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SABIC Academy
Grooming leaders, nurturing talent
CONTENTS
18 INNOVATION MY IDEA goes global 30 Analysis confirms low environmental footprint of SABIC steel
04 20
NEWS EXHIBITIONS & CONFERENCES
Round-up of news stories from SABIC •GPCA Forum, Dubai, UAE
operations around the world •GPCA Talent Convention, Dubai, UAE
.................................... •Third GPCA Supply Chain Conference, Abu Dhabi, UAE
•China Petroleum and Chemical International Conference, Tianjin, China
18
INNOVATION •Saudi Agriculture, Riyadh, Saudi Arabia
After the successful completion of the pilot •Aircraft Interiors Expo, Seattle, US
program in Europe, MY IDEA rolled out across .................................................................
SABIC globally to encourage grassroots
28
innovation across the company
....................................
stim 2012
Countdown begins for the 10th edition of SABIC Technical and
Innovation Meeting to be held in November 2012
.................................................................
General Supervisor:
Mohamed H. Al-Mady
SUSTAINABILITY
30
Vice Chairman and CEO
A Life Cycle Analysis of SABIC’s steel products proves
Editor-in-Chief: low environmental footprint compared with the processes used
Samir A. Al-Abdrabbuh
to make similar products
Vice President Corporate Communications
.................................................................
Managing Editor:
32
Justin Powell-Tuck
Global Media Leader Corporate Communications
LOGISTICS
Senior Editor: Adaptive Dynamic Sourcing (ADS) takes SABIC’s supply chain
Vinod Menon efficiency to a new level in Europe
Media, Corporate Communications .................................................................
Contributions to SABIC magazine are welcome and may be
sent to: vinodm@sabic.com.
40
publishers vouch for its accuracy, neither do they indemnify
any loss arising through the use of the information. The
views or opinions expressed herein do not necessarily reflect CORPORATE SOCIAL
those of SABIC or the publisher. RESPONSIBILITY
SABIC funds the new Autism Research Center in Riyadh,
Saudi Basic Industries Corporation, P.O. Box 5101 draws praise for support to Disabled Children’s Association
Riyadh 11422, Saudi Arabia. and ADHD Support Society
.................................................................
Published by
42 SUCCESS STORY
Flux Chair made from SABIC polypropylene is a seating hit;
Lexan* solar shading panels offer multiple benefits at Westminster
Green Campus
.................................................................
48
Creative Consultant: Frank Stebbing
Senior Designer: Hussain Mohammed
PO Box 301292, Riyadh 11372, Tel:+966 (1) 462 3632, LIFESTYLE
Email: info@alefinternational.com
3D is the new rage thanks to a thriving show business and the
©2011 Alef Publishing & Media
Reprinting in whole or in part is prohibited by law unending quest for a constantly improving viewing experience
except with the prior written approval of the publisher. .................................................................
02 SABIC November/December 2011
FOREWORD
The past few months have been eventful for SABIC. SABIC’s year-end Netherlands Logistics Award.
review meeting, internal launch of branding, record earnings for the third SABIC has launched a project to assess the scope
quarter, visits of leaders from business and government, new projects, for improvements in process automation around
senior-level appointments for different regions and key announcements the world. SABIC’s Manufacturing Competence
related to Innovation make up the News section, giving us a solid feel of Center based in Cartagena, Spain, is leading the
SABIC’s global momentum. Reports about SABIC’s participation in major initiative, which is aimed at ensuring that our
international business and industry events in China, US and the Gulf region facilities will continue to maintain the highest
reinforce that feel. levels of excellence in the coming years. The
project is featured in Behind the Scenes.
Two years ago, we published the news of SABIC’s decision to build a new
Learning and Development (L&D) Center at the corporate headquarters in The SABIC Corporate Social Responsibility program
Riyadh. The Cover Story in this issue is timed to coincide with the opening has expanded considerably over the years with
of the Center, now named SABIC Academy. It explains SABIC’s L&D vision the company supporting diverse community
in the context of the company’s Human Resource Development needs to needs around the world as well as the countries
support the corporate strategy and the company’s global vision 2020. The and markets it serves. The CSR section highlights
SABIC Academy will undoubtedly play a major role in the company’s journey SABIC’s support for a new Autism Research Center
from now on, providing new vistas of continuous learning and leadership to be established in Riyadh, a program to support
development opportunities for SABIC people – regardless of which business the Disabled Children’s Society and the ADHD
they are working for, what they specialize in and where they are located. (Attention Deficit Hyperactivity Disorder) Support
Society.
