AS part of its strategic transformation plan and to increase efficiency and competiveness of all its global operations, SABIC announced on Wednesday its intention to merge two of its manufacturing affiliates, Saudi Petrochemical Company (Sadaf) and Arabian Petrochemical Company (Petrokemya).

This step has come as part of the company’s transformation program, which was initiated three years ago to enhance agility across all its operations.

All assets, rights, liabilities and obligations of Sadaf will be transferred to Petrokemya. Subject to regulatory approvals, Petrokemya

will continue to exist, while Sadaf will cease to exist as a legal entity. The merger process is scheduled to be completed in the second half of 2019.

With the merger, SABIC seeks to create a more efficient platform to optimize assets and unlock value from the synergies between the two companies’ product streams. It is also expected to create more effective and streamlined operations, maintenance and project execution.

Sadaf, a limited-liability company based in Jubail, produces ethylene, styrene, caustic soda, MTBE, and ethanol. It operates six petrochemical plants with a total production capacity of more than 4 million metric tons per year, besides a cogeneration power station.

Petrokemya, also a limited liability company in Jubail, produces ethylene, propylene, butene, benzene, butadiene, polystyrene, polyethylene and acrylonitrile butadiene styrene. — SG