SABIC Academy
Transcription
SABIC Academy
SABIC November/December 2011 Issue 104 SABIC Academy Grooming leaders, nurturing talent CONTENTS 18 INNOVATION MY IDEA goes global 04 18 NEWS Round-up of news stories from SABIC operations around the world .................................... 30 Analysis confirms low environmental footprint of SABIC steel 20 INNOVATION After the successful completion of the pilot program in Europe, MY IDEA rolled out across SABIC globally to encourage grassroots innovation across the company .................................... General Supervisor: Mohamed H. Al-Mady Vice Chairman and CEO Editor-in-Chief: Samir A. Al-Abdrabbuh Vice President Corporate Communications Managing Editor: Justin Powell-Tuck Global Media Leader Corporate Communications Senior Editor: Vinod Menon Media, Corporate 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. Project Manager: Khaled Al-Masri Group Editor: K. Krishnakumar Creative Consultant: Frank Stebbing Senior Designer: Hussain Mohammed PO Box 301292, Riyadh 11372, Tel:+966 (1) 462 3632, Email: [email protected] ©2011 Alef Publishing & Media Reprinting in whole or in part is prohibited by law except with the prior written approval of the publisher. 02 SABIC November/December 2011 •GPCA Forum, Dubai, UAE •GPCA Talent Convention, Dubai, UAE •Third GPCA Supply Chain Conference, Abu Dhabi, UAE •China Petroleum and Chemical International Conference, Tianjin, China •Saudi Agriculture, Riyadh, Saudi Arabia •Aircraft Interiors Expo, Seattle, US ................................................................. 28 30 32 34 40 stim 2012 Countdown begins for the 10th edition of SABIC Technical and Innovation Meeting to be held in November 2012 ................................................................. SUSTAINABILITY A Life Cycle Analysis of SABIC’s steel products proves low environmental footprint compared with the processes used to make similar products ................................................................. LOGISTICS Adaptive Dynamic Sourcing (ADS) takes SABIC’s supply chain efficiency to a new level in Europe ................................................................. COVER STORY The new SABIC Academy is ready to take Learning and Development at SABIC to the next level, supporting HR and leadership needs of the business ................................................................. CORPORATE SOCIAL RESPONSIBILITY SABIC funds the new Autism Research Center in Riyadh, draws praise for support to Disabled Children’s Association and ADHD Support Society Saudi Basic Industries Corporation, P.O. Box 5101 Riyadh 11422, Saudi Arabia. Published by EXHIBITIONS & CONFERENCES 42 ................................................................. 46 48 ................................................................. SUCCESS STORY Flux Chair made from SABIC polypropylene is a seating hit; Lexan* solar shading panels offer multiple benefits at Westminster Green Campus BEHIND THE SCENES A global automation project aims to achieve long-term excellence in manufacturing ................................................................. LIFESTYLE 3D is the new rage thanks to a thriving show business and the unending quest for a constantly improving viewing experience ................................................................. FOREWORD The past few months have been eventful for SABIC. SABIC’s year-end review meeting, internal launch of branding, record earnings for the third quarter, visits of leaders from business and government, new projects, senior-level appointments for different regions and key announcements related to Innovation make up the News section, giving us a solid feel of SABIC’s global momentum. Reports about SABIC’s participation in major international business and industry events in China, US and the Gulf region reinforce that feel. Two years ago, we published the news of SABIC’s decision to build a new Learning and Development (L&D) Center at the corporate headquarters in Riyadh. The Cover Story in this issue is timed to coincide with the opening of the Center, now named SABIC Academy. It explains SABIC’s L&D vision in the context of the company’s Human Resource Development needs to support the corporate strategy and the company’s global vision 2020. The SABIC Academy will undoubtedly play a major role in the company’s journey from now on, providing new vistas of continuous learning and leadership development opportunities for SABIC people – regardless of which business they are working for, what they specialize in and where they are located. SABIC’s focus on Innovation and Sustainability continues to generate achievements that can make us proud. A lifecycle analysis conducted by the Metals SBU has proven that SABIC’s steel production boasts a significantly superior environmental footprint compared with competition. In the area of Innovation, the Market Your Idea is being rolled out globally after the successful pilot program in Europe while SABIC has also created a Corporate Incubator and a venture capital arm to invest in innovative technologies. Netherlands Logistics Award. SABIC has launched a project to assess the scope for improvements in process automation around the world. SABIC’s Manufacturing Competence Center based in Cartagena, Spain, is leading the initiative, which is aimed at ensuring that our facilities will continue to maintain the highest levels of excellence in the coming years. The project is featured in Behind the Scenes. The SABIC Corporate Social Responsibility program has expanded considerably over the years with the company supporting diverse community needs around the world as well as the countries and markets it serves. The CSR section highlights SABIC’s support for a new Autism Research Center to be established in Riyadh, a program to support the Disabled Children’s Society and the ADHD (Attention Deficit Hyperactivity Disorder) Support Society. Editor-in-Chief We bring you two very interesting Success Stories. In Europe, the new Flux Chair made from SABIC’s polypropylene has made a huge impression on the furniture market and has won a series of awards. At the City of Westminster College in Central London, new solar shading panels made from SABIC’s polycarbonate (PC) sheet is helping to reduce building energy requirements, and maintenance and lifespan costs. Yet another Success Story, presented as a Logistics story, sheds light on Adaptive Dynamic Sourcing (ADS), a hybrid supply chain management project in Europe, which recently won the 2011 November/December 2011 SABIC 03 SABIC NEWS Year-end meeting reviews strategy, bids farewell to Charlie Crew ABOVE Individuals and teams were honored at the year-end meeting for their excellent performance SABIC’s leaders and senior managers from around the world converged in Dubai on December 11 and 12 for the company’s yearend meeting to review performance during the year and strategies for the future. Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, inaugurated the meeting. Mohamed Al-Mady, SABIC Vice Chairman and CEO, delivered the performance report for 2011. The meeting was held in the presence of the SABIC Board of Directors, all the SABIC Executive Vice Presidents, as well as senior managers. At the gala dinner on the opening day of Below The event included several internal presentations 04 SABIC November/December 2011 the meeting, Charlie Crew, Innovative Plastics Executive Vice President, was given a warm farewell. Crew retired after more than 34 years of distinguished service. The second day of meetings began with an overview of innovation and the opportunities that are available in different markets and industries. Various presentations highlighted real and successful cases of SABIC’s operational excellence and provided some very interesting and practical insights on how SABIC is leading the way with new and more efficient ways of operating. The presentations at the meetings included “Building Customer Value”, “Excellence in Below Prince Saud greets Crew Crisis Management”, “SABIC Co-operation with KAUST”, “Examples of Best Practices in the Business”, “Sustainability Best Practices” and “Adaptive Dynamic Sourcing”. The meeting concluded with the Prince Saud and Al-Mady honoring individuals and teams who were cited for their excellent performance. SABIC NEWS SABIC to launch new branding on January 31 SABIC will launch and introduce a powerful new brand positioning with a new brand look, materials and new tagline. The new branding was presented to the SABIC leadership in Dubai on December 11 by Mohamed Al-Mady, SABIC Vice Chairman and CEO, and the Corporate Communications leadership team. A spectacular helium filled zeppelin airship soared across the meeting room, effectively communicating the new brand and displaying SABIC’s new look. Al-Mady took the lead by introducing the brand positioning and commenting on this new direction for the company. “This new promise is about driving, fueling and boosting the ambitions of all SABIC constituents. The growth relationship is symbiotic and the success of our customers, suppliers, employees and other stakeholders is also our success. Knowing this, it is up to us to change our behavior and engage them properly to understand their ambitions and success factors and ultimately help them reach their goals.” Following Al-Mady’s opening comments, the Corporate Communications leadership team, led by Samir Al-Abdrabbuh, Vice President Corporate Communications, and Kevin Howard, Global Branding Leader, took the stage to present the new branding in detail and explain all the changes and commitments that need to take place for it to come to life. The company’s new tagline was also unveiled. “We want people to recognize our promise,” said Al-Abdrabbuh. “The tagline achieves this by describing what matters most: the strength of our relationships, the impact that we have, and the science we work with. It is crucial for us to invest in this tagline through our daily behaviors and actions.” During the launch, Howard also invited several of SABIC’s EVPs onto the stage to discuss the new brand in detail and give their views on what living the brand actually means, especially in their parts of the SABIC business and corporate functions. Commenting on the new brand, Howard said: “Our brand promise is Powering Ambition. Powering Ambition of our stakeholders is not just a story to talk about. It is what SABIC has been doing for a long time and will continue doing now with even greater drive. The company’s legacy of above SABIC global leadership team pictured after the internal launch of the new brand Below left Al-Mady presenting the new brand to the leadership team Below right Al-Abdrabbuh presenting details of the new branding success already shows we have the strength and capability to make the new brand promise not only a reality, but what SABIC is known for in the hearts and minds of its customers and all other stakeholders. Its success on this journey will ultimately depend on the dedication and commitment of all SABIC employees towards living the brand through their actions and how they interact with customers.” November/December 2011 SABIC 05 SABIC NEWS SABIC earns record SR 8.2 billion profit in 3rd Quarter SABIC achieved a record net profit of SR 8.2 billion for the third quarter of 2011 which ended on September 30. Announcing the financial results at a press conference in Riyadh on October 17, Mohamed Al-Mady, SABIC Vice Chairman and CEO, emphasized that the company maintained its pace of growth based on the reliability of its performance and sound operations. Al-Mady attributed the record achievement to the efforts of SABIC employees and recently implemented programs that have transformed SABIC into an integrated global company. Al-Mady cited several other factors that contributed to the positive results, including increased production and sales, reduced cost of funding, the diversity of SABIC’s markets, and the company’s strong presence in global production hubs, especially in the markets of developing economies such as China, India and Saudi Arabia. In these markets, SABIC has maintained 06 SABIC November/December 2011 above Al-Mady addresses the press conference to announce Third Quarter results in Riyadh its competitive position and continued to succeed and grow. Al-Mady said that the diversity of SABIC products reduces market risks considerably. SABIC produces steel, fertilizers, innovative and advanced engineering thermoplastics, polymers, and addedvalue performance chemicals. SABIC also benefits from a stable economic situation in Saudi Arabia. SABIC’s growth plans and projects are moving forward according to the company’s strategy thanks to these and other factors. Al-Mady said SABIC continues to grow and invest. It has new projects in place for the period of 20122015. With regards to prospects for growth, Al-Mady pointed out that SABIC continues to expand its performance chemicals production line to manufacture a range of specialty chemicals that will drive the growth of downstream markets in Saudi Arabia and abroad. He noted that the company has reached strategic agreements with several partners. This includes SABIC’s agreement with Sinopec for the production of 260K tons of polycarbonate, as well as agreements with Mitsubishi Rayon, Montefibre, ExxonMobil, Lurgi and Asahi to produce chemicals such as methacrylates, polymethyl methacrylates, carbon fiber, elastomers and sodium cyanide. “SABIC’s business is based on the reliability of high capacity operations that maintain operational safety. The company has a strong commitment to being reliable in all its operations. The challenges of the marketplace, the existing global economic volatility and operational challenges are things that SABIC takes into account and deals with accordingly,” Al-Mady said. Al-Mady pointed out that the positive results for the third quarter of 2011 are a natural result of the continued growth experienced over the previous two quarters. The company has continued to step up its production capacities in its different businesses. The SAUDI KAYAN petrochemical complex in Jubail Industrial City started its commercial operations in early October. Its financial results will be included within the company’s consolidated results in the last quarter of 2011. SABIC has continued to improve its operations in order to fulfil its commitment to sustainability and its efforts to strengthen environmental preservation. It has also made great strides in the repositioning of its global brand and on the brand’s activation project, and has also continued to invest in programs that support research, technology, innovation and the development of human resources. Al-Mady said these factors also helped SABIC recently to earn the Stevie Award for the Chemical Company of the Year in 2011. Chinese chemical industry leader, Tianjin delegation visit SABIC Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Mohamed Al-Mady, SABIC Vice Chairman and CEO, received a Chinese delegation led by Li Yongwu, Chairman of China Petroleum and Chemical Industry Federation, at the company headquarters on October 29. Li Yongwu also visited the SABIC Technology Center at the Riyadh Industrial City after a lunch reception held in his honor at the headquarters. Commenting on the visit, Al-Mady said: “We are indeed happy to receive such dignitaries from China’s everexpanding chemical industry. They reflect our rapidly growing presence in China and our ambition to be the preferred petrochemical supplier in this important country. We have embarked on a series of projects as part of our growth plans in China, including manufacturing and technology & innovation operations. Our focus remains on helping our customers create products that would improve the quality of life around the world.” Li Yongwu is also the Chairman of the Presidium of China Federation of Industrial Economics. He has previously served as Minister of State Administration of Petroleum and Chemical Industry, and Deputy Minister of the Chemical Industry. Hongxing, President of the SINOPEC SABIC Tianjin Petrochemical Company. The Chinese dignitaries watched a corporate film and a presentation, and attended a lunch reception hosted in their honor. Welcoming the Tianjin delegation, Al-Mady above Li Yongwu in discussions with Prince Saud and Al-Mady below He Lifeng and the Tianjin delegation with Al-Mady and other senior SABIC executives emphasized SABIC’s strong commitment to the Chinese market and the company’s growing business presence in China. “SABIC has embarked on a series of growth initiatives in China, including a new partnership with SINOPEC to build a polycarbonate plant in Tianjin and a new research center in Shanghai,” he noted. He Lifeng, was the Party Secretary of Fuzhou city and Xiamen before he was promoted to his current post. He was also the Xiamen City Director of Treasury, and later Vice Mayor. Prior to these two visits, SABIC had received another delegation headed by by Zhang Gaoli, Member of the Political Bureau, Central Committee, Communist Party of China (CPC), and Secretary of the CPC Tianjin Municipality. Senior Tianjin official Al-Mady also received He Lifeng, Vice Party Secretary of Tianjin City Government, at the SABIC headquarters on November 4. The visit of the Tianjin official underlined SABIC’s growing business profile in China. The Chinese delegation included Xu November/December 2011 SABIC 07 SABIC NEWS Al-Mady holds talks with UK Minister of Trade & Investment Mohamed Al-Mady, SABIC Vice Chairman and CEO, and other high ranking company officials, received Lord Green of Hurstpierpoint, UK Minister of State for Trade & Investment, and formerly the Global Group Chairman of HSBC Holdings, at the SABIC headquarters on September 21. The minister was accompanied by Edward Oakden, Managing Director of UK Trade & Investment, and Chris Innes-Hopkins, Director UK Trade & Investment at the British Embassy in Riyadh. Al-Mady and Lord Green discussed the prospects of exploring new opportunities for SABIC and the UK companies, largely in light of the fact that SABIC has considerably boosted its presence in Britain after its acquisition of Huntsman Petrochemicals in 2006. Al-Mady noted that the visit came at a time when SABIC is optimizing its international above Al-Mady receives Lord Green at SABIC 08 SABIC November/December 2011 operations, pursuing new ventures for investments, and focusing on technology and innovation efforts. The creation of SABIC UK Petrochemicals was part of this global strategy, with the company now boasting a new state-ofthe-art 400,000 metric tons/ year LDPE plastics production plant in Wilton, Teesside – the largest of its kind in the