SABIC’s focus on Innovation and Sustainability continues to generate
achievements that can make us proud. A lifecycle analysis conducted by the
Metals SBU has proven that SABIC’s steel production boasts a significantly Editor-in-Chief
superior environmental footprint compared with competition. In the area
of Innovation, the Market Your Idea is being rolled out globally after the
successful pilot program in Europe while SABIC has also created a Corporate
Incubator and a venture capital arm to invest in innovative technologies.
We bring you two very interesting Success Stories. In Europe, the new Flux
Chair made from SABIC’s polypropylene has made a huge impression on the
furniture market and has won a series of awards. At the City of Westminster
College in Central London, new solar shading panels made from SABIC’s
polycarbonate (PC) sheet is helping to reduce building energy requirements,
and maintenance and lifespan costs. Yet another Success Story, presented as
a Logistics story, sheds light on Adaptive Dynamic Sourcing (ADS), a hybrid
supply chain management project in Europe, which recently won the 2011
ABOVE Individuals and teams were honored at the year-end meeting for their excellent performance
SABIC’s leaders and and Yanbu, inaugurated the meeting, Charlie Various presentations Crisis Management”,
senior managers from the meeting. Crew, Innovative highlighted real and “SABIC Co-operation
around the world Mohamed Al-Mady, Plastics Executive Vice successful cases of with KAUST”, “Examples
converged in Dubai on SABIC Vice Chairman President, was given a SABIC’s operational of Best Practices
December 11 and 12 for and CEO, delivered warm farewell. Crew excellence and provided in the Business”,
the company’s year- the performance retired after more some very interesting “Sustainability Best
end meeting to review report for 2011. than 34 years of and practical insights Practices” and “Adaptive
performance during The meeting was held distinguished service. on how SABIC is leading Dynamic Sourcing”.
the year and strategies in the presence of the The second day the way with new The meeting
for the future. SABIC Board of Directors, of meetings began and more efficient concluded with the
Prince Saud bin all the SABIC Executive with an overview of ways of operating. Prince Saud and Al-Mady
Abdullah bin Thenayan Vice Presidents, as well innovation and the The presentations at honoring individuals
Al-Saud, Chairman of as senior managers. opportunities that are the meetings included and teams who were
SABIC and the Royal At the gala dinner available in different “Building Customer cited for their excellent
Commission for Jubail on the opening day of markets and industries. Value”, “Excellence in performance.
Below The event included several internal presentations Below Prince Saud greets Crew
Left Mohamed
Al-Mady, SABIC CEO
and Vice Chairman,
fourth from left,
after receiving the
Best Company award
New country
leaders for
Europe
In Europe, SABIC has appointed new country
leaders. The new structure will ensure a
common approach that will be focused on
supporting the needs of local markets and
customers. It will also help SABIC customers
benefit from the combination of the
company’s global assets and local expertise.
The appointment of country leaders (pictured
below) will ensure an even stronger local SABIC
presence across Europe with a dedicated
team focused on providing tailored customer
service. By combining a deep understanding
of local market challenges and a reliable
supply of an extensive material portfolio,
SABIC continues to be a strong partner who
VP, Global Supply Chain HR Director, Europe supports the ambitions of its customers.
Saleh Al-Shabnan, who oversaw the Wim Dufourné joined SABIC as Huub Meessen, former Vice President
corporate supply chain project EMDAD, the Human Resources Director for Europe, says: “By bringing the existing business
has been promoted as Vice President, Europe on November 1, reporting and sales organizations literally under one
Global Supply Chain Center of Excellence, to HR EVP Yousef Al-Benyan. roof across our European sales network, we
Corporate Strategy and Planning, Dufourné comes with 20 years will be in a much better position to provide
effective December 1. He served in of HR experience at Shell, and customers with coordinated access to the
several key positions before assuming brings international experience company’s full portfolio of materials and
the EMDAD assignment in 2007. from assignments in Europe, Asia, services, as well as aligned service practices
Al-Shabnan is a graduate in Industrial and the Middle East. He will work to accelerate time to market. Furthermore we
Management from King Fahad from offices in Bergen op Zoom will be better able to connect with relevant
University of Petroleum and Minerals and Sittard, and provide leadership plastics governances and institutes.”
