Sabic to raise annual output to 64 million tons by 2008

21-Nov-05

Sabic, the biggest non-oil company in the Middle East plans to invest up to US$70 billion in expansion projects over the next 15 years, raising annual output to 64 million tons by 2008 from 43 million tons. Sabic plans to focus on its existing infrastructure and is also considering acquisitions. Sabic's has plans to expand in Europe and China, trying to complement its good marketing network in Asia by manufacturing in Asia. Sabic is contemplating a bond issue to finance European investments after its Sabic Europe affiliate is given a credit rating. Sabic also expects to benefit from Saudi Arabia's accession to the World Trade Organisation, although it already had good access to international markets. Sabic plans the kingdom's first domestic bond issue of SR1 billion ($270 million) before the end of this year, in an attempt to pre-empt future requirement for money.