world. Operations also comprise a cracker unit and aromatics compounding complex. “We work diligently to improve the business environment through simplifying the planning and development of new infrastructure processes and by maintaining a stable and clear organization. We believe that opportunities will be available in the UK, a world leader in manufacturing, technology, research and development in addition to bio-sciences and creative industries”. right Prince Saud with Kwon Do-youp Prince Saud receives South Korean Minister Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Mohamed Al-Mady, SABIC Vice Chairman and CEO, received South Korea’s Minister of Land, Transport and Maritime affairs Kwon Do-youp at the SABIC headquarters in Riyadh on September 17. The visiting minister was accompanied by a high-level South Korean delegation consisting of businessmen, trade and industry officials, and South Korean Ambassador to the Kingdom of Saudi Arabia Kim Jong-yong. The SABIC team attending the talks included several executive vice presidents. Prince Saud praised the strong relations between Saudi Arabia and South Korea, especially in the economic field. The volume of bilateral trade has seen a remarkable increase, mainly in oil and petrochemical products, reaching US$ 33 billion in 2010. There are areas for more cooperation between the two countries, especially in construction and medium and light industries, he said. The two sides discussed several important issues, including ways to further boost the close relationship between SABIC and its customers in South Korea. They also exchanged views on the prospects for joint ventures and investments in petrochemicals and the construction industry. SABIC NEWS SABIC named ‘Company of the Year – Chemicals’ SABIC has been named ‘Company of the Year – Chemicals’ by the People’s Choice Stevie Awards – a unique award that is judged each year by leading figures in business worldwide. Amidst a gathering of global dignitaries, Mohamed Al-Mady, SABIC CEO and Vice Chairman, received the award at the Eighth Annual International Business Awards function held in Abu Dhabi on October 11 under the patronage of Sheikha Lubna Al-Qassimi, UAE Minister of Foreign Trade. The SABIC delegation to the function included Abdulaziz Al-Habib, General Manager, SABIC Dubai, and Mohammed Al-Motawa, SABIC General Manager, Events and Protocol. Ebrahim Al Saad Al Ebrahim, Saudi Ambassador to the UAE, also attended the event. SABIC won the award after a detailed, twophased voting and evaluation process of nominees from July 28 to September 9, 2011. In the preliminary stage, 35,000 top-ranking business professionals from around the world cast their votes, after which specialized committees made a final choice based on the voting scores. Commenting on the award, Al-Mady said: “SABIC has won this honor due to its leading position in the global petrochemical industry. It is a result of SABIC’s global team work, and is a reflection of our remarkable business achievements. We are pursuing the right policies in serving our customers, and are eager to continue leading the industry forward.” Al-Mady added: “SABIC is working according to clear plans and specific strategies for growth and expansion in several areas, including customer service, access to new markets, and value-added products. We continue to invest in technology, offering innovative business solutions. We are focusing on qualitative development of human resources, while maintaining our highest performance levels and operational quality, with a strong emphasis on Sustainability and environment care.” The Washington- based Stevie Awards Committee screens the companies in various metrics including Growth, Innovation and Integrity. The awards were created in 2002 to honor and generate public recognition of the efforts, accomplishments, and positive contributions of companies and business people worldwide. The awards, which are governed by a board of top executives, association leaders, business press, and business academics, are conferred in four programs: American Business Awards, International Business Awards, Stevie Awards for Women in Business and Stevie Awards for Sales & Customer Service. Left Mohamed Al-Mady, SABIC CEO and Vice Chairman, fourth from left, after receiving the Best Company award November/December 2011 SABIC 09 SABIC NEWS SABIC announces new project in China MOU signed to build engineering thermoplastics compound plant in Chongqing SABIC’s Innovative Plastics business, Chongqing Xiyong Micro-electronics Industrial Park, and the Chongqing Economic and Informatization Commission have announced a memorandum of understanding under which SABIC would establish an engineering thermoplastics compounding plant in Chongqing, China. The announcement was made in Chongqing on October 27. The move supports the Chinese government’s 12th Five-Year Plan to expand into the country’s western region and reinforces SABIC’s commitment to build on its long heritage of serving this important marketplace with innovative and consistently high-quality materials solutions. Chongqing has already established itself as an important industrial hub for global computer, consumer electronics and automotive manufacturers – critical industry segments that SABIC has long served with local materials technology and manufacturing, application development expertise, and design assistance. This is SABIC’s third Chinese engineering thermoplastics investment this year. Earlier announcements include SABIC’s memorandum of understanding with Sinopec to collaborate on polycarbonate (PC) production in China. A joint investment between both companies would fund a new PC product plant with an annual capacity of 260 kilometric tons. The second announcement was investments in new production lines for SABIC’s Lexan PC resins and films in both Shanghai and Nansha in 2012. This comes on the heels of a similar Lexan compounding expansion in Nansha late last year. “We are in China, for China. In the more than 30 years we’ve operated in this region, we’ve cultivated long-term customer relationships that have helped make SABIC the first supplier many of the world’s leading OEMs call when designing their customers’ innovations,” said Charlie Crew, Executive Vice President, Innovative Plastics business. “Our product portfolio includes thousands of resins and compounds with a wide range of performance properties to meet diverse industry and customer requirements. And we are constantly SAUDI KAYAN begins commercial operations SAUDI KAYAN, SABIC’s Jubail-based affiliate, began commercial operations on October 1. SAUDI KAYAN’s commercial start-up signficantly boosts SABIC’s total production capacity. More importantly, SAUDI KAYAN also marks a new beginning by launching production of specialty chemicals for the first time in Saudi Arabia. SAUDI KAYAN is the largest integrated petrochemical complex in the Middle East, consisting of a total of 15 plants including world-scale olefin, polymer and glycol units. The complex’s 10 SABIC November/December 2011 product portfolio consists of ethylene, amines, phenolics, ethylene oxide, ethylene glycol and polycarbonates. SAUDI KAYAN management and staff celebrated the landmark occasion at the complex in Jubail Industrial City. Mutlaq Al-Morished, innovating to create new solutions to meet our customers’ evolving application needs.” Huang Qifan, Chongqing Mayor, said: “This compounding plant in Chongqing Xiyong Micro-electronics Industrial Park is SABIC’s third investment in China in 2011 to further enhance the electronics industry. It marks not only the settlement of another Fortune 500 company in Chongqing, but also the strong support from a worldclass engineering thermoplastics provider to the industrial chain of Chongqing’s laptop industry. Here, on behalf of the Municipal Committee, the Government, and 23 million Chongqing citizens, I’d like to extend my most sincere congratulations and warmest welcome to SABIC for its successful establishment of the Chongqing manufacturing site.” The new compounding plant, which is expected to be online in 2013, will produce several of SABIC’s world-class PC, PC blends and other high-quality engineering thermoplastics to provide easier access for southwest China customers. The site will have compounding lines, color development capabilities, and advanced equipment enabling SABIC to work with their customers and partners to create new applications for engineering plastics. Today, SABIC in Asia has 41 offices, nine manufacturing sites and five Technology & Innovation Centers across 12 key Asian countries servicing a portfolio of customers across diverse industries. SABIC’s Executive Vice President Corporate Finance, who is also the Chairman of the Board of SAUDI KAYAN, thanked the company’s Board, SABIC, the Ministry of Petroleum, the Royal Commission for Jubail and Yanbu, Saudi Aramco and the financial institutions that had supported the large-scale project. Recalling the massive logistics involved in building the complex, he said at one time more than 50,000 people were working on the site. “This kind of project, the largest ever chemical plant we built, could not have been achieved without the help and efforts of all concerned,” he said. Al-Morished assured customers of SAUDI KAYAN’s commitment to quality and efficiency in delivery, and assured shareholders that their investments are protected and the returns will be reasonable as promised in the company’s IPO. SABIC NEWS left The groundbreaking ceremony at the SOCC site SOCC breaks ground for tri-ethyl aluminum plant The Saudi Organometalic Chemicals Company (SOCC) held a groundbreaking ceremony for the construction of its new tri-ethyl aluminum plant in Jubail on September 18. SOCC is a joint venture equally owned by SABIC affiliate SPECIALTY CHEM (Saudi Specialty Chemical Company) and Albemarle Netherlands B.V. (a wholly owned subsidiary of Albemarle Corporation). The mechanical phase of the new project, which is the first of its kind in Saudi Arabia, is scheduled PP compounding facility opens in Bay St. Louis SABIC’s Innovative Plastics business recently celebrated a major milestone with the official opening of its specialty polypropylene (PP) compounding operation at its Bay St. Louis, Mississippi manufacturing site. The new compounding operation will supply SABIC® PP compounds and SABIC STAMAX* long glass fiber-filled PP (LGFPP) composites for a wide range of automotive applications. SABIC’s new PP operation answers fastaccelerating demand from automotive OEMs and tiers for local supply of globally-consistent PP materials in North America, supporting production of both regional and global vehicle platforms. This is the second time in 17 months that SABIC has opened a PP compounding facility, having celebrated the start-up of its Genk, Belgium plant in June 2010. SABIC’s PP investments underscore the company’s commitment to provide highperformance materials that can help automotive OEMs pursue weight reduction opportunities and achieve energyefficient improvements in vehicles. “In today’s fast-paced automotive industry, we continually strive to help for completion in the third quarter of 2012. The SOCC facility will manufacture 6,000 metric tons per year of tri-ethyl aluminum, which is primarily used as co-catalyst in the Ziegler our customers respond to new challenges and demands,” said Gregory A. Adams, Vice President, Innovative Plastics, Automotive. “One of those challenges is the movement of many OEMs towards global vehicle platforms, with the resulting demand for high-quality, consistent materials that meet specifications across multiple regions. With this investment in Bay St. Louis, we have significantly boosted our capability to meet that demand and deliver even more responsiveness to our global customers, their engineering teams, and suppliers.” Natta systems for the polymerization of olefins. The plant’s strategic location in Jubail will enable it to meet the growing demand for tri-ethyl aluminum, which is currently being supplied to the region from Albemarle plants in Europe, Asia and North America. Koos Van Haasteren, SABIC Executive Vice President, Performance Chemicals, noted that SABIC is on the way to becoming an influential player for diversified, value-added specialty products. The joint venture is seen as a nucleus for strong growth in catalysts and co-catalysts, and its success will strengthen the company’s global competitiveness. Innovative Plastics installed the new PP capacity in Bay St. Louis by drawing upon the design and technology of the company’s Genk plant, the largest greenfield PP compounding plant ever built in Europe. This worldscale facility supplies PP compounds to Europe and SABIC STAMAX LGFPP composites to Europe and Asia Pacific. Genk also houses a Compounding Innovation Center with three pilot lines designed to speed the development cycle for new products and processes. * Trademarks of SABIC Innovative Plastics IP B.V. November/December 2011 SABIC 11 SABIC NEWS Key appointments in ME, Europe and Americas In recent months, SABIC has announced a series of key appointments either to fill existing positions or create new ones EVP, Innovative Plastics Keith J. Smith, formerly of DuPont, has been appointed as the new Executive Vice President of SABIC’s Innovative Plastics business. He will succeed Charlie Crew who retires on January 1, 2012. Smith joined SABIC effective December 1, 2011 to plan for the transition. “Since joining the SABIC organization, Charlie has been a valued contributor to the success of the Plastics’ business acquisition from GE,” said SABIC CEO and Vice Chairman Mohamed Al-Mady. “He has been a valued partner and important source of advice during a very critical period of organizational change. We wish Charlie the very best in the future.” Smith is a graduate of Rensselaer Polytechnic Institute with Bachelor’s and Master’s degrees in Chemical Engineering. He joined DuPont in 1980. His most recent position with DuPont was Vice President, Sourcing and Logistics, Wilmington, Delaware. Prior to this, he served in a number of key positions at DuPont. “Keith is an accomplished executive with diverse expertise and a proven record of delivering productivity improvements and growth,” said AlMady. “I am confident he will sustain this success for himself and our company.” 12 SABIC November/December 2011 Regional VP, Saudi Arabia-MEA Talaat Al Dafer Al-Qahtani was appointed Vice President, Saudi Arabia, Middle East and Africa Region, effective October 1. Al-Qahtani is reporting to Abdullah Bazid, EVP, Corporate Strategy and Planning. “Al-Qahtani brings a strong understanding of relationships in government as well as a broad and fundamental knowledge of the investment aspirations of key economies in the region,” Bazid said. Al-Qahtani has a rich background spanning executive management and influencing skills. Prior to his SABIC assignment, he was the executive in charge of government affairs at King Abdullah University of Science and Technology (KAUST). Previously he held key senior roles several national and regional organizations. Al-Qahtani holds a Phd in Quality Management from the Arabian Academy for Sciences, Technology and Marine Transport, Alexandria, Egypt; a Master’s degree in Information Studies from Loughborogh University of Technology in the UK; and a Bachelor’s degree in Agricultural Sciences, Major Food Industries and Animal Production, from King Saud University, Riyadh. He also holds a diploma in Economics and Working Methods from the University of California. Regional VP, Americas John Dearborn was appointed to the newly created position of Regional VP, Americas effective September 26. Dearborn is based in Houston, Texas, and is reporting to Abdullah Bazid, EVP, Corporate Strategy and Planning. “The Americas region plays a critical role in the future success of our Company,” said Bazid. “John’s extensive leadership experience and in-depth knowledge of the chemical industry will undoubtedly help drive SABIC’s growth agenda forward.” Dearborn brings over 30 years of experience in the chemical industry. From 1981 to 2001 he held various roles in the Union Carbide Corporation. In 2001 he joined Dow Chemical Company where he held VP roles for a variety of global business units including Technology Licensing and Catalysts, Olefins, and Energy. He also served as President, India, Middle East and Africa region. Most recently, Dearborn was the VP, Business Development, Global Energy Megatrend. Dearborn holds a Master’s degree in chemical engineering from the Stevens Institute of Technology, and an MBA in finance and international business from the Stern School of Business, at New York University. SABIC NEWS New country leaders for Europe VP, Global Supply Chain Saleh Al-Shabnan, who oversaw the corporate supply chain project EMDAD, has been promoted as Vice President, Global Supply Chain Center of Excellence, Corporate Strategy and Planning, effective December 1. He served in several key positions before assuming the EMDAD assignment in 2007. Al-Shabnan is a graduate in Industrial Management from King Fahad University of Petroleum and Minerals (KFUPM) of Dhahran, Saudi Arabia. As the EMDAD Project Executive with the responsibility to head up a global initiative to develop an industry leading supply chain capability for SABIC, Al-Shabnan has been reporting directly to the Vice Chairman and CEO. His mandate is to develop a globally integrated supply chain supported by a world-class IT platform, business processes and global logistics network and infrastructure for SABIC’s Chemicals, Polymers, Metals, Fertilizers and Performance Chemicals businesses. In 2009, Al-Shabnan was also nominated as the General Manager of the Chemicals SBU supply chain. In his new global role as Vice President, Global Supply Chain COE, he will oversee supply chain process and continuous improvement, technology and innovation, project management and logistics strategic sourcing serving all products and SBUs. HR Director, Europe Wim Dufourné joined SABIC as the Human Resources Director for Europe on November 1, reporting to HR EVP Yousef Al-Benyan. Dufourné comes with 20 years of HR experience at Shell, and brings international experience from assignments in Europe, Asia, and the Middle East. He will work from offices in Bergen op Zoom and Sittard, and provide leadership to the HR team across Europe. Dufourné , who has a Master’s degree in International Law from Erasmus University in Rotterdam, joined Shell’s HR team in Rijswijk in the Netherlands after university, and progressed to many other HR manager assignments in different divisions. This experience includes a senior HR role in Southeast Asia, where