1600 job cuts result from SABIC’s restructuring plans

22-Apr-09

Saudi Arabia Basic Industries Corp (SABIC) has posted a Q1-net loss of 974 mln riyals (US$259.3 mln). Company’s performance has been affected by deteriorating petrochem demand as a result of the global economic downturn. Though demand recovery that has been underway is improving price levels, it is not viewed at a satisfactory level. As a result, SABIC has decided to embark upon restructuring that will lead to reduced output. For this, the company will reduce production or close poorly performing plants. This has already resulted in loss of 1600 jobs.