should try and guide their children through deeper involvement: “(i) Help choose suitable games that are still fun for their children to play, (ii) talk about the content of the games so that children understand the difference between make-believe and reality, (iii) discourage solitary game playing for long periods, (iv) follow recommendations on the possible risks outlined by videogame manufacturers, and (v) ensure that children have plenty of other activities to pursue in their free time besides the playing of video games.” To answer the ‘how much is too much’ question, Griffiths has come up with about seven simple questions that will enable the parents to determine if their children are playing too much video game. The questions related to the frequency and duration of the activity, reasons of indulgence, symptoms of restlessness if there is no access to games, sacrifice of social and sports to opt for video games, the habitual skipping of homework to play and inability to control the urge to play. “If the answer is ‘yes’ to more than four of these questions, then your child may be playing too much and you need to foster other activities to replace the video game playing,” he says, adding: “Thankfully, very few children are genuinely addicted to video games, but as responsible parents it is our job to monitor their video game playing and there are now plenty of games that we can play along too.” The Indian media report which said that video games had become an enjoyable bonding route for parents and children, quotes games companies as saying that the gaming community is sensitive to the increasing demand for games parents can play with their children. “For example, Nintendo’s Wii games pertaining to physical conditioning and exercise abound in the market. Since they stress on good habits, parents are happy to buy them for the family,” says one of them. Facebook offers a very tangible example of the popularity of free online games. Reports say that Facebook Games now has over 200 million people playing video games on the site, with 40 percent of the user base taking part in social gaming. Apparently, the top 10 games on Facebook have more than 12 million users each. So next time you get offered a cow or some chicken on your Facebook page, or get invited to join Farmville, think of it as a new channel to bond – especially if it’s from your children or a young relative. The water fountain off the Red Sea coast of Jeddah is reputed to be the tallest of its kind in the world November/December 2010 55 Metals that strengthen industry Steel is a vital ingredient for businesses across the world, from manufacturers of kitchen appliances to building contractors. As the leading steel producer in the Middle East, SABIC’s metals business has played a vital role in the construction, development and industrialization of some of the world’s fastest growing economies. Sharing our futures
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