he gained experience with nationalization arrangements. He spent several years in the UK with Shell’s chemical business, including an assignment leading HR support for mergers and acquisitions. He has also carried out executive leadership roles in HR with Rabobank International and Suzlon Energy, as well as managed his own consulting service. Dufourné has regional experience from a previous assignment at Maersk Oil in Qatar. In Europe, SABIC has appointed new country leaders. The new structure will ensure a common approach that will be focused on supporting the needs of local markets and customers. It will also help SABIC customers benefit from the combination of the company’s global assets and local expertise. The appointment of country leaders (pictured below) will ensure an even stronger local SABIC presence across Europe with a dedicated team focused on providing tailored customer service. By combining a deep understanding of local market challenges and a reliable supply of an extensive material portfolio, SABIC continues to be a strong partner who supports the ambitions of its customers. Huub Meessen, former Vice President Europe, says: “By bringing the existing business and sales organizations literally under one roof across our European sales network, we will be in a much better position to provide customers with coordinated access to the company’s full portfolio of materials and services, as well as aligned service practices to accelerate time to market. Furthermore we will be better able to connect with relevant plastics governances and institutes.” FROM LEFT Giorgos Moukas, CL Greece; Paul Booth, European Director for Government Relations & Public Affairs; Daniel Gambus, CL Iberica; Huub Meessen, former Vice President Europe; Henriëtte Smulders, Lead Sales Offices Planning & Performance Management & Change Manager; Olivier Janin, CL France; Henrik Hansen, CL Nordic; Aniko Nyeki, CL Hungary; Konrad Hellmann, CL Germany; Daniele Petrini, CL Italy; Piotr Kwiecien, CL Poland; Michael Allen, CL UK; Hilde Janssen, Management Assistant; Roberto Pozzi, CL Czech Republic; Russia’s CL Geert Drummen is not in the picture November/December 2011 SABIC 13 SABIC NEWS SABIC Post-Doctoral Fellowship Award launched at KAUST SABIC has launched a one-year post-doctoral fellowship program in cooperation with King Abdullah University of Science and Technology (KAUST) in Saudi Arabia. At an inaugural function on November 19 at the KAUST campus in Thuwal near Jeddah, 15 post-doctoral fellows from the university were awarded the fellowship. The fellowships have been instituted to support talented scientists and technologists with the goal of finding solutions for local and global challenges. “We are supporting outstanding research that is not only related to our business and future plans, but also relevant to the development and expansion of knowledge for the benefit of humankind. Most of these investigative areas are long-term, blue-sky, and are intended to serve the interests of the Kingdom, the region and the world,” Mohamed Al-Mady, SABIC Vice Chairman and CEO, said. Prof. Stefan Catsicas, KAUST Provost, said: “We are truly proud of our young scientists and grateful that their post-doctoral research has been endorsed by SABIC in this way. These fellowships represent more than just financial support to these 15 researchers, they represent an understanding that true solutions to the greatest challenges of our time – food, water, energy, and the environment – are multi-dimensional and require the input and collaboration of all sectors.” The 15 post-doctoral fellows who received the inaugural awards belonged to three academic divisions 14 SABIC November/December 2011 at KAUST: Chemical and Life Sciences and Engineering; Mathematical and Computer Sciences and Engineering; and Physical Sciences and Engineering. The winning fellows’ research interests span the critical areas of new and renewable energies, water research, advanced materials, catalysis, scientific computational services, renewable feedstocks, materials engineering, and nanotechnologies. Candidates for the awards were nominated by their research supervisors, while the winners were selected by a specialized committee comprised of experts from SABIC and the university. This award will be granted annually for below Some of the SABIC fellowship awardees with KAUST and SABIC officials after the inaugural function five years to exceptional post-doctoral researchers involved in areas of long-term research. The winning fellows will receive funding support from SABIC for one year of their research at KAUST. The program will be evaluated annually by joint experts from SABIC and KAUST and based on the outcome and performance of the fellows, research funds may be renewed or awarded to other candidates. Dr. Ernesto Occhiello, SABIC Executive Vice President for Technology and Innovation, commented: “Research excellence has been instrumental in making SABIC an outstanding petrochemical success story. By continuing to invest in technology and innovation, SABIC is creating market opportunities and products that will ensure its sustainable success. SABIC’s support for the awards is part of our strategic partnership with the university to produce advanced technologies and innovative solutions.” Dr. Abdullah Almojel, Vice President for University Development at KAUST, said: “The SABIC Post-Doctoral Fellowship Awards represent an exciting cooperation between SABIC and KAUST – a cooperation intended to support the research programs of talented young scientists, and to promote the development of technology and innovation in Saudi Arabia. At the University Development, our mission is to attract and steward partnerships with donors and funding partners that share the vision of our university. In SABIC we believe we have found a long-term partner that exemplifies a shared commitment to harnessing science and technology for the benefit of the people of Saudi Arabia and beyond.” SABIC NEWS Kaust lauds strong partnership The King Abdullah University for Science and Technology (KAUST) has described SABIC as a “strong partner and supporter” of its research initiatives. A report in the university’s periodical, ‘KAUST in Review’, says that since SABIC’s Strategic Partner membership in the KAUST Industrial Collaboration Program began in May 2009, the company’s involvement at various symposiums, inaugural events, roundtable discussions and Career Days has shown that it values its relationship with the university, its faculty, scientists and students. The report notes that SABIC has steadily strengthened and diversified its participation with KAUST over the years – just as it has grown since its founding in 1976 to become one of the world‘s largest petrochemical companies today, with its clear vision to become the world‘s preferred leader in chemicals. Referring to SABIC’s ongoing collaboration with KAUST, the report points out that SABIC has established a Center for Research and Innovation (CRI) at the university. Within five years, SABIC CRI will house about 150 scientists in diversified disciplines. By the end of 2011, the company plans to have about one-third of that number in residence on the KAUST campus, and working in CRI. The vision of this Innovation Center is to serve as a bridge between industry and academia with special focus on strategic areas like alternative feedstock, like bio-renewables, fundamental catalysis, advanced materials for future technologies like solar, membranes and flexible electronics and water. “Equally exciting is SABIC‘s commitment to funding horizontal research. The company is currently supporting 15 post-doctoral researchers and scientists at KAUST who are affiliated with various KAUST Research Centers,” it says. The diverse SABIC portfolio provides a wide range of research environment and exceptional opportunities for academia-industry partnerships. With one to three years of SABIC sponsorship, these young researchers will be supervised, evaluated, and further challenged to make an impact on innovation, creativity and commerce, as SABIC‘s social responsibility and “culture of innovation” join hands to develop and support new talent. “Continuing to build the SABIC bridge between the university and industry, SABIC is establishing a five-year Endowed Research Chair in the field of polymer catalysis, and also sponsoring joint research programs at various KAUST Research Centers,” the article says. above Al-Benyan (second from right) listens as Al-Ansari explains the university’s facilities using a display model SABIC, PMU sign Foreign Scholarship Preparatory Program SABIC and Prince Mohammad bin Fahd University (PMU) in Saudi Arabia’s Eastern Region have signed an agreement under which the university will conduct an intensive threemonth preparatory program for SABIC students, who will be sent on scholarship to the United States early 2012. These students represent the seventh batch of SABIC Foreign Scholarship Program, which was launched in 2005. The signing ceremony was held on August 23 at the PMU headquarters in Al-Khobar, in the presence of Yousef AlBenyan, SABIC Executive Vice President, Human Resources, and Dr. Issa Al-Ansari, PMU Rector. Al-Benyan and the accompanying delegation received a detailed briefing about the university and its advanced educational facilities. Al-Benyan said SABIC wants to ensure that the students are fully prepared before they are sent out to live among other communities. Al-Ansari assured that the PMU training program was designed according to the needs of SABIC Education Programs, aiming to provide the students with basic skills. They include English language skills and other such necessities, as well as preparing them to understand Western culture and the skills of adapting. They were also briefed on how to engage with American society and go about their daily life with confidence to make it easier for them to successfully complete their studies in the US. November/December 2011 SABIC 15 SABIC NEWS Rayong plant draws safety praise SABIC Thailand’s Rayong plant recently conducted an elaborate emergency response drill at the plant premises that was witnessed by over 200 people including provincial authorities. Fire trucks rolled into the plant premises and fire fighters in full gear prepared to hit the facility with the water jets as SABIC represented more than 200 companies from the Eastern Seaboard Industrial Estate to stage the plant-wide emergency response drill. The exercise included fire-fighting, first aid, chemical spill response and environmental monitoring. Thawatchai Theadphouthai, Governor of Rayong Province, praised the professionalism of SABIC’s emergency response team: “This is one of the best emergency response teams I have seen in Eastern Seaboard Industrial Park. The team was extremely professional and skillful, and operated with a high level of efficiency.” The demonstration was initiated by the Industrial Estate Authority of Thailand (IEAT) and the Rayong Provincial Government, and was attended by members of the local community, government officials, and employees from neighboring plants. “It is critical that we are prepared for all kinds of emergencies as part of our commitment to industrial safety,” said Sarun Sangkatavat, SABIC Thailand Country Leader, highlighting the importance of emergency response readiness. “There is nothing more important than to ensure that our people go home safely to their families every day.” The successful drill demonstration followed the sixth consecutive Thailand National Best Safety Management Award received by the Rayong plant in July this year for its outstanding EHSS performance. Above Fire fighters geared up in self-contained breathing apparatus and water hoses 16 SABIC November/December 2011 SAFER workshop held in the Netherlands SABIC’s European EHSS (Environment, Health, Safety and Security) hosted and organized a four-day regional program recently at the Bergen Op Zoom site in the Netherlands. The key event at the program was the SAFER (SABIC Assurance Program for EHSS Risks) leadership awareness workshop on September 28 attended by senior SABIC staff from representing various sites and functions. The workshop was introduced by Ali Al-Garni, General Manager Global EHSS. He emphasized the importance of SAFER to SABIC for the effective stewardship of EHSS risks across the company. They include process safety, personal and community safety, health, environment and security. He also stressed the importance of early implementation on selected sites, followed by full implementation by 2014. Al-Garni took the opportunity to acknowledge the commitment of the Above SAyed Azhar Moin, EHSS Global Assurance Lead, addresses the Safer workshop at the Bergen Op Zoom site European Region to the EHSS operating rhythm, citing the European EHSS Council as an excellent example of true regional teamwork. Syed Azhar Moin, EHSS Global Assurance Lead, delivered the SAFER workshop. In the discussions which followed, the European leadership made clear their recognition of the value of the program, both to efficiently manage EHSS risks and to ensure the visibility, acknowledgement and management of these risks at the appropriate levels of management in each region and within SABIC overall. As part of the program, SABIC Corporate EHSS also presented the SAFER awareness workshop to mark the ‘European Process Safety Day’. The audience, made up of process safety experts from the European sites, expressed their support for the SAFER program. They said that it will further strengthen the process safety requirements that are already defined within SHEMS (Safety, Health and Environment Management System). SABIC NEWS above TAl-Shraihi receives the honor from Dr. Al-Othman Honor for sponsoring Fourth International Chemistry Conference Dr. Abdullah bin Abdul Rahman AlOthman, Rector of King Saud University (KSU) in Riyadh, has honored SABIC for its participation in the Fourth International Chemistry Conference in Riyadh from November 19 to 21 as the Diamond sponsor. Dr. Fahd Al-Shraihi, General Manager, SABIC Riyadh Technology Center, received the honorary plaque on behalf of Mohamed Al-Mady, SABIC Vice Chairman and CEO. The Saudi Chemical Society and the Department of Chemistry, KSU, organized the event to mark the UN-proclaimed International Year of Chemistry (IYC) 2011. The IYC is being observed worldwide to highlight the achievements of chemistry and its contributions. The conference discussed several important topics, including analytical chemistry, environment chemistry, green chemistry, physical chemistry, electrochemistry, organic chemistry, chemistry of natural products, nanotechnology, renewable energy, water research, and industrial chemistry. Mitsubishi delegation visits SAFCO A delegation from Mitsubishi Japan, visited SABIC affiliate SAFCO (Saudi Arabian Fertilizer Company) on September 10, and was received by Fahad Rashed Al-Otaibi, the company President. The two sides discussed the prospects for developing cooperation between the two companies. The delegation was briefed about the company and its local and global achievements. The guests toured the company’s LEFT The plants and control room. They visiting praised the company’s achievements delegation in the SAFCO in all respects, including safety and control room environment. November/December 2011 SABIC 17 innovation the regions to proceed to the Innovation Camp. At the SABIC Innovation Camp, the teams will receive special training to transform their ideas into a business opportunity plan. The business plans will eventually be presented to the ‘SABIC Grand Jury’ consisting of Al-Mady and Executive Vice Presidents in June 2012. ‘MY IDEA’ goes global SABIC infused new life to its slogan of ‘culture of innovation’ with the launch of ‘Market Your IDEA’ (MY IDEA) as a pilot program in Europe. Following the huge success of the pilot, MY IDEA has been rolled out across SABIC global Unprecedented at SABIC, the program is running in five regions – Europe, the Middle East, the Americas, West Asia and South-East Asia. MY IDEA provides every SABIC employee a potential opportunity to originate and lead a new $50 million business. Mohamed Al-Mady, SABIC Vice Chairman and CEO, launched the global My IDEA program on November 14. Under the program, new innovation ideas have been invited from all staff. Ten most promising ideas would be selected from each region. Once selected, the idea owners would be asked to form a team to develop the idea into business concepts. SABIC regional operations will hold ‘marketplace events’ to enable the idea owners present their concepts to colleagues and to recruit members for their team. Then the ideas and teams in each region will be ranked according to the strength of the idea and the team. Following this, the Innovation Taskforce, a panel of Innovation specialists from SBUs and Corporate Technology and Innovation, will select one idea and team combination from each of 18 SABIC November/December 2011 PORTAL Divided into four distinct phases, the global MY IDEA program will run for eight months until June 2012. The opportunity being offered to all SABIC employees is to conceive a viable and compelling new business idea, which if successful, may be adopted with the full development backing of SABIC resources. Launching the program, Al-Mady described the global program as one that empowers each employee to help “innovate how we innovate.” In a recorded video message to SABIC’s staff worldwide, he said: “The successful pilot project in Europe has already shown the strength of Market Your IDEA and resulted in the incubation of five business opportunity plans that were created during the MY IDEA process. Therefore, we now have decided to run MY IDEA on a global scale. We look forward to hearing your new business ideas. “Ideas are the core of the program, and between now and the end of the Idea Submission phase, regional teams of Technology and Innovation specialists will evaluate and give feedback on each and every idea submitted by SABIC employees through the Innovation Portal,” he said. “You could be the leader of one of those teams and your journey starts today. To guide and inform below The marketplace events organized as part of the MY IDEA pilot program in Europe drew enthusiastic participation from staff. Similar events will be organized in all five regions as part of the global program innovation SABIC Ventures to invest in innovative technologies SABIC has announced the launch of a new global corporate venture capital arm, SABIC Ventures, in the Netherlands, with the primary goal of seeking out innovative technologies and businesses consistent with the company’s global