SABIC takes on marketing as part of realignment of responsibilities with Aramco

Following Aramco’s acquisition of a 70% stake in SABIC in June 2020, SABIC became the chemicals arm of Aramco amid an extensive range of optimization synergies and shared value creation initiatives that included feedstock allocation, stream and commercial integration, and human resources. 

Olivier Thorel, Aramco’s vice president of Chemicals, noted that the strategic importance of this integration is in line with both SABIC’s and Aramco’s long-term vision to be the world’s leading integrated energy and chemicals company. 

Among the most important developments to date is the realignment of marketing responsibilities between SABIC and the Aramco Trading Company (ATC) as part of Aramco’s “one face to market” strategy. 

Nasser Lasloum, chemicals director of Aramco Asia, said: “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 after-market services and solutions.
— Nasser Lasloum

What was achieved

The marketing of polymer products from the first three Aramco affiliates of Sadara, S-Oil, and FREP have been officially transferred to SABIC. 

SABIC took FREP off-taking rights to market, both existing products and extensions, to its portfolio, including high-density polyethylene, linear low-density polyethylene, low-density polyethylene, polypropylene copolymer, and polypropylene homopolymer. 

Similar arrangements were made with S-Oil and Sadara to have their respective products off-taken by SABIC, too. Two other Aramco affiliates, Petro Rabigh and PRefChem, will soon follow the first three in having their marketing rights transferred by the end of 2021 after meeting current contractual commitments and operational readiness requirements. 

Abdulaziz Al Hamdan, head of the Aramco-SABIC Commercial Integration Team, commented on the successful transition of the business, “We started the business; we nurtured it; we watched it grow; and now, we handed it over to SABIC at a high note.”  

To ensure business continuity, a customer communication event was organized with attendees representing major partners along with Aramco and SABIC to clearly explain these sales and marketing adjustments and make assurances that they will have no impact on business. 

Equally important to the success of this large-scale endeavor was the cooperation between the numerous HR functions, all of which aligned in a highly coordinated effort to ensure that all necessary personnel movement and mutual support were agreed upon by all parties involved.