(KFUPM) of Dhahran, Saudi Arabia. to the HR team across Europe.
As the EMDAD Project Executive Dufourné , who has a Master’s
with the responsibility to head up a degree in International Law from
global initiative to develop an industry Erasmus University in Rotterdam,
leading supply chain capability for joined Shell’s HR team in Rijswijk in
SABIC, Al-Shabnan has been reporting the Netherlands after university,
directly to the Vice Chairman and CEO. and progressed to many other HR
His mandate is to develop a globally manager assignments in different
integrated supply chain supported divisions. This experience includes
by a world-class IT platform, business a senior HR role in Southeast Asia,
processes and global logistics network where he gained experience with
and infrastructure for SABIC’s Chemicals, nationalization arrangements. He
Polymers, Metals, Fertilizers and spent several years in the UK with
Performance Chemicals businesses. In Shell’s chemical business, including
2009, Al-Shabnan was also nominated as an assignment leading HR support
the General Manager of the Chemicals for mergers and acquisitions.
SBU supply chain. In his new global He has also carried out executive FROM LEFT Giorgos Moukas, CL Greece; Paul Booth, European
Director for Government Relations & Public Affairs; Daniel
role as Vice President, Global Supply leadership roles in HR with Rabobank Gambus, CL Iberica; Huub Meessen, former Vice President Europe;
Chain COE, he will oversee supply chain International and Suzlon Energy, Henriëtte Smulders, Lead Sales Offices Planning & Performance
Management & Change Manager; Olivier Janin, CL France; Henrik
process and continuous improvement, as well as managed his own Hansen, CL Nordic; Aniko Nyeki, CL Hungary; Konrad Hellmann,
technology and innovation, project consulting service. Dufourné has CL Germany; Daniele Petrini, CL Italy; Piotr Kwiecien, CL Poland;
Michael Allen, CL UK; Hilde Janssen, Management Assistant;
management and logistics strategic regional experience from a previous Roberto Pozzi, CL Czech Republic; Russia’s CL Geert Drummen is not
sourcing serving all products and SBUs. assignment at Maersk Oil in Qatar. in the picture
Kaust lauds
strong partnership
The King Abdullah University for Science and
Technology (KAUST) has described SABIC as a
“strong partner and supporter” of its research
initiatives. A report in the university’s periodical,
‘KAUST in Review’, says that since SABIC’s Strategic
Partner membership in the KAUST Industrial
Collaboration Program began in May 2009, the
company’s involvement at various symposiums,
inaugural events, roundtable discussions and Career
Days has shown that it values its relationship with
the university, its faculty, scientists and students.
The report notes that SABIC has steadily
strengthened and diversified its participation with
KAUST over the years – just as it has grown since
its founding in 1976 to become one of the world‘s
largest petrochemical companies today, with its above Al-Benyan (second from right) listens as Al-Ansari explains the university’s
clear vision to become the world‘s preferred leader facilities using a display model
in chemicals.
Referring to SABIC’s ongoing collaboration
with KAUST, the report points out that SABIC
has established a Center for Research and
Innovation (CRI) at the university. Within five
years, SABIC CRI will house about 150 scientists
SABIC, PMU sign
in diversified disciplines. By the end of 2011, the
company plans to have about one-third of that Foreign Scholarship
number in residence on the KAUST campus,
and working in CRI.
The vision of this Innovation Center is to serve as a
Preparatory Program
bridge between industry and academia with special
focus on strategic areas like alternative feedstock,
like bio-renewables, fundamental catalysis, SABIC and Prince Mohammad received a detailed briefing
advanced materials for future technologies like solar, bin Fahd University (PMU) in about the university and its
membranes and flexible electronics and water. Saudi Arabia’s Eastern Region advanced educational facilities.