strategy. SABIC Ventures aims to build up a portfolio of technology options for the company’s future businesses. It will do this by investing directly both in seed stage, early stage and late stage companies. The new organization will lead or co-lead investment while also investing in projects alongside other venture capitalists. Commenting on the launch of the organization, Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that SABIC Ventures has been developed as an investment vehicle to accomplish profitable growth. “SABIC aspires to be the preferred leader in chemicals. We will accomplish this through organic growth by investing in new assets and expanding current assets, mergers and acquisitions in targeted areas, and new business creation. Venturing provides growth opportunities for new businesses.” SABIC Ventures will be funded by an Innovation Fund, which will be managed by the organization. The Fund will cover investments in start-up companies. Amongst the areas which have been designated for investments are advanced materials and composites, alternative feedstocks for chemicals and materials, and alternative energy and cleantech. At the same time, the organization will be constantly exploring new areas of interest. The targeted countries for sourcing venturing investments are the USA, Europe and Asia. “The organization will have a global reach. We are building a global organization with deal flow and investment management support from all over the world,” Al-Mady said. you about every detail of the program, we have opened an Innovation Portal that each of you can visit to learn more about Market Your IDEA. This is an exciting and unprecedented opportunity for each of you to showcase your full potential,” Al-Mady said. REGIONAL CHAMPIONS For every region, a champion has been appointed to coordinate and facilitate all the activities involved in the program. The champions have been thoroughly briefed on all phases of the project and their responsibilities. They have also heard about the enthusiasm that MY IDEA generated among the employees who participated in the pilot Innovation Camp. “Innovation is at the heart of what we do every day,” says David Wildgoose, Commercial Operations Leader at SABIC Innovative Plastics and champion for the Americas. “Market Your IDEA allows us to tap even deeper into the innovative spirit of our people.” The champions are David Wildgoose, The Americas; Guang Liu, East Asia; Henk Verhoogt, Europe; Mohammad Hamdalla and Abdul Al-Shamrani, Middle East; and Sudhakar Marur, South Asia. “I believe that the program is an exciting opportunity for all SABIC employees to submit the ideas that they believe to have a potential for success and develop them into something tangible,” says Mohammad Hamdalla, Innovation Engineer at SABIC Metals, and one of the champions for the Middle East. Henk Verhoogt, Head of IDEAtion & Innovation and Market Your IDEA Project Leader, says: “We are very happy to have a global team of champions who are the all very enthusiastic to take part in MY IDEA. I am convinced that these champions will be a great support to making the Market MY IDEA program a global success.” “The successful pilot project in Europe has already shown the strength of Market Your IDEA and resulted in the incubation of five business opportunity plans that were created during the MY IDEA process” Mohamed Al-Mady, SABIC Vice Chairman and CEO CORPORATE INCUBATOR SABIC has launched a new organization, Corporate Incubator, which will invest corporate funds and provide support to internal ventures that are distinct from the core business of the company. The function of the Corporate Incubator is to be a breeding ground for internal ventures. The purpose is to bring ideas to market by providing financial support and by helping the internal ventures to succeed. Incubator projects will be funded through an Innovation Fund installed by the Executive Committee. The Fund covers investment in startup companies within the Corporate Incubator. It provides room to acquire Intellectual Property (IP) and other assets to reduce time-to-market. The Corporate Incubator is the place where business plans selected under MY IDEA are incubated. At the moment the business plans that were approved at the MY IDEA pilot project in Europe are being incubated. November/December 2011 SABIC 19 Exhibitions & conferences GPCA Annual Forum Regional players urged to focus on developing downstream industries Above Prince Faisal and Al-Mady at the inauguration of the GPCA Forum Prince Faisal Bin Turki Al-Saud, Advisor, Saudi Ministry of Petroleum & Mineral Resources, lauded the theme of the Gulf Petrochemicals and Chemicals Association (GPCA) Annual Forum, ‘Moving Downstream – Creating Added Value and Sustainable Growth’, and called it the defining challenge of the regional petrochemicals industry. Delivering the inaugural address at the Sixth Annual GPCA Forum in Dubai on December 13, he urged regional players to focus on increasing the supplies to the conversion industry. More than 1600 delegates were present for his keynote speech on the first day of the region’s flagship petrochemicals event. The GPCA Forum was held from December 13 to 15. “Exporting the vast majority of the petrochemical production means jobs are being created elsewhere and this is a growing concern. With a fast growing, well-educated population who want jobs, economic diversification and downstream expansion have become a necessity. This is needed to attract wider 20 SABIC November/December 2011 industrial investment to create the sustainable growth necessary to meet the aspirations of the next, and future, generations. Much of this will be focused on creating and capturing the value that is currently captured by the region’s export customers,” he said. He went on to focus on Saudi Arabia, calling this the ‘golden era’ for the Kingdom, with production expected to grow to 100 million tons by 2016, a 250 % growth since 2006. The future is looking bright, he said, with 120 new chemical and petrochemical products coming into the market. “Sustainable value creating opportunities lie downstream and are linked to the development of industrial clusters across the region, particularly those being established to provide materials for the automotive, flexible packaging and appliances sectors,” he added. Mohamed Al-Mady, SABIC Vice Chairman and CEO and Chairman of GPCA, expressed optimism over 2012 being another positive year for the region’s Exhibitions & conferences petrochemical industries despite concerns over Europe slipping back into recession as a result of the ongoing sovereign debt crisis. In his opening remarks at the Forum, Al-Mady based his optimism on the general consensus that the Eurozone will have a slightly positive growth, and the US will avoid a double dip recession. “If this growth forecast prevails in 2012, it should be a good year for our industry. Financial results should receive an additional boost due to improved industry operating rates in 2012 as there will be less new capacity coming on stream.” He also pointed out to the good profitability enjoyed by most chemical producers in 2011. Al-Mady stressed that Innovation will always be the key driver in the petrochemical industry’s efforts to remain competitive and relevant players. “Comparative advantage is not static but is dynamic and industries must maintain continuous improvement, continuously learning and achieving technological upgrading,” he said. On the issue of Sustainability, Al-Mady said that just as the petrochemical industry has provided the technology that has contributed tremendously to good health, good lifestyles and global mobility, it must now provide business solutions for a sustainable planet. “The Gulf petrochemical suppliers must possess the most material and energy efficient processes and we must produce products that enable the entire value chain to be more sustainable.” While noting that the GPCA has made significant progress in establishing the Responsible Care initiative in the Middle East and Gulf region, Al-Mady said: “The Responsible Care Committee has done an excellent job in designing an implementation program for the region and building alliances with peer associations around the world.” Al-Mady regretted the fact that the slowdown in global economic growth was providing an environment that leads to protectionist activities. “As an industry and as a trade association that believes in the value and benefits associated with free trade, we must do our best to advocate against unfair trade practices wherever they may appear,” he said. Stephen Pryor, President, ExxonMobilL Chemical Company, Peter L. Cella, CEO, Chevron Phillips, Jim Gallogly, CEO, LyndollBasell and Tom Crotty, Director, INEOS Group also shared their insights and expertise on the first day of the Forum. Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, delivered the welcome address on Day 2 of the Forum. Other key speakers on the second day of the event included Hamad Rashid Al Mohannadi, Deputy Chairman, Qatar Petroleum, Hassan Ahmed, Partner, Head of Research, Alembic Global, Brad Bourland, Advisor, Chief Economist and Managing Director of Proprietary Investments, Jadwa Investment, Koos Van Haasteren, Executive Vice President - Performance Chemicals, SABIC, Luther C. Kissam IV, CEO, Albermarle and Andrew Monro, Global Advisory Lead for Petrochemicals, KPMG. ABOVE Al-Mady addresses the opening session November/December 2011 SABIC 21 Exhibitions & conferences GPCA Talent Convention HR Benchmark launched for regional industry Gulf Petrochemicals and Chemicals Association (GPCA) held its first Talent Convention in Dubai on October 9, 10 and 11. A highlight of the event was the launch of the GPCA HR Benchmark, an initiative designed to benchmark GPCA members against the world’s best performing companies. The objective of the benchmark is to help companies in the region to ascertain areas of improvement in HR management and adopt world-class standards. On the final day of the event, GPCA also signed a memorandum of understanding (MOU) with the Arabian Society for Human Resource Management (ASHRM) to collaborate on research, workshops and events. Yousef Al-Benyan, SABIC’s Executive Vice President Human Resources, was a key speaker at the event, which was themed “Achieving sustainability through agile organizations.” In a presentation titled “The way to become an agile organization,” Al-Benyan stressed the importance of corporate values and strong leadership, with HR focusing on three main objectives for employees: Attract, Retain and Develop. Sharing SABIC’s vision of becoming an agile organization, he said the company’s employment value propositions are geared to attract, retain and develop staff. The most important of these is the need to create opportunities for growth and development for individuals through competencybased career paths and ladders, a holistic talent review process and individual development 22 SABIC November/December 2011 above Al-Benyan addresses the GPCA Talent Convention in Dubai “Issues such as the importance of human development, creating agile organizations and the implementation of HR best practices have truly been driven home” Dr. Abdulwahab Al Sadoun, Secretary General of GPCA programs. He said SABIC Learning and Development (L&D) programs and the SABIC Academy will play a vital role in creating growth and development opportunities for staff. Al-Benyan listed rewards, optimal utilization of knowledge and skills of employees to make their work challenging and interesting, a value-based organizational culture that empowers employees and ensures participation at relevant levels, open and honest communication and constant measurement of employee engagement and actions to improve their involvement as key HR value propositions for an agile organization. He said it is important to develop leaders in line with corporate values and leadership competencies. It is vital to ensure development of future leaders through succession planning, executive coaching and by providing L&D challenges, he added. Dr. Abdulwahab Al Sadoun, Secretary General of GPCA, described the inaugural Talent Convention as hugely productive. “Not only was the high-level program incredibly well-received by delegates and speakers alike, the spirit of dialogue throughout the three days was heartening and uplifting,” he said. “Issues such as the importance of human development, creating agile organizations and the implementation of HR best practices have truly been driven home. I am certain that delegates are now well-armed with the knowledge they have garnered here to truly enhance and improve their HR practices,” he added. The convention, which took place at Park Hyatt Hotel, Dubai, was designed to give local and regional company executives a platform to exhibit their knowledge in the fields of strategic organizational capabilities and development and talent management. Ms. Maha Mulla Hussain, GPCA Board Member and Chairperson GPCA HR Committee, President & CEO of Kuwait-based Petrochemical Industries Company (PIC), opened the convention proceedings by highlighting the importance and relevance of the event. Sheikh Khaled Bin Zayed Al Nehyan, Chairman, Bin Zayed Group, was the keynote speaker at the inaugural session. “Paying attention to the human element has become so integral to the success of any organization in this part of the world. Today you can acquire any resource but unless you have the talent to efficiently use these resources and create competitive advantage, it means very little. People are key and it is our responsibility to harness this talent and make our communities, be it our companies or our countries, as efficient as possible,” he said. Dr. Donald Sull, Professor of Management Practice in Strategic and International Management and the Faculty Director of Executive Education at the London Business School, spoke at the convention after conducting a pre-conference workshop the day before for delegates. Exhibitions & conferences GPCA Supply Chain Conference Maritime piracy cited as major threat “Strengthening the GCC supply chain against challenges and threats” was the key theme of the Third GPCA Supply Chain Conference, held in Abu Dhabi from October 18 to 20. Over 300 supply chain professionals and business representatives from around the world attended the event, where experts reviewed key supply chain issues for the region. While maritime piracy was singled out as a major potential threat to the supply chain, the event also focused on other regional issues such as GCC customs regulations, human resources, sustainability and responsible care, third party logistics and strategies to overcome the challenges posed by long supply chains. The keynote address was delivered by Rashed Saud Al Shamsi, Petrochemicals Director, Abu Dhabi National Oil Co. (ADNOC) and Chairman of Borouge. Hamad Al Terkait, Chairman - Supply Chain Committee, GPCA and President and CEO, EQUATE Petrochemical Co. of Kuwait, welcomed the delegates and highlighted the diversity of this year’s participants. He noted that the supply chain is increasingly seen as a business that needs to be invested in and not just a support service. Saleh Al-Shabnan, SABIC’s Project Executive, Supply Chain Management Project (EMDAD), and Vice Chairman of GPCA Supply Chain Committee, was a key speaker at the pre-conference workshop that focused on measuring and mitigating the effects of piracy on trade flows in the petrochemical and chemical industries. Al-Shabnan also delivered the reconvening remarks on the second day of the conference. Meshal Al-Ghaith, SABIC’s Global Supply Chain Execution Manager Chemicals, spoke of overcoming the challenges of the GCC region’s long supply chains. Al-Ghaith, who also participated in the panel discussions, used SABIC’s success with its EMDAD project to explain effective ways of tackling the region’s challenges. Dirk Van Den Bosch, Chief Commercial Officer UAE Region, DP World noted that 34 port projects are underway in the GCC worth US $ 42.5 billion, which will significantly expand the supply chain sector in the region. Gulf governments are moving to meet increased demand, and 2013-2015 is a critical period when port utilization is expected to average 80 percent. The session on “Meeting the challenges of piracy” was addressed by Dan Starta, Managing Director and Partner – Middle East, A.T. Kearney and the panel included Captain Ranjan Mookherjee, Managing Director, Vega Ships Management, Toralf Sorenes, VP for Risk Management, NCC Odfjell Chemical Tankers JLT and Captain Gamal Fekry, Owners Representative and General Manager, Safety and QA Dept, Bakri Navigation Company. According to official statistics, organized piracy has become a major threat to regional trade and maritime security, costing the global economy between $7 and $12 billion per year. Piracy attacks have also been on the rise this year throughout the region as the use of mother ships facilitated piracy activity. Starta provided an overview of the pre-conference workshop that focused on mitigating the effects of piracy on petrochemical and chemical trade flows. He shared some staggering statistics with delegates, including the fact that piracy is likely to be the second largest generator of money in Somalia, bringing in over USD $200 million annually because of an increase in attacks and the size of the ransom and improvement in attacking and negotiating tactics. “The impact of piracy on the supply chain is immense and must be tackled strategically. Establishing contingency plans and considering piracy in supply chain planning are just some of the anti-piracy actions that petrochemicals companies can employ,” according to Starta. The session on rail developments in the region was addressed by Dr. Rumaih Al-Rumaih, CEO, Saudi Railway Company (SAR) and Richard Bowker, CEO, Etihad Rail. below Al-Ghaith delivers SABIC’s presentation at the supply chain conference November/December 2011 SABIC 23 Exhibitions & conferences SABIC at CPCIC Committed to China’s priority for sustainable growth SABIC recently reaffirmed its commitment to support China’s national development priority for sustainable growth as detailed in the country’s 12th Five Year Plan. The support is evident in the key investments that SABIC is making in the country, and this was reiterated at the China Petroleum and Chemical International Conference (CPCIC) 2011, held during September 7-9 in Tianjin. SABIC had a major presence at CPCIC, and was also a sponsor of the event. Themed “The Next Five Years: Building a Foundation for Sustainable Growth,” the annual event proved to be an effective platform for SABIC, its partners and other industry