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SABIC headquarters
Saudi Basic Industries Corp. (SABIC) signed, today, Feb. 2, an agreement to acquire Clariant’s 50% stake in Scientific Design Company Inc.
The company is a 50:50 joint venture between Clariant and SABIC.
The deal is expected to be closed by mid-2022, after obtaining the required regulatory approvals, SABIC said in a statement received by Argaam. Accordingly, SABIC will raise its holding in the company to 100%. Scientific Design focuses on the delivery of high-performance catalysts, technology licenses, and technology services.
The move aims to expand SABIC’s presence in the specialty product market, after the giant petrochemical producer reorganized its business in 2021 and created an independent entity for specialty products to make room for various growth opportunities that are not hit by the factors impacting feedstock.
Yousef Al-Benyan, Vice Chairman and Chief Executive Officer (CEO) of SABIC, said catalysts are the basis for the company’s operations. The deal strengthens the specialty products’ business, which depends on advanced technologies and innovation and which are insulated against economic cycles. SABIC pushes ahead to realize its long-term goal, to become the leading global provider of specialty products.
Specialty products represent a growing global market. The Middle East alone consumes up to $1.5 billion worth of catalysts annually, which in turn contributes to meeting the pend-up demand for catalysts, enhances the reliability of supplies and raises innovation level in this sector.
Scientific Design is headquartered in New Jersey, the US. SABIC acquired 50% of the company in 2003. It focuses on the delivery of high-performance catalysts, technology licenses, and technology services, which are used by over 100 factories across 30 countries.
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