“Equally exciting is SABIC‘s commitment to have signed an agreement Al-Benyan said SABIC wants
funding horizontal research. The company is under which the university will to ensure that the students are
currently supporting 15 post-doctoral researchers conduct an intensive three- fully prepared before they are
and scientists at KAUST who are affiliated with month preparatory program sent out to live among other
various KAUST Research Centers,” it says. for SABIC students, who will communities. Al-Ansari assured
The diverse SABIC portfolio provides a wide be sent on scholarship to that the PMU training program
range of research environment and exceptional the United States early 2012. was designed according to
opportunities for academia-industry partnerships. These students represent the needs of SABIC Education
With one to three years of SABIC sponsorship, these the seventh batch of SABIC Programs, aiming to provide the
young researchers will be supervised, evaluated, Foreign Scholarship Program, students with basic skills. They
and further challenged to make an impact on which was launched in 2005. include English language skills and
innovation, creativity and commerce, as SABIC‘s The signing ceremony was other such necessities, as well as
social responsibility and “culture of innovation” join held on August 23 at the PMU preparing them to understand
hands to develop and support new talent. headquarters in Al-Khobar, in Western culture and the skills of
“Continuing to build the SABIC bridge between the presence of Yousef Al- adapting. They were also briefed
the university and industry, SABIC is establishing Benyan, SABIC Executive Vice on how to engage with American
a five-year Endowed Research Chair in the field of President, Human Resources, society and go about their daily
polymer catalysis, and also sponsoring joint research and Dr. Issa Al-Ansari, PMU life with confidence to make it
programs at various KAUST Research Centers,” the Rector. Al-Benyan and the easier for them to successfully
article says. accompanying delegation complete their studies in the US.
Rayong plant
draws safety
praise
SABIC Thailand’s Rayong plant recently conducted
an elaborate emergency response drill at the plant
premises that was witnessed by over 200 people
including provincial authorities. Fire trucks rolled
into the plant premises and fire fighters in full gear
prepared to hit the facility with the water jets as
SABIC represented more than 200 companies from
the Eastern Seaboard Industrial Estate to stage
the plant-wide emergency response drill. The
exercise included fire-fighting, first aid, chemical
spill response and environmental monitoring.
Thawatchai Theadphouthai, Governor of
Rayong Province, praised the professionalism of
SABIC’s emergency response team: “This is one
of the best emergency response teams I have
SAFER workshop held
seen in Eastern Seaboard Industrial Park. The
team was extremely professional and skillful, in the Netherlands
and operated with a high level of efficiency.”
The demonstration was initiated by the Industrial SABIC’s European EHSS European Region to the EHSS
Estate Authority of Thailand (IEAT) and the Rayong (Environment, Health, Safety operating rhythm, citing
Provincial Government, and was attended by and Security) hosted and the European EHSS Council
members of the local community, government organized a four-day regional as an excellent example of
officials, and employees from neighboring plants. program recently at the true regional teamwork.
“It is critical that we are prepared for all kinds of Bergen Op Zoom site in the Syed Azhar Moin, EHSS Global
emergencies as part of our commitment to industrial Netherlands. The key event at Assurance Lead, delivered
safety,” said Sarun Sangkatavat, SABIC Thailand the program was the SAFER the SAFER workshop. In the
Country Leader, highlighting the importance of (SABIC Assurance Program for discussions which followed, the
emergency response readiness. “There is nothing EHSS Risks) leadership awareness European leadership made clear
more important than to ensure that our people workshop on September 28 their recognition of the value
go home safely to their families every day.” attended by senior SABIC of the program, both to
The successful drill demonstration followed the staff from representing efficiently manage EHSS risks
sixth consecutive Thailand National Best Safety various sites and functions. and to ensure the visibility,
Management Award received by the Rayong plant in The workshop was introduced acknowledgement and
July this year for its outstanding EHSS performance. by Ali Al-Garni, General Manager management of these risks
Global EHSS. He emphasized the at the appropriate levels of
importance of SAFER to SABIC for management in each region and
the effective stewardship of EHSS within SABIC overall.
risks across the company. They As part of the program, SABIC
include process safety, personal Corporate EHSS also presented
and community safety, health, the SAFER awareness workshop
environment and security. He to mark the ‘European Process
also stressed the importance Safety Day’. The audience,
of early implementation on made up of process safety
selected sites, followed by full experts from the European sites,
implementation by 2014. expressed their support for the
Al-Garni took the SAFER program. They said that
opportunity to acknowledge it will further strengthen the
the commitment of the process safety requirements that
are already defined within SHEMS
Above SAyed Azhar Moin, EHSS Global
Above Fire fighters geared up in self-contained breathing Assurance Lead, addresses the Safer
(Safety, Health and Environment
apparatus and water hoses workshop at the Bergen Op Zoom site Management System).