players to discuss China’s petrochemical industry growth strategies in the context of the country’s new 12th Five Year Plan. CPCIC is supported by China Petroleum and Chemical Industry Federation (CPCIF). At the conference, SABIC’s participation was led by Abdullah Saeed Bazid, Executive Vice President of Corporate Strategy and Planning, and Li Lei, Vice President and Regional Head of Greater China Region. Lei and Lim Pung Loi, Regional Manager, Oxygenates Asia Pacific, held several meetings during the event, networking with government officials and industry partners. CPCIC was attended by 600 delegates. Bazid and Lei also met with Huang Xingguo, Mayor of Tianjin Municipal Government, Cui Jindu, Vice Mayor of Tianjin Municipal Government and He Lifeng, Deputy Secretary of the Communist Party of China Tianjin Municipal Committee. Addressing the conference, Bazid reaffirmed the commitment from SABIC to support China’s 24 SABIC November/December 2011 above Abdullah Bazid (second from right) at the CPCIC inaugural function “This highlights good opportunities for China and Middle East petrochemical industries to cooperate as growth partners to optimize the usage of the scarce hydrocarbon resources in the global marketplace” Abdullah Saeed Bazid, Executive Vice President of Corporate Strategy and Planning national development priority for sustainable growth. Expanding his key message of “growth partner in one global market,” he highlighted the strong bilateral trading relations between China and Middle East. This trading partnership continues to strengthen between the two dynamic economies. “Middle East has been one of the leading crude suppliers globally and to China over the years. In 2010, China alone imported some US$65 billion or 16 percent of the total crude export from the Middle East. In addition, China also imported and exported petrochemical, chemicals and various finished products from and to GCC countries,” Bazid said. China petrochemical and chemicals growth is expected to continue with strong linkages to its GDP growth rates. Domestic production growth is also likely to continue with aggressive development of new projects. “This highlights good opportunities for China and Middle East petrochemical industries to cooperate as growth partners to optimize the usage of the scarce hydrocarbon resources in the global marketplace,” he said. Against this backdrop, Bazid elaborated on the strategic importance of China to SABIC: “As a global market leader in the petrochemical industry, SABIC has already established a strong market position in China, generating double digit growth year-on-year. The Chinese Government’s focus on developing the western regions in China is in line with SABIC’s ambition to assiduously explore investment opportunities, especially in the western regions to better serve our customers and new industries in these emerging markets.” Since its establishment in China in 1985, SABIC has been growing rapidly and is now a leading petrochemical and engineering plastics products supplier, investor and employer in China. SABIC’s aggressive growth plans in the country were announced during Chinaplas 2011, including: • A new partnership with Sinopec to build a US$1 billion Polycarbonate (PC) plant in Tianjin with a 260 kilo metric ton annual capacity when fully operational in 2015. The new PC plant will be located at SSTPC (Sinopec SABIC Tianjin Petrochemical Co. Ltd), Tianjin. • A new 60,000 sqm Technology and Innovation Center and Greater China Regional Headquarters in Shanghai. The new center will be fully operational in 2013. Expressing SABIC’s confidence that the 12th Five Year Plan will provide greater impetus for growth, Lei commented: “The Chinese Government has created a very conducive environment for businesses to operate and continuously invest in China. In line Exhibitions & conferences left SABIC representatives with visitors at the SABIC stand at Saudi Agriculture 2011 SABIC at Saudi Agriculture 2011 Focus on the role of fertilizers The role of SABIC as a leading global fertilizer producer was highlighted at Saudi Agriculture 2011, which was held at the Riyadh International Convention and Exhibition Center from September 19 to 22. The 30th edition of the event, also known as the International Agriculture, Water and Agro-Industry Show, attracted over 200 exhibitors from all over the world. The exhibition was inaugurated by Waleed Abdulkarim El Khereiji, the Director General, Grain Silos & Flour Mills Organization, on behalf of Dr. Fahd bin Abdulrahman Balghunaim, Saudi Minister of Agriculture. The show was attended by high-ranking agriculture officials, major producers, equipment manufacturers, dealers, agents and distributors, as well as agriculture and food industry experts from the world over. SABIC’s pavilion at the entrance to the exhibition included a large digital screen displaying messages that projected the company’s status as a leading global industry player. The SABIC presence at the event was represented by the Fertilizers SBU, and the team was headed by Fahad Al-Sheaibi, SABIC Executive Vice President, Fertilizers. Several general managers from the SBU also attended the event. The annual show is held under the patronage and support of the Saudi Ministry of Agriculture. SABIC has traditionally been a major supporter and participant in this leading agriculture show in the region. The show is accredited by UFI, the Global Association of the Exhibition Industry. The Saudi Agro-Food 2011 exhibition ran concurrently with Saudi Agriculture 2011. with our commitment to inclusive development and growth for the nation, SABIC has been stepping up its efforts to drive technology development, innovation, local partnerships, and enhance the skills of our workforce.” The three key areas where SABIC has been a keen supporter and will remain so in the 12th Five Year Plan are: Commitment to inclusive development, nurturing new industries and helping industries move up the value chain. SABIC believes that it has an important role to play in support of inclusive economic growth and development across the world. SABIC provides key ingredients for the creation of products across multiple industries. Its commitment to innovation and customer focus will help drive new possibilities for China’s seven priority industries – new energy, energy conservation & environmental protection, biotechnology, new materials, new IT, high-end equipment manufacturing, and clean energy vehicles. SABIC’s focus on research will enable its manufacturing customers to innovate and accelerate their progression up the manufacturing value chain. Its commitment to building successful partnerships with local petrochemical producers such as Sinopec also enables the transfer of worldclass research and manufacturing petrochemical capabilities to China. November/December 2011 SABIC 25 Exhibitions & conferences SABIC at Aircraft Interiors Expo 2011 High-end thermoplastic solutions serve aviation industry needs SABIC’s leadership in the development of highperformance thermoplastic solutions that help aviation customers reduce weight and cost, enhance safety and sustainability and optimize the flying experience was amply displayed at the September Aircraft Interiors Expo in Seattle, US. The SABIC stand at the event once again demonstrated that SABIC’s unmatched expertise and global resources are enabling aircraft OEMs to meet current and future challenges. SABIC’s Innovative Plastics SBU displayed its extensive portfolio of resin, sheet, foam and composite technologies at the show. These products and technologies are playing a key role in conserving fuel and lowering emissions; they meet increasingly stringent flame-smoke-toxicity (FST) regulations and enhance the comfort and aesthetics of the cabin environment. SABIC displayed a diverse number of game-changing interior aircraft applications at its booth including: • Crystal Cabin’s award-winning ultra-light inflight trolley from LSG Sky Chef and Norduyn featuring ultraviolet (UV)-resistant Ultem* resin for the extrusion profiles and door latch, and tough Noryl* resin for the frame and other components; • A passenger service unit engineered and supplied by PECO Manufacturing for the new 26 SABIC November/December 2011 Boeing 737 BSI using Lexan* FST and Ultem resins; • New seat cladding, window pane and trim parts from C&D Zodiac Aerospace using Lexan XHR sheet; • Crane Thermoplastic Composite Aerospace Boards (CAB) molded from Ultem resin and used for sidewalls, cockpit panels, ceiling panels, door liners and dividers; • Seat-padding, cushion and fire-blocker products from National Non-Wovens, using Ultem resin; and • Tray table arms that demonstrate successful replacement of aluminum with LNP* Thermocomp* specialty compound. below SABIC staff interact with visitors at the Aircraft Interiors Expo 2011 in Seattle, US Opposite left New aircraft seating for Carribean Airlines’ “Armonia” Interiors using Lexan* XHR Sheet Opposite right Passenger Service Unit engineered and manufactured by PECO Manufacturing for the new Boeing 737 BSI, molded from Lexan* FST and Ultem* Resins “The dynamic nature of the aviation industry demands flexible high-end solutions that can address multiple challenges, including the ever-present need to control costs,” said Jack Govers, General Manager, Specialty Film & Sheet, Innovative Plastics. “Our continued investment in innovative material technologies, together with our commitment to closely collaborate with aerospace customers, underscores SABIC’s leadership in developing space-age thermoplastic materials for next generation aircraft.” WEIGHT REDUCTION According to Enviro.aero, an initiative of the commercial aviation industry body Air Transport Action Group (ATAG), an aircraft will burn an average of about 0.03 kg (.06 lbs) of fuel per hour for each kilogram (2.2 lbs) carried on board. Given that the total commercial fleet flies approximately 57 million hours per year, cutting one kilogram per flight would save roughly 1,700 tons of fuel and 5,400 tons of carbon dioxide (CO2) per year. (Geneva-based ATAG is a global association that represents all sectors of the air transport industry, and its mission is to promote aviation’s sustainable growth for the benefit of global society.) SABIC’s high-performance, lightweight materials for aircraft interiors can make a significant contribution to fuel economy and emissions reduction. For example, using Lexan F6000 polycarbonate (PC) sheet to replace traditional polyvinyl chloride (PVC)/acrylic products on seating frames, an airline could reduce weight by approximately 23 percent, which is 80 kg (176 lbs) based on a plane with 190 seats. SABIC’s new LNP Thermocomp* EC006PXQ and EC008PXQ specialty compounds are respectively 30 and 40 percent carbon-filled materials that Exhibitions & conferences are based on Ultem polyetherimide (PEI) resin technology. They provide exceptional stiffness and flow, which allows for the production of highperformance, thin-wall molded parts to replace airline grade die-cast aluminum in structural components, resulting in major weight savings and an increase in strength of up to 40 percent. SABIC recently completed a proof-of-concept study further validating the performance of these two specialty compounds in aircraft food tray arms and found that the materials – together with an optimized design – reduced part weight by up to 46 percent and cut costs by up to 77 percent vs. aluminum components. Other potential applications include structural supports, arm rests, foot rests, and galley applications such as coffee maker chassis. Also capitalizing on SABIC’s PEI resin technology, Ultem foam is a rigid, open-cell core material that is 10 to 20 times lighter than traditional plastic components. It is an excellent choice as a core material for composite applications requiring noise abatement, low moisture absorption, high thermal properties and compatibility with thermoset and metal laminates. Another high-tech SABIC product – Lexan XHR (extremely low heat release) 6000 sheet provides superior weight-out of up to 12 percent against traditional PVC/polymethyl-methacrylate (PMMA) products for better fuel economy. Geven S.p.A., a leading aircraft seating and interior solution provider, has chosen Lexan XHR sheet for their new aircraft seating for Carribean Airlines’ “Armonia” interiors, designed by Giugiaro. The challenging goal of limiting the seat weight to a maximum of 9 kg (19.8 lbs) persuaded Geven to select the high-performance SABIC material. STRINGENT STANDARDS SABIC’s high-end thermoplastic products also provide a host of other benefits for global aircraft designers ranging from long, useful life to regulatory compliance. Using these materials can help OEMs provide maximum comfort and appeal for passengers while ensuring a high level of safety and controlling costs. Transparent Lexan F2000A sheet offers excellent FST performance and impact strength, and complies with FAR 25.853 and ABD0031 requirements (FAR 25.853 is FAA [Federal Aviation Administration, US] regulation related to flame, smoke, heat release and ABD0031 is toxicity requirement of Airbus) at 2 mm and 3 mm, respectively. It is an ideal candidate for windows, light diffusers and signs where clarity is requested. Lexan F2000A sheet provides environmentally responsible flame retardance according to DIN/VDE 0472 part 815 standard. Extem* UP thermoplastic polyimide (TPI) resins are flame-retardant, extreme high-heat materials that meet UL 746B requirements at a relative thermal index (RTI) of 240 C, indicating retention of certain mechanical and electrical properties at this temperature over a 10-year period. Extem UP resins also offer up to five times greater flex strength and up to five times higher stiffness than unfilled polyetheretherketone (PEEK) at 200° C. They provide a coefficient of thermal expansion (CTE) of up to 30 percent lower than unfilled PEEK. Ultem CAB sheets, co-developed and manufactured with Crane & Co., provide a superior alternative to thermoset aramid fiber-reinforced honeycomb composites. The Ultem CAB sheets can be quickly thermoformed, offer a broad range of high-performance properties, are recyclable and offer great potential to be refurbished with a newly developed decorative film layer to extend useful life while still meeting Federal Aviation Administration (FAA) requirements. Building upon Ultem resin’s proven capabilities for aircraft interiors, carbon-fiber-filled Ultem resin complies with FAR 25.853 and the smoke density and heat release requirements of the Ohio State University (OSU) standard 65/65. Ultem foam can be used as part of a composite system with a decorative film or surface layer such as phenolic prepreg or metal. Potential applications for transportation include flooring, sidewalls and ceiling panels. Processes such as machining, vacuum bagging, compression molding and thermoforming can be utilized with Ultem foam for potential system cost savings. * Trademarks of SABIC Innovative Plastics IP B.V. “Our continued investment in innovative material technologies, together with our commitment to closely collaborate with aerospace customers, underscores SABIC’s leadership in developing space-age thermoplastic materials for next generation aircraft” Jack Govers, General Manager, Specialty Film & Sheet, Innovative Plastics November/December 2011 SABIC 27 STIM 2012 The STIM event has evolved considerably over the years as a genuine SABIC-wide collaborative effort that offers a unique opportunity for scientists, researchers, chemists, engineers and technical experts to network and build on their knowledge and experience. The theme of STIM-10, to be held in Jubail Industrial City from November 12 to 14 2012, is “Innovations that matter”. STIM, which has served as a biennial SABIC event to share knowledge and best practices, will now become an additional internal platform to advance the company’s ‘culture of innovation’. The event is designed to enable SABIC’s experts to network, present their innovation efforts and share success stories, contributing to a global culture of innovation. Ernesto Occhiello, SABIC’s Executive Vice President, Technology and Innovation, who is also the Chairman of STIM-10 Steering Committee, recently announced the theme of the 2012 event. He reiterated SABIC’s determination to make Innovation integral to the company’s positioning. “It is our key driver for sustaining SABIC excellence,” he said. STMs, the predecessor of STIM, had built a solid reputation for enabling SABIC’s technical staff, including research scientists as well as plant operations and technical managers, to tap into a pool of hands-on knowledge and experience. The event was created to enable SABIC’s multiple manufacturing facilities and businesses to leverage theoretical and practical knowledge related to manufacturing as well as research and development. Originally, STM was primarily intended to enable SABIC’s multiple manufacturing affiliates in Saudi Arabia to share their technical expertise and experiences. With the integration of overseas facilities and businesses into the new global SABIC, the scope of STIM has grown enormously, in terms of size, participation and the diversity of topics. The STIM-10 Steering Committee is striving to provide that global flavor and strengthen the 28 SABIC November/December 2011 Countdown to STIM-10 The 10th edition of what has been hitherto known as STM (SABIC Technical Meeting) will be held in November 2012 under the new event name of STIM (SABIC Technical and Innovation Meeting). The name change highlights the importance of Innovation for SABIC BELOW STIM-10 KICK-OFF MEeTING WITH DR AL-UBAID experience of participants at the 2012 edition of the event. “We have a wealth of professional talents to draw from, and we are assured of the strong commitment of the organizing teams as well as full support from SABIC management,” says Occhiello. Occhiello assumed responsibility as the EVP Technology & Innovation and Chairman of Steering Committee earlier this year, and has taken the challenge of ensuring STIM’s success very seriously. STIM planning was a key item on his agenda when he visited Jubail in August and held discussions with Hassan Al-Ghannam, President of HADEED and STIM10 Vice Chairman. They reviewed the preparations for the event and various activities of the teams involved, and expressed their appreciation of the team efforts. The planning and preparations for STIM-10 got well underway in March this year when the Steering Committee held its kick-off meeting at the HADEED beach camp in Jubail. The assembly was hosted by Dr. Abdulrahman Al-Ubaid, then EVP, Technology & Innovation as Chairman and Al-Ghannam. The