Aramco, SABIC streamline marketing, offtake, and sales operations
Move creates a one-stop shop for the benefit of customers globally, especially across Asia.
Aramco and SABIC have announced their intention to transfer the marketing and sales responsibility for a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products to the Aramco Trading Company (ATC).
The effect of these changes, planned to be implemented on a phased basis throughout 2021, subject to the necessary consents being obtained, will result in SABIC focusing on petrochemicals products and ATC on fuel products.
This is a significant step in aligning the Aramco and SABIC strategies, following Aramco’s acquisition of a 70% stake in SABIC in June 2020.
Aramco and SABIC will continue to review options for further global marketing and sales transfers across product producing companies within the Aramco group portfolio.
Benefiting the companies’ customers
The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and aftermarket services and solutions.
Ibrahim Q. Al-Buainain, president and CEO of ATC, said, “The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and SABIC’s respective product portfolios as we strive to create added value for our customers and shareholders.
Together, ATC and SABIC are focused on providing a world-class products and services offering. These changes will place us in an even stronger position to deliver market leading innovation and value.
— Ibrahim Q. Al-Buainain
Setting up a one-stop shop
Abdulrahman S. Al-Fageeh, SABIC executive vice president of Petrochemicals, said, “By leveraging and optimizing our complementary combined product portfolios, we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia.
“These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition,” Al-Fageeh said.
Petrochemicals, fuels, and shipping
Responsibility for the global marketing and sales of certain Aramco petrochemicals and polymer products and those of its joint ventures and affiliates will transfer to SABIC. After completing the consolidation of petrochemical products, SABIC will market both existing products and extensions to its portfolio. In parallel, responsibility for offtake, resale, and sourcing of a number of existing SABIC fuel products globally will transfer from SABIC to ATC.
Responsibility for the commercial aspects of liquid bulk marine shipping services will be consolidated under ATC, including chemicals and feedstock, while responsibility for the shipping of all solid products and customer product delivery will be consolidated under SABIC.