PORTAL
Divided into four distinct phases, the global MY IDEA
program will run for eight months until June 2012.
The opportunity being offered to all SABIC employees
is to conceive a viable and compelling new business
idea, which if successful, may be adopted with the full
development backing of SABIC resources.
Launching the program, Al-Mady described
goes global
already shown the strength of Market Your IDEA
and resulted in the incubation of five business
opportunity plans that were created during the MY
IDEA process. Therefore, we now have decided to
run MY IDEA on a global scale. We look forward to
hearing your new business ideas.
SABIC infused new life to its slogan “Ideas are the core of the program, and between
now and the end of the Idea Submission phase,
of ‘culture of innovation’ with the regional teams of Technology and Innovation
launch of ‘Market Your IDEA’ specialists will evaluate and give feedback on each
and every idea submitted by SABIC employees
(MY IDEA) as a pilot program in through the Innovation Portal,” he said.
“You could be the leader of one of those teams
Europe. Following the huge success and your journey starts today. To guide and inform
of the pilot, MY IDEA has been
rolled out across SABIC global below The marketplace events organized as part of the MY IDEA
pilot program in Europe drew enthusiastic participation from
staff. Similar events will be organized in all five regions as part
of the global program
Unprecedented at SABIC, the program is running in
five regions – Europe, the Middle East, the Americas,
West Asia and South-East Asia. MY IDEA provides
every SABIC employee a potential opportunity to
originate and lead a new $50 million business.
Mohamed Al-Mady, SABIC Vice Chairman and CEO,
launched the global My IDEA program on November
14. Under the program, new innovation ideas have
been invited from all staff. Ten most promising ideas
would be selected from each region. Once selected,
the idea owners would be asked to form a team to
develop the idea into business concepts.
SABIC regional operations will hold ‘marketplace
events’ to enable the idea owners present their
concepts to colleagues and to recruit members
for their team. Then the ideas and teams in each
region will be ranked according to the strength of
the idea and the team. Following this, the Innovation
Taskforce, a panel of Innovation specialists from
SBUs and Corporate Technology and Innovation, will
select one idea and team combination from each of
innovative
exciting and unprecedented opportunity for each of
you to showcase your full potential,” Al-Mady said.
petrochemical industries despite concerns over While noting that the GPCA has made significant ABOVE Al-Mady addresses
the opening session
Europe slipping back into recession as a result of progress in establishing the Responsible Care
the ongoing sovereign debt crisis. In his opening initiative in the Middle East and Gulf region, Al-Mady
remarks at the Forum, Al-Mady based his optimism said: “The Responsible Care Committee has done
on the general consensus that the Eurozone will an excellent job in designing an implementation
have a slightly positive growth, and the US will avoid program for the region and building alliances with
a double dip recession. peer associations around the world.”
“If this growth forecast prevails in 2012, it should Al-Mady regretted the fact that the slowdown
be a good year for our industry. Financial results in global economic growth was providing an
should receive an additional boost due to improved environment that leads to protectionist activities. “As
industry operating rates in 2012 as there will be less an industry and as a trade association that believes
new capacity coming on stream.” He also pointed in the value and benefits associated with free trade,
out to the good profitability enjoyed by most we must do our best to advocate against unfair trade
chemical producers in 2011. practices wherever they may appear,” he said.