meeting also had representatives and leads of the various organizing committees who pledged to work hard to ensure that STIM-10 would be a resounding success. In May, Al-Ghannam hosted a brainstorming session for all STIM organizing committees where the focus was on generating creative ideas that would make the event different, interesting and valuable for participants. Here again, the collaborative approach of the teams won the day, with cross-team brainstorming helping to generate new ideas. The ideas pool was captured and translated into a database for further processing by the respective teams. STIM 2012 LEFT AL-GHANNAm LEADING THE EVENT PLANNING SESSION WITH TEAM LEADS A SABIC global contest was held in June to decide on the theme of the event. The competition guidelines asked SABIC staff to consider the company’s core values – Inspire, Engage, Create and Deliver – along with the motto of “Culture of Innovation” and the principle of collaborative working while coming up with proposed themes. The first meeting of the “affiliate focal points” in Saudi Arabia in June was another key milestone in the preparations. The affiliate focal points – representatives from SABIC affiliates in Saudi Arabia – held a kick-off meeting on June 15, which was inaugurated by Ali Al Beed, Technical Team leader. He explained the objectives of the meeting and key project milestones for the team’s activities. Dr. Abdullah Al Refaie, member of the Innovation Team, highlighted the importance of Innovation at the 2012 event, and Yousef Al Saleh, Communication & Publicity Team Leader, explained the communication strategy for the event. The global invite from the Technical Committee to SABIC employees to share their knowledge, experience, and innovative achievements at the event went out on June 26. Staff were encouraged to submit paper abstracts under six main topics: Technology Development & Improvement (Product/ Process); Plant Reliability Management; Electrical & Control Systems; Sustainability, Environment Protection, Safety and Health; Quality Assurance & Analytical Technology; and Business Development, Management, Quality Systems, and Information Technology. The collaborative spirit of STIM has been evident at the several preparatory meetings held over the past months. On October 1, the affiliate focal points met at the SABIC Technology Center in Jubail for a drill down session on innovation, success story nominations and the importance of keeping confidentiality. Dr. Joachim Von Heimburg, General Manager, Innovation & Corporate Programs and member of the STIM Innovation Committee, shared SABIC’s strategy to make Innovation the key to attaining business growth and strengthen competitiveness in the global industry. Dr. Abdullah Al Refaie, of the innovation team, explained to the participants the new trend in STIM-10 of making room for success stories from within SABIC. Abdullah Awwad of Technology and Innovation walked the participants through the process of ensuring confidentiality of information and associated legal aspects. As the various STIM teams continue to work hard on their assignments, the progress achieved so far point to a significantly improved and value-added event in 2012. STIM organizing teams are elated about the response to the invitation for abstracts. By September 27, the deadline set to receive the abstracts, a total of 2186 submissions were received for STIM-10 as against 1327 for STM-9. In terms of the number of submissions under each topic, Plant Reliability Management tops the list, closely followed by Process Product and Technology below Occhiello (center) with with STC- Jubail management and Sustainability, during his visit to Jubail Environment Protection, far below FULL TEAM CREATIVE IDEAS BRAINSTORMING SESSION Safety and Health. “We have a wealth of professional talents to draw from, and we are assured of the strong commitment of the organizing teams as well as full support from SABIC management” Ernesto Occhiello, SABIC’s Executive Vice President, Technology and Innovation November/December 2011 SABIC 29 sustainability Life Cycle Analysis confirms key benefits of SABIC’s steel products right The Lifecycle Analysis has highlighted the sustainability strengths of HADEED’s steel production, from the raw material extraction phase right up to the point of delivery to the distributor As part of SABIC’s Sustainability Program, the Metals Strategic Business Unit (SBU) has completed a rigorous Life Cycle Assessment (LCA) of the 10 main product lines at the HADEED (Saudi Iron and Steel Company) complex. Environmental data collected from all key processes indicate that SABIC’s steel products have lesser carbon dioxide emission and energy consumption, compared with similar products manufactured using alternative routes. After completing the analysis earlier this year, the Metals SBU will now obtain third-party verification and certification of their results, in accordance with ISO guidelines. The third party verification is expected to be completed by the end of 2011. The company’s business teams will also share these results with customers who are keen to advance sustainability goals, making way to forge strong partnerships to work together on improving the sustainability performance of products and businesses. LCA is a rigorous process used to measure the environmental footprint of products including 30 SABIC November/December 2011 the extent of greenhouse gases emitted and the energy used at each stage of a product’s life. Typically LCAs start with raw material extraction and continue through materials processing and manufacture. The LCA also may continue through the distribution, use phase, disposal or recycling. The Metals SBU’s LCA was conducted for the raw material extraction phase through to delivery of the products to the distributor. Hamad Al-Tassan, General Manager - Technology Management (Metals SBU), explains: “This was a real team effort involving representatives from diverse functions such as the Metals SBU Technology Management, Sustainability Core Team at HADEED and SABIC Technology Centers of Jubail and Bangalore, completing extensive work to measure every key process and analyzing the sustainability impact to calculate the total environmental footprint. “We also completed a thorough competitive study. The results were very positive. We found that our manufacturing processes – which make the sustainability “We now can see our results that show SABIC steel products can meet the sustainability solution and we are able to produce greener steel” Hamad Al-Tassan, General Manager - Technology Management (Metals SBU) use of natural gas-based Direct Reduced Iron and Electric Arc Furnaces – have a significantly lower environmental footprint than that of coal-based Blast Furnace-Basic Oxygen Furnaces process.” Elaborating on other benefits of conducting the assessment, Al-Tassan says: “The LCA tells us where our internal big energy consumers and CO2 emission sources are. It enables us to identify potential low hanging fruits to make quick sustainability gains. This will have a good impact on the business, because when we save natural gas or electricity or reduce emissions, we are increasing the efficiency of the plant, saving money and making a payback.” Within the flat steel market in the region, most of SABIC competitors are providing products made from blast furnaces. The Metals SBU will seek to leverage the distinct sustainability advantages offered by SABIC’s DRI and EAF processes. “In the past, we have not seen a lot of pull from the market for this distinct advantage, but when we approach individual customers, things might look different given the growing demand globally for more sustainable solutions,” explains Al-Tassan. “Everyone at the HADEED site and within the Metals SBU is proud because we now can see our results that show SABIC steel products can meet the sustainability solution and we are able to produce greener steel”. HADEED, wholly owned by SABIC, is one of the largest integrated steel manufacturers in the world, producing steel rebar, wire rod, steel sections and flat steel. The main HADEED complex is located in Jubail. The company was established in 1979, came on stream in 1983 and has undertaken several expansion projects since then. LEFT from top A night shot of the HADEED complex in Jubail; steel rolls inside the plant; steel rods produced at HADEED November/December 2011 SABIC 31 LOgistics ADS takes supply chain efficiency to a new level Adaptive Dynamic Sourcing (ADS), a project that resulted in a hybrid supply chain management model for distributing millions of tons of polymers every year to customers in Europe, was born out of SABIC’s focus on the customer. The project recently won the 2011 Netherlands Logistics Award from the country’s Logistics Management Association SABIC’s Supply Chain Polymers Europe division is responsible for the logistics handling of several millions of tons of polymers, mainly polyethylenes (PE) and polypropylenes (PP). Four European production plants, imports from SABIC’s plants in Saudi Arabia and a network of distribution sites are involved in meeting customer demand. Around twothirds of the volume is transported in bulk, while the remaining third is packed in bags on pallets. Thus transportation is a key factor in logistics, both in terms of imports and the dispatch of products to customers from European production sites and distribution centers. The majority of the products have a low value density, with transport costs representing a large proportion of the total cost. For economic reasons, products are therefore only delivered by road transport to customers within a radius of approximately 600 km (also on account of the short lead times to customers). Key drivers SABIC’s transportation strategy is built on several principles: safety, security (guaranteed transport capacity), reliability (full compliance with the agreements made with customers), competitive pricing and sustainability (intermodal transport for longer distances). Erik Kessels, Manager Sourcing & Contracting Supply Chain Polymers Europe explains why ADS was developed: “In 2005, several factors prompted SABIC to introduce ADS. These included the transformation of the company’s supply chain from a network into a more sophisticated model to manage larger volumes, the prospect of a doubling of demand and the corresponding increase in transportation costs and the rise in imports.” There were other reasons too. Logistics service providers were rapidly growing in size and adopting 32 SABIC November/December 2011 newer and more modern ways of managing business, expanding the scope of closer cooperation. At the time, transportation was mostly planned on a reactive basis and often resulted in an imbalance between the desired customer service and low-cost provision of logistics services. The administration involved in transport necessitated a great deal of manual work, both for SABIC and the logistics service providers. This meant that the workforce needed to grow in line with the transport volumes. Besides, transportation costs kept rising in a shrinking transport market. Says Kessels : “ADS process was conceived to guarantee transport capacity to meet the anticipated increase in the volume of European orders. The central idea was to create a system that would proactively inform hauliers about expected transport requirements over a period of time, ensuring that 80 percent of the order stream is executed without interruption.” Four elements ADS consists of four basic elements that have added tremendously to the efficiency of the supply chain: tendering on an annual basis, tendering in the interim on the basis of Transport Requirements Planning, Loading monitor and xRFQ, which is an e-bidding tool for ad hoc sourcing. Communication between all the functions in ADS takes place entirely via a web portal. Nearly 90 percent of the volume is shipped via a System to System (S2S) connection. The portal serves as a back-up should the S2S connection fail, and also for the remaining 10 percent of the mostly smaller hauliers for whom an S2S connection has currently not yet been implemented. The processes for planning, transport orders, LOgistics FROM LEFT Bemelmans, Mieke Damen (Chairman, Association of Logistics Management), Jhr. dr. Walther Ploos van Amstel (Jury Chairman) and Kessels loading and unloading sites, up-to-date loading and unloading information (track and trace), transported weights and invoicing are carried out in a paperless and contact-less manner. In 2011, ADS included the entire plan-do-check-act cycle. Raf Bemelmans, Director Supply Chain Polymers Europe at SABIC, says that the unique advantage of ADS is that it integrates the planning process for sales, production and transportation into one magnified process. “There is no other integrated and automated system with this endto-end scope as far as we know. Under this system, we integrate our planning with hauliers’ planning incorporating all stages of the supply chain process including customer orders and shipments,” he explains. “It is of utmost importance that we organize order entry and shipment call-off hand-inhand with transport contracting.” Jury’s praise In its award citation, the jury described ADS as an inspiring example of mutually successful collaboration between a shipper and logistics service providers, during which planning information is shared proactively and operational processes are paperless and controlled. It said the project sets an example for transport-intensive businesses in the chemical sector, but also applicable for construction products, foods, container transport and agro-logistics. During the assessment process, the jury spoke to some of the logistics service providers involved. These service providers were unanimous in their enthusiasm for the project and their collaboration with SABIC. They cited proactive capacity planning based on predictions, and paperless processes as key advantages. The jury noted that by organizing so-called ‘haulier days’, SABIC actively involves service providers in finding solutions for key issues such as safety, sustainability, loading and unloading, preventing empty kilometres and capacity planning. In its final report, the jury concluded: “Supplying products promptly and most of all at low costs is one of the success factors for the chemical sector. SABIC shows how this can be realized in practice. Supply chain management has clearly been taken to a higher level at SABIC and makes a strategic contribution to the company’s success. “Summarising, the combination of the four elements of Adaptive Dynamic Sourcing in European distribution (tendering on an annual basis, tendering in the interim on the basis of Transport Requirements Planning, Loading monitor and xRFQ) is of immense added value for SABIC. SABIC has achieved demonstrable benefits; lower costs and a higher level of service.” Says Bemelmans: “This award is not only recognition of our state-of-the-art sourcing process for transportation, but also of 10 years of process optimization and automation. It allows us to guarantee high service levels to customers by securing transportation in a volatile market.” The Dutch Logistics Award, a silver sculpture with certificate, was presented by the Chairman of the Jury, Walther Ploos van Amstel Esq., in Amsterdam on November 3. The annual award is given by the country’s Logistics Management Association to honor innovative projects and extraordinary performance in logistics. The Association aims to encourage innovation and professionalism, and says the awarded business must be a source of inspiration and serve as an example to other businesses. “This award is not only recognition of our state-ofthe-art sourcing process for transportation, but also of 10 years of process optimization and automation” Raf Bemelmans, Director Supply Chain Polymers Europe at SABIC November/December 2011 SABIC 33 Cover Story Nurturing talent, grooming leaders The SABIC Academy adds new meaning to the corporate emphasis on leveraging global Learning and Development to support talent acquisition and retention 34 SABIC November/December 2011 Cover Story November/December 2011 SABIC 35 Cover Story H Above Mohamed Al-Mady, SABIC Vice Chairman and CEO, poses with the SABIC Academy team and participants at the launch of the first Executive MBA program at the Academy “Our teams can be proud of this achievement. SABIC’s HRD has evolved considerably over recent years to meet the challenges of growth as a global company and to support the vital elements of corporate strategy. The Academy will support this evolution in a big way” Mohamed Al-Mady, Vice Chairman and CEO, SABIC uman Resource Development (HRD) is one of the most important pillars of modern corporate strategy and competitiveness. The reason is quite simple and straightforward: in a highly competitive world, the company needs highly competitive people and visionary leaders. But then, beyond that simple statement, modern HRD is about talent acquisition, talent retention and grooming the leaders of tomorrow on a wider scale, and what companies can do to achieve these key objectives. Gone are the days when HR was merely a recruiting, benefits and training function. Today’s corporate HRD typically strives to live up to the literal sense of the term, and goes much beyond providing routine on-the-job training and sponsored scholarships to include an ambitious agenda of Learning and Development (L&D). The essential purposes of corporate L&D are to groom leaders, provide continuous education and training to staff in line with a company’s business strategy and to enable it to meet the rapidly changing marketplace requirements and emerging challenges. The just-constructed SABIC Academy complex at the corporate headquarters in Riyadh is a historic milestone in implementing SABIC’s ambitious HR and L&D agenda. By virtue of the vital role of human resources in strengthening and sustaining the company’s competitiveness, the Academy’s completion is also a key turning point in SABIC’s journey towards Vision 2020. SABIC has traditionally laid considerable emphasis on learning and training, especially in 36 SABIC November/December 2011 the context of being a Saudi company pursuing nationalization of its workforce at its home base. As Saudi Arabia leapfrogged from being a remote desert nation to a modern and rapidly developing nation, the national government has over the decades emphasized the need to encourage learning, training and employment of nationals. SABIC’s transition into a global company and the demands of a diversified international business have dramatically changed the company’s HRD landscape and priorities over the past decade. While the emphasis on nationalization continues at home as a national commitment, the scope and objectives of corporate L&D function has grown substantially to meet the local, regional and global challenges of the new SABIC as it races to become the world’s preferred chemicals supplier. PROUD ACHIEVEMENT Mohamed Al-Mady, SABIC’s Vice Chairman and CEO, describes the SABIC Academy as yet another important milestone in SABIC’s journey towards excellence. “Our teams can be proud of this achievement. SABIC’s HRD has evolved considerably over recent years to meet the challenges of growth as a global company and to support the vital elements of corporate strategy. The Academy will support this evolution in a big way,” he says. Yousef Al-Benyan, SABIC’s Executive Vice President, Human Resources, says that the company is very proud of its new Academy and the global L&D program. “HRD is at the center of SABIC’s corporate strategy, and our key long-term role is that of an enabler to help our businesses have the right resources. There are many ways of doing Cover Story This page: An inside view of the complex, which hosts well-equipped conference halls, class rooms and computer labs November/December 2011 SABIC 37 Cover Story this, and global L&D will play an important and integral role in enabling businesses by bringing in the most appropriate people development and training programs,” says Al-Benyan. “Leadership development is of course one important objective, but the Academy and L&D are much more than that. Our emphasis is on equipping the businesses with the talent, skills and knowledge that they need on an ongoing basis to remain globally competitive,” adds Al-Benyan. Al-Benyan asserts that today’s SABIC L&D is an agile and adaptive organization whose objective is to serve all four regions of global SABIC: Asia Pacific, Middle East and Africa, Europe and Americas. The organization consists of Regional Learning Leaders (RLLs) and functional Learning Product Leaders (LPLs) who work closely to respond to each region’s needs. “Leadership development is of course one important objective, but the Academy and L&D are much more than that. Our emphasis is on equipping the businesses with the talent, skills and knowledge that they need on an ongoing basis to remain globally competitive” Yousef Al-Benyan, EVP, Human Resources THE ACADEMY COMPLEX The SABIC Academy is a state-of-the-art education and training complex located at the headquarters in Riyadh. The complex boasts a mix of large conference rooms, small breakout rooms, medium and small-size class rooms and discussion rooms. It is equipped with advanced video conferencing and ‘live’ meeting facilities, computer lab and interactive white boards. The Academy building will host the offices of over 25 staff who make up the L&D. The Academy building will be primarily used for a wide variety of learning programs including assessments, workshops, summits and training classes. Abdullah S Al-Alweet is SABIC’s Chief Learning Officer (CLO), Learning & Development Center of Excellence (CoE). He says SABIC L&D is focused on providing competence-based learning to enable leadership development. “Our vision and programs are geared to supporting employee learning and development at both functional and leadership levels. We care about developing SABIC people’s capabilities and skills and we want to help them grow and achieve their ambitions,” he explains. Al-Alweet says that the Academy and L&D CoE will play a key role in promoting learning across SABIC global, and strengthen the company further as a learning organization. “We intend to achieve all these objectives by bringing in best-in-class practices and learning to the SABIC Academy, which will play a vital role in managing the concept of learning intervention to enhance business objectives. A top-quality L&D program will go a long way in attracting and retaining talent,” adds Al-Alweet. SABIC L&D also aims to open its doors to help with national leadership development goals. This would be done by inviting government leaders to attend selected SABIC L&D programs that are relevant for the wider community. 38 SABIC November/December 2011 BUSINESS NEEDS While people are at the center of L&D’s vision and activities, it must be remembered that its strategy and program content are driven by business needs. The ultimate aim of the L&D function is to create and sustain a learning organization within SABIC that will strengthen the business competitiveness and performance of the company. Salah Suood Al-Eissa, SABIC’s Global Learning Manager, Technical, Learning & Development CoE, says the L&D provides guidance, the necessary tools and support for staff to strengthen their learning and capabilities. The department strives to remain knowledgeable and up-to-date about SABIC’s businesses and industry management trends so that it can effectively respond to current and emerging competency needs of the people who are involved in running those businesses. “We offer an integrated, interactive and progressive learning system. By integrated, we mean that L&D enables comprehensive learning using multiple channels and formats. It is interactive and progressive because our programs are constantly evolving and improving in content, and we are committed to implementing positive changes over time to respond to the needs of the organization and business,” he says. L&D PROGRAMS SABIC has a come a long way in building a collaborative and internationally effective L&D program. With major acquisitions happening in different parts of the world over the past decade (DSM, Huntsman and GE Plastics), the organization’s learning, training and development scenario had to undergo significant churning to produce a new structure and new sets of guidelines for global SABIC. When eventually the SABIC Leadership and Core Business Skills programs were rolled out worldwide in late 2009, it involved internal and external partners who brought the necessary expertise. Internally, the program relies on experts from various functions while externally, it partners with leading international business schools. The renowned global institutions that SABIC L&D has partnered with include the London Business School, Babson Executive Education, Center for Creative Leadership and Thunderbird School of Global Management. SABIC has already begun running learning and development programs with these institutions. The global curriculum guide lists dozens of courses that are currently organized in five distinct portfolios: Executive, Leadership, Core Business Skills, Technical, Sales and Marketing, and Supply Chain. The curriculum and programs are drawn up in a way that helps SABIC people Cover Story ABOVE Al-Alweet addressing a ‘Culture Matters’ session conducted by L&D in Singapore at all levels in all businesses sharpen their skills and knowledge to grow within the company. Culture Matters, Looking Glass, Leading A Team and Experienced Leaders are examples of effective programs that are being implemented by SABIC L&D. Culture Matters is an initiative to build on global SABIC’s cultural diversity while recognizing cultural differences; the other three are leadership development programs that are designed for an international workforce. The programs are conceived and structured in a way that enables incorporation of feedback from participants as well as global networking opportunities and cross-functional and cross-cultural learning. The Global Corporate Leadership Curriculum is now implemented across all regions to ensure consistency and uniformity of learning content and delivery. The programs are not limited to management, but extend to technical and highly specialized fields. For example, the Process Engineering Development program enabled over 350 professionals in SABIC strengthen their technical competencies. Similarly, Finance simulation, a finance training program using new technology and conducted entirely online has also enabled SABIC professionals to share their knowledge and strengthen professional skills. LEARNING PORTAL Internal collaboration is a key element in the L&D strategy, which has developed a Web 2.0-based learning portal that facilitates two- “We care about developing SABIC people’s capabilities and skills and we want to help them grow and achieve their ambitions” Abdullah S Al-Alweet, SABIC’s Chief Learning Officer (CLO), Learning & Development Center of Excellence (CoE) way communication. Eventually, the portal will become a hub of collaborative informal learning for SABIC staff around the world. The portal will support the L&D’s “SABIC teach SABIC” approach that encourages knowledge sharing among experienced managers and professionals. The programs also include effective e-learning modules that supplement face-to-face instructor-led sessions. L&D will effectively use technology – mobile, wiki and blogs – to allow staff worldwide to learn from anywhere and everywhere according to their needs. Al-Alweet explains that SABIC’s is a truly global Learning Management System that enables the whole organization to have access to a common knowledge pool and harmonize the process of learning across the world. The system is equipped to constantly make adjustments and improvements, and redefine programs based either on participant feedback or on new information and technology that become available every now and then. The SABIC Academy symbolizes SABIC’s total commitment to grooming talent and skills. According to management consultancy firm McKinsey, “the war for talent” among global companies is far from over. As the ‘knowledge worker’ continues to hold the key to competitiveness, and as long as there are not enough of talent for competing companies around the world, that ‘war’ will continue. SABIC leaders are hoping that the Academy and L&D, along with the host of other corporate programs and policies, will provide SABIC the vital edge in acquiring and retaining talent. November/December 2011 SABIC 39 Corporate Social Responsibility SABIC-funded Autism Research Center launched in Riyadh institutions having long experience in academia and An Autism Research Center funded with SR 45 research, particularly in the field of autism research, million grant provided by SABIC was launched at will help acquire knowledge and provide support for the King Faisal Specialist Hospital and Research autistic children and their families in Saudi Arabia. Center (KFSH&RC) in Riyadh on September 27. The Autism Research Center aims at improving The KFSH&RC also signed two agreements on the local diagnostic and rehabilitation capabilities. It same day with the University of North Carolina will review the methods and outreach programs and Autism Speaks Center, both based in the for autistic children and their application in United States, to conduct autism research. the Saudi environment to strengthen the Prince Saud bin Abdullah bin Thenayan Al-Saud, skills of people working in the field. It will Chairman of SABIC and the Royal Commission for also offer rehabilitation training and develop Jubail and Yanbu, said that the Autism Research rehabilitation programs for autism centers across Center is a major milestone in SABIC’s Corporate the country. The Center will coordinate with Social Responsibility (CSR) program. SABIC considers universities and specialized centers in Saudi social responsibility as a long-term investment. Arabia to establish close cooperative relations He said SABIC hopes that the Autism Research in education, training, research and services. Center in Riyadh would become the world’s leading KFSHRC, which has considerable experience institution in the field, offering new knowledge in the diagnosis and care of autism cases in the and high-standard rehabilitative services. country, seeks to become more Dr. Qasim Al-Ghasabi, KFSH&RC active in autism research locally, General Executive Supervisor, thanked below Prince Saud (center), Dr. Al Qasabi (right) and Dr. regionally and globally, he said. Prince Saud and SABIC for their Sameul Odom (left) of the He noted that the hospital had University of North Carolina support to the center and other at the announcement of the diagnosed the first case of autism in community programs. He said that SABIC-funded Autism Research Center in Riyadh the country more than 20 years ago. the agreement with the two US 40 SABIC November/December 2011 Corporate Social Responsibility Above Prince Sultan with Prince Saud, Al-Mady and other SABIC executives at the check handover ceremony ‘Pay Every Month’ for Disabled Children’s Association Prince Sultan bin Salman bin Abdulaziz Al-Saud, Chairman of the Saudi Commission for Tourism and Antiquities and Chairman of the Disabled Children’s Association (DCA), visited SABIC headquarters in Riyadh on September 25. Prince Sultan symbolically presented the donations from SABIC employees under the ‘Pay Every Month’ initiative, to Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz in celebration of the Saudi National Day (September 23). Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, received Prince Sultan. Mohamed Al-Mady, SABIC Vice Chairman and CEO, the company’s executive vice presidents, and DCA officials and children attended the reception. Prince Saud lauded Prince Sultan’s encouragement to several charitable associations, and his strong support to the DCA programs, setting a clear vision for the association to pursue over the next 20 years. He praised Prince Sultan’s role in extending DCA services to most regions of Saudi Arabia, and building strategic partnerships with organizations in diverse sectors. SABIC has responded to these initiatives as part of its commitment to social responsibility, he said. Prince Saud expressed his sincere appreciation to Prince Sultan for encouraging the ‘Pay Every Month’ initiative of SABIC employees, who have set a good example for others to follow. He thanked SABIC employees and the CEO for their response to the ‘Pay Every Month’ initiative. SABIC’s relations with the association dates back to the years when the company began participating in the ‘Pay Every Month’ initiative. Under the initiative, the participating employee agrees to have a fixed sum deducted from their monthly salary to support the association. Prince Sultan thanked SABIC employees for supporting the ‘Pay Every Month’ program, which was launched in January, 2008. Over the past three years, a total of SR 1,454,179 has been collected. Above Prince Saud receives a memento from the ADHD Support Society ADHD Society thanks SABIC for support Prince Saud bin Abdullah bin Thenayan Al-Saud, Chairman of SABIC and the Royal Commission for Jubail and Yanbu, and Mohamed Al-Mady, Vice Chairman and CEO, received a delegation from Saudi Arabia’s ADHD (Attention Deficit Hyperactivity Disorder) Support Society on September 25 at the SABIC headquarters in Riyadh. The representatives of the Society expressed their appreciation of SABIC’s continuous support. They also noted SABIC’s prominent role in serving the community and caring for the younger generation by supporting research and helping to raise awareness about diseases, their prevention and treatment. The ADHD Support Society delegation included Dr. Suad Al-Yamani, Chairman of the Society, Princess Nouf Mohammed bin Abdullah AlSaud, Vice Chairman of the Society, Princess Madawi Saad bin Khalid Al-Saud, Board member, and Munira Khaled Al-Sudairi, Chairman of the Society Development Committee. Senior SABIC officials also attended the meeting. Prince Saud lauded the Society for its voluntary activities in the Kingdom and its role in raising awareness about ADHD. He noted that the Society has been using all available means to educate people and invite specialists to shed more light on the disorder. He said 15 percent of the population in Saudi Arabia suffer from ADHD, which is three times more than the global average. November/December 2011 SABIC 41 success story Flux Chair made from SABIC polypropylene is a seating hit 42 SABIC November/December 2011 success story If there is one product that has made waves recently in Europe’s modern furniture market, it is the Flux® Chair. The foldable and easily portable chair, which has taken the design world by storm and won several awards, bases its simplicity on a single-part, single-material approach. And that single material is SABIC’s polypropylene (PP). Flux Furniture B.V. selected the SABIC® PP PHC series of impact block copolymers to mold the complex, hinged part that unfolds from a flat package into an attractive, comfortable and highly practical chair. The Flux chair design was inspired by origami, the traditional Japanese art of paper folding, which transforms a flat sheet of material into a finished sculpture primarily through folding and sculpting techniques. The company chose SABIC PP PHC series to make the chair because the high-performance material not only meets the demanding usability and aesthetic requirements of the Flux Chair, but also supports environmental goals of easy recyclability and weight reduction. The SABIC PP PHC series of impact block copolymers, featuring high impact strength, high stiffness and good flow, were the solution to a dilemma: how to produce a chair that combines flexibility for easy folding and unfolding, excellent strength (supporting up to 140 kg/300 lbs) and stiffness for stability. The materials offer an ideal blend of properties that allow thin hinges to be incorporated into the thicker, rigid chair body. Other attributes of the SABIC resin include custom colorability and an excellent surface finish for luxury aesthetics. The Flux Chair is offered in eight stylish colors: jet black, anthracite grey, classic red, bright orange, lemon lime, pebble grey, ice blue, and pure white. The product was launched at the international lifestyle fair at Maison & Objet in Paris and the Tendence in Frankfurt in August-September 2010, targeted at worldwide design chair markets. Sales of the chair have been rocketing since. Flux has won significant design Awards such as Grand Designs Product of the Year, Excellent in Product Design Award and Philips Innovation Award; earlier it had won the New Venture Award. The Flux Chair is also used in promotion campaigns partnering Mini Cooper, the Amsterdam Dance Event, British Next Top Model and SABIC. Although primarily the Flux Chair is a design chair, it is also very practical: easily foldable, easy to carry and store, easy to clean and comfortable feel. For example, 121 Flux Chairs can fit in a Mini Cooper Clubman. Thanks to the tough SABIC PP material the Flux Chair has a high durability. It can easily be folded more then 1000 times. It combines design excellence with environmental responsibility because