Al-Mady stressed that Innovation will always Stephen Pryor, President, ExxonMobilL Chemical
be the key driver in the petrochemical industry’s Company, Peter L. Cella, CEO, Chevron Phillips, Jim
efforts to remain competitive and relevant players. Gallogly, CEO, LyndollBasell and Tom Crotty, Director,
“Comparative advantage is not static but is INEOS Group also shared their insights and expertise
dynamic and industries must maintain continuous on the first day of the Forum.
improvement, continuously learning and achieving Dr. Abdulwahab Al-Sadoun, Secretary General,
technological upgrading,” he said. GPCA, delivered the welcome address on Day 2 of
On the issue of Sustainability, Al-Mady said that the Forum. Other key speakers on the second day
just as the petrochemical industry has provided of the event included Hamad Rashid Al Mohannadi,
the technology that has contributed tremendously Deputy Chairman, Qatar Petroleum, Hassan Ahmed,
to good health, good lifestyles and global Partner, Head of Research, Alembic Global, Brad
mobility, it must now provide business solutions Bourland, Advisor, Chief Economist and Managing
for a sustainable planet. “The Gulf petrochemical Director of Proprietary Investments, Jadwa
suppliers must possess the most material and energy Investment, Koos Van Haasteren, Executive Vice
efficient processes and we must produce products President - Performance Chemicals, SABIC, Luther
that enable the entire value chain to be more C. Kissam IV, CEO, Albermarle and Andrew Monro,
sustainable.” Global Advisory Lead for Petrochemicals, KPMG.
HR Benchmark launched
program incredibly well-received by delegates and
speakers alike, the spirit of dialogue throughout the
three days was heartening and uplifting,” he said.
“Issues such as the importance of human
SABIC at CPCIC
with our commitment to inclusive development commitment to innovation and customer focus will
and growth for the nation, SABIC has been stepping help drive new possibilities for China’s seven priority
up its efforts to drive technology development, industries – new energy, energy conservation
innovation, local partnerships, and enhance the skills & environmental protection, biotechnology,
of our workforce.” new materials, new IT, high-end equipment
The three key areas where SABIC has been a keen manufacturing, and clean energy vehicles.
supporter and will remain so in the 12th Five Year SABIC’s focus on research will enable its
Plan are: Commitment to inclusive development, manufacturing customers to innovate and
nurturing new industries and helping industries accelerate their progression up the manufacturing
move up the value chain. SABIC believes that it has value chain. Its commitment to building successful
an important role to play in support of inclusive partnerships with local petrochemical producers
economic growth and development across the such as Sinopec also enables the transfer of world-
world. SABIC provides key ingredients for the class research and manufacturing petrochemical
creation of products across multiple industries. Its capabilities to China.
are based on Ultem polyetherimide (PEI) resin FST performance and impact strength, and complies
technology. They provide exceptional stiffness and with FAR 25.853 and ABD0031 requirements (FAR
flow, which allows for the production of high- 25.853 is FAA [Federal Aviation Administration, US]
performance, thin-wall molded parts to replace regulation related to flame, smoke, heat release
airline grade die-cast aluminum in structural and ABD0031 is toxicity requirement of Airbus) at 2
components, resulting in major weight savings mm and 3 mm, respectively. It is an ideal candidate
and an increase in strength of up to 40 percent. for windows, light diffusers and signs where
SABIC recently completed a proof-of-concept clarity is requested. Lexan F2000A sheet provides
study further validating the performance of these environmentally responsible flame retardance
two specialty compounds in aircraft food tray arms according to DIN/VDE 0472 part 815 standard.
and found that the materials – together with an Extem* UP thermoplastic polyimide (TPI) resins
optimized design – reduced part weight by up to are flame-retardant, extreme high-heat materials
46 percent and cut costs by up to 77 percent vs. that meet UL 746B requirements at a relative
aluminum components. Other potential applications thermal index (RTI) of 240 C, indicating retention
include structural supports, arm rests, foot rests, of certain mechanical and electrical properties
and galley applications such as coffee maker chassis. at this temperature over a 10-year period. Extem
Also capitalizing on SABIC’s PEI resin technology, UP resins also offer up to five times greater flex
“Our continued
Ultem foam is a rigid, open-cell core material that strength and up to five times higher stiffness than investment
is 10 to 20 times lighter than traditional plastic unfilled polyetheretherketone (PEEK) at 200° C. in innovative
components. It is an excellent choice as a core They provide a coefficient of thermal expansion material
material for composite applications requiring (CTE) of up to 30 percent lower than unfilled PEEK.
noise abatement, low moisture absorption, Ultem CAB sheets, co-developed and technologies,
high thermal properties and compatibility manufactured with Crane & Co., provide a superior together
with thermoset and metal laminates. alternative to thermoset aramid fiber-reinforced with our
Another high-tech SABIC product – Lexan XHR honeycomb composites. The Ultem CAB sheets
(extremely low heat release) 6000 sheet provides can be quickly thermoformed, offer a broad range commitment
superior weight-out of up to 12 percent against of high-performance properties, are recyclable to closely
traditional PVC/polymethyl-methacrylate (PMMA) and offer great potential to be refurbished collaborate
products for better fuel economy. Geven S.p.A., with a newly developed decorative film layer
a leading aircraft seating and interior solution to extend useful life while still meeting Federal with aerospace
provider, has chosen Lexan XHR sheet for their Aviation Administration (FAA) requirements. customers,
new aircraft seating for Carribean Airlines’ Building upon Ultem resin’s proven capabilities underscores
“Armonia” interiors, designed by Giugiaro. The for aircraft interiors, carbon-fiber-filled Ultem
challenging goal of limiting the seat weight to a resin complies with FAR 25.853 and the smoke SABIC’s
maximum of 9 kg (19.8 lbs) persuaded Geven to density and heat release requirements of the leadership in
select the high-performance SABIC material. Ohio State University (OSU) standard 65/65. developing
Ultem foam can be used as part of a composite
STRINGENT STANDARDS system with a decorative film or surface layer space-age
SABIC’s high-end thermoplastic products also such as phenolic prepreg or metal. Potential thermoplastic
provide a host of other benefits for global applications for transportation include flooring, materials for
aircraft designers ranging from long, useful life sidewalls and ceiling panels. Processes such
to regulatory compliance. Using these materials as machining, vacuum bagging, compression next generation
can help OEMs provide maximum comfort molding and thermoforming can be utilized with aircraft”
and appeal for passengers while ensuring a Ultem foam for potential system cost savings. Jack Govers, General
high level of safety and controlling costs. Manager, Specialty Film &
Transparent Lexan F2000A sheet offers excellent * Trademarks of SABIC Innovative Plastics IP B.V. Sheet, Innovative Plastics
A SABIC global contest was held in June to decide within SABIC. Abdullah Awwad of Technology and
on the theme of the event. The competition Innovation walked the participants through the
guidelines asked SABIC staff to consider the process of ensuring confidentiality of information
company’s core values – Inspire, Engage, Create and associated legal aspects.
and Deliver – along with the motto of “Culture As the various STIM teams continue to work hard on
of Innovation” and the principle of collaborative their assignments, the progress achieved so far point
working while coming up with proposed themes. to a significantly improved and value-added event
The first meeting of the “affiliate focal points” in 2012. STIM organizing teams are elated about the
in Saudi Arabia in June was another key milestone response to the invitation for abstracts. By September
in the preparations. The affiliate focal points – 27, the deadline set to receive the abstracts, a total
representatives from SABIC affiliates in Saudi of 2186 submissions were received for STIM-10 as
Arabia – held a kick-off meeting on June 15, against 1327 for STM-9. In terms of the number
which was inaugurated by Ali Al Beed, Technical of submissions under each topic, Plant Reliability
Team leader. He explained the objectives of the Management tops the list, closely followed by Process
meeting and key project milestones for the team’s below Occhiello (center) with
Product and Technology
activities. Dr. Abdullah Al Refaie, member of the with STC- Jubail management and Sustainability,
during his visit to Jubail
Innovation Team, highlighted the importance of far below FULL TEAM CREATIVE
Environment Protection,
Innovation at the 2012 event, and Yousef Al Saleh, IDEAS BRAINSTORMING SESSION Safety and Health.
Communication & Publicity Team Leader, explained
the communication strategy for the event.
The global invite from the Technical Committee
to SABIC employees to share their knowledge,
experience, and innovative achievements at
the event went out on June 26. Staff were
encouraged to submit paper abstracts under
six main topics: Technology Development &
Improvement (Product/ Process); Plant Reliability
Management; Electrical & Control Systems;
Sustainability, Environment Protection, Safety and “We have