the ease of bulk transportation helps to reduce carbon emissions and fuel consumption. According to Douwe Jacobs, co-founder and lead designer for Flux Furniture, “SABIC polypropylene helped to make our complicated product look simple. This material was the most important factor in the successful commercialization of our design. Also, the local assistance that SABIC provided was invaluable. Not only did the SABIC representative personally deliver trial samples the next day, but a technical expert worked with our injection molder to optimize the tool and processing parameters for this very large and tricky part. Based on the success of the original Flux Chair, we are creating a child’s version that also uses SABIC polypropylene.” “It was a great experience for us to work with an innovative design team on this award-winning chair, and we look forward to continuing our collaboration with Flux,” said Paul Wanrooij, Technical Marketing Engineer SABIC. “The Flux Chair epitomizes the creative use of our polypropylene technology and shows what can be achieved with a single, versatile plastic. SABIC continues to develop its SABIC PP PHC block copolymer series so that customers like Flux can find solutions to their most challenging projects.” Designers Douwe Jacobs & Tom Schouten, having graduated in 2008 from the TU Delft, The Netherlands, won in 2009 both the New Venture entrepreneurs competition and the Philips Innovation Award. The Flux Chair is the fruition of Douwe Jacobs’ graduation project. In search of inspiration for a line of folding furniture, he became fascinated by the art of paper folding. Driven by the possibility of creating elegant shapes with curved fold lines and a single flat sheet, the miniature scale models quickly found the chair’s unique form. Together with fellow student Tom Schouten, Douwe formed the company Flux Furniture. This partnership enabled them to launch the innovative product that was already patented and ready to be mass produced. Flux Furniture is located in Marcel Wanders’ Westerhuis, Amsterdam. “The Flux Chair epitomizes the creative use of our polypropylene technology and shows what can be achieved with a single, versatile plastic” Paul Wanrooij, Technical Marketing Engineer SABIC November/December 2011 SABIC 43 success story Lexan* solar shading panels offer multiple benefits at Westminster Green Campus 44 SABIC November/December 2011 success story New solar shading panels made from lightweight, durable Lexan* Exell* D polycarbonate (PC) sheet from SABIC’s Innovative Plastics strategic business unit, are making a major contribution to energy efficiency and comfort at the new flagship City of Westminster College in Central London. The high-performance panels filter out direct sunlight to minimize solar effect and glare on computer screens while at the same time allowing generous amounts of natural light. These advantages are expected to significantly reduce building energy requirements, and maintenance and lifespan costs. The City of Westminster College is another example of SABIC’s ongoing investment in environmentally responsible materials for the global building and construction industry helping customers meet their sustainability goals with new eco-progressive products. “The success of this project called for an advanced material that could deliver a combination of highperformance properties: excellent aesthetics, insulation, ultraviolet protection, flame retardance, durability and light weight,” said Simon O’Hea, Director, Colt Group Ltd. “Based on our history of working with SABIC, and after researching all our options, we recommended Lexan Exell D sheet to the architect. SABIC supplied the customized sheet with the precise balance of light transmission and heat reduction, greatly enhancing the building’s energy efficiency while adding to the striking architectural impact of the building’s design.” DESIGN FEATURES The distinctive, cantilevered building for City of Westminster College – a leading continuing education college offering over 200 vocational and academic courses to students – was designed by Schmidt Hammer Lassen architects to minimize energy usage and carbon footprint. This sustainability strategy includes full-story, vertical solar shading panels fabricated by Colt using custom-colored, translucent Lexan Exell D sheet, which flank the windows on the east and west façades. The solar shading panels, also referred to as a “brise soleil” system, are fabricated by framing 3.5 m by 5.76 m rectangles of solid Lexan Exell D sheet. They are mounted on either side of the building’s windows on the façades that receive major exposure to sun. SABIC provided color-matching services and technical support to Colt, and backs the material with a 10-year limited warranty against breakage, yellowing and loss of light transmission. Weighing only half as much as glass, Lexan Exell D sheet reduces the amount of material required for structural supports. The PC sheet also provides high impact strength (250 times that of glass) and flame retardance (compliant with the European fire standard EN 13501-1) for safety, and complies with glazing security impact resistance according to Pr EN 356. Other key properties are dimensional The new flagship Paddington Green Campus of City of Westminster College using solar shading panels made with SABIC’s Lexan* Exell* D PC Sheet “Specialty Lexan sheet products can play an important role in the overall sustainability of commercial and residential buildings that would otherwise call for air conditioning by reducing infrared radiation” Jack Govers, General Manager, Specialty Film & Sheet, Innovative Plastics stability; ease of handling and installation; and resistance to yellowing, graffiti and breakage. “Specialty Lexan sheet products can play an important role in the overall sustainability of commercial and residential buildings that would otherwise call for air conditioning by reducing infrared radiation,” said Jack Govers, General Manager, Specialty Film & Sheet, Innovative Plastics. “At the same time, our Lexan sheet solutions allow architects to create designs that feature high natural light levels, which create a pleasant working and living environment. These materials can help architects and designers succeed in the lucrative sustainable building space and have potential to contribute to eco certifications.” SUSTAINABILITY AND STYLE SABIC’s robust Lexan PC sheet products are lightweight, flame-retardant materials, available in monolithic and multiwall configurations, which are used worldwide for roofing, cladding and glazing massive stadiums, hotels and other impressive structures. They are designed to allow penetration of natural, filtered daylight into living areas without heat build-up. Lexan sheet products can address performance challenges such as color fading, marring and scratching, cracking, rusting, and paint peeling that occur with metal, wood, stone, glass, and other materials. They can be designed with capabilities such as double-sided ultraviolet protection and special coatings that provide a selfcleaning feature or protection against graffiti. Lexan sheet can be cold formed and bent into complex shapes using conventional equipment, and can be enhanced with colors, textures and special effects. Further, the lighter weight of plastics compared to glass allows these materials to be used in large structural components. Lexan sheet offers extremely high impact resistance to minimize the risk of breakage – even when subjected to violent blows by heavy objects. * Trademarks of SABIC Innovative Plastics IP B.V. November/December 2011 SABIC 45 BEHIND THE SCENES Aiming for long-term excellence below The Manufacturing Competence Center control room in Cartagena, Spain 46 SABIC November/December 2011 A global automation project is drawing up plans that look a full 10 years into the future to ensure that SABIC maintains the highest levels of manufacturing excellence In the battle to build leaner, more efficient processes, SABIC’s Manufacturing Competence Center based in Cartagena, Spain, is taking a close look at automation. It has set up the Process Automation Domain (PAD) that brings together 35 engineers from SABIC affiliates and business units under the PAD umbrella. PAD Manager Agustín Reinaldos, a technical expert in the field based in Cartagena, says the goal is to maximize value creation. “Basically, we’re looking at ways to advance our level of technology and leverage process automation resources, processes, knowledge and technology,” says Reinaldos. “More specifically, we want to improve operator excellence and process optimization while modernizing the maintenance life cycle.” BEHIND THE SCENES BEHIND THE SCENES Range of benefits To do this, five groups – Production Management, Supervisory Process Control and Optimization, Regulatory Process Control, Ergonomics and Operator Excellence, and System Infrastructure – are seeking ways to improve their performance and achieve better results. They are examining issues including process optimization, life cycle management, knowledge sharing and supplier relationships. Benefits include lower costs and risks, improved quality and throughput, plus enhanced sustainability. The overall strategy is based on a 10-year period. One example is the development of a Control Systems Life Cycle program. Why will it take so long? A simple reason is that replacing systems is a major undertaking that can only really take place when the plants are closed for maintenance. This happens infrequently. “But we are also working on projects with shorter cycles of 12 to 18 months,” explains Reinaldos. He sees the key to achieving best-in-class results as “joint effort and integration.” Cultural challenge In addition to the technical side, the program has a specific challenge that Reinaldos enjoys. “It’s very international and multicultural. We are based in Cartagena, but collaborate with SABIC people in Europe, the US and Saudi Arabia. Managing the communications and human relationships is the main challenge for me.” The engineers spend about a third of their time working on PAD projects. However, Reinaldos and his team of four – Jos Oelers, WalterJacobs, Jan Versteeg and Joep Bazelmans – dedicate their full time for PAD. “We have team members such as William Horner and Richard Hughes in the UK, Stefan Saur in Germany, Darren Atkinson in The Netherlands and Francisco Cegarra in Spain, and we are also looking to expand the team,” he notes. Unique process SABIC is not the only company looking at improving processes. “However, I’d say that the way we do it is pretty unique,” emphasizes Reinaldos. “Normally, producers have to rely on suppliers to plan projects like this. SABIC is running the process itself in collaboration with internal functions from the Manufacturing Center of Excellence, Global Procurement, Engineering and Project Management, Technology and Innovation, Area Manufacturing Services, as well as with external organizations and suppliers. This means we are determining when and how to proceed to achieve the best results possible.” “It’s very international and multicultural. We are based in Cartagena, but collaborate with SABIC people in Europe, the US and Saudi Arabia. Managing the communications and human relationships is the main challenge for me” Agustín Reinaldos, PAD Manager Above Process engineers in discussions in the control room Left Agustín Reinaldos, Process Automation Domain Manager November/December 2011 SABIC 47 lifestyle 48 SABIC November/December 2011 lifestyle Welcome to the world of 3D Single screen movie theaters gave way to multiplexes; 2D movies came with unbeatable picture quality and Dolby sound. Just when one thought the movie experience could not get any better, 3D has become all the rage for aficionados There was a time when walking into a studio or a theme park wearing 3D polarized glasses to see a short 3D movie was a novelty – and an experience to brag about. However, times have changed. A thriving show business and the unending quest for constantly improving viewing experience have ensured that 3D is now everywhere – including your neighborhood theater and your living room. 3D may be counted as one more example of technological refinement driven by popular demand. The movie Lion King is a classic example of popular demand behind the evolution of 3D. The movie, when released in 2D in 1994, was a runaway success and grossed $936,648,474 at the box office worldwide. The same movie was re-run in 3D – after more than one-and-ahalf-decades – and grossed a whopping $ 71.9 million. That’s what 3D has done to Generation Z – and the rest of the world. We are mesmerized, amazed, and thrilled by this new technology. Considering its chequered history, the fact that 3D has become a global multi-billion-dollar industry today may almost entirely be attributed to technological improvements. When the first 3D movies hit the screens in 1950s, many predicted a golden era for the new technology. Several 3D features were released by Walt Disney and Universal – International studios, Columbia Pictures, Paramount as well as 20th Century Fox. Despite the release of several popular films such as Hannah Lee (1953), Robot Monster (1953), The Tingler (1959), and House on Haunted Hill (1999), the 3D phenomenon was unable to sustain itself owing to technical anomalies, which resulted in a lack of enthusiasm among audiences. The failure of 3D to catch on in the early years was primarily because the technology was not mature enough. For one, the 3D effect was too unrealistic compared with today’s very realistic images; then there were issues with imperfect technology causing eye strain as well as other ill November/December 2011 SABIC 49 lifestyle effects on health such as headaches and nausea. Yet another problem was the poor color fidelity. 3D saw a revival in the 1960s when IMAX introduced improved technology. Soon, Disney theme parks and Universal Studios followed suit. The last decade of the 20th century saw several movies released by the three studios, but only some were well received by the audience. However, by 2004, more than 54 percent of the IMAX theaters were 3D-enabled. More recently, 3D movies including Avatar (2009), Monsters vs Aliens (2009), Final Destination 4 (2009) and 5 (2011), How To Train Your Dragon (2010), Harry Potter and the Deathly Hallows (2010 & 2011), and Alice in Wonderland (2010) have been immensely popular among audiences of all age groups. It is this popularity of the 3D experience that has given rise to an increase in the number of 3D movie theaters and 3D LED TVs. MOVIE THEATERS Today, a 3D movie experience is not restricted to theme parks or specialty studios anymore. In most countries across the world, the 3D experience is a short walk away. There are over 538 3D-enabled movie theaters across the world. Apart from the widespread presence of IMAX in most countries, there has been a boom in the number of other new 3D theaters. These include ‘Maxoom’ & ‘Cinemagnum Reichsbrücke’ in Austria, ‘Scotiabank Theatre’ in West Edmonton Mall and ‘Silvercity’ in Canada, ‘Hong Kong International Airport 4D Extreme Screen Cinema’ and ‘Changying Century City Futurescope Giant Screen Theaters’ in China, ‘Cinemagnum’ and ‘Berlin Event Cinema’ in Sony Center, ‘Thessaloniki Science Center & Technology Museum Giant Screen’ in Greece, ‘UGC Extreme Screen’ in Scotland, ‘Singapore Discovery Centre iWERKS’ in Singapore, ‘Nu Metro Megavu’ in South Africa, ‘Maxxima’ in Sweden, ‘CineMec’ in the Netherlands – and many more. Judging by the enormous popularity of 3D movies now, the world seems ready for many more 3D-enabled theaters. 50 SABIC November/December 2011 “Considering its chequered history, the fact that 3D has become a global multibillion-dollar industry today may almost entirely be attributed to technological improvements” recently, 3D movies including Up (above) and Kung Fu Panda (right) have been immensely popular among audiences of all age groups 3D in the living room The 3D rage is having a major impact on television manufacturers, and all indications are that the battle for 3D supremacy is underway among the big boys of the industry. As the 3D television brings the 3D experience to our living rooms, the experience would not be just about the movies but with almost anything that’s up on TV. Popular brands such as Panasonic, LG, Samsung, Philips and Sony have all entered the 3D TV market in a big way, promising the best viewing experience and amazing color reproduction, as well as addons for style, size and overall quality. Some come bundled with 3D glasses while others don’t bother. Prices for these new living room embellishments range from about US$1,500 to $6,000 plus. Then, there are those ultra extravagant ones priced up to over US$100,000 – with oversized plasma screens and multiple options of luxury and class. Word of caution A study initiated by Samsung’s R & D at the University of Berkeley found that 3D images cause more strain and fatigue to the eyes than 2D images do. The study also found that 3D content, when viewed up close (using desktops, laptops, or smart phones),is visually more uncomfortable. It may be a while before more conclusive research is done on the health effects of viewing 3D, but for now, the movie buffs do not seem overly concerned about becoming sick after watching a 3D movie in the theater or on television. Theaters across the world are now combining 3D movies with other elements to give the viewer a ‘real-time’ experience – incorporating environmental elements such as rain, wind, snowflakes and odor as well as the seating movement. Does adding the fourth (or fifth, or sixth, depending on which part of the world you’re in) dimension enhance the moviewatching experience? Many may find it ridiculous to have water sprayed on them in the theater when a raining scene comes on screen – or for the chair to start rocking during a roller coaster scene – but there is little doubt that 3D is here to stay. The winter chill in Saudi Arabia is an occasion to celebrate the desert charms of open skies, sand dunes and campfires IT TAKES PARTNERSHIP, POLYMERS AND 420 MILES OF PIPELINE TO QUENCH HER THIRST. Water is life. And a clean, fresh, sustainable supply helps communities thrive. At SABIC our vision of safe water for all drives our polymer innovation. And it’s why we work with materials engineers to develop solutions for the world’s expanding water networks. It’s the collaborative approach that has made us a global leader not only in polymers, but also in chemicals, highly engineered thermoplastics, metals and fertilizers. For more refreshing thinking, visit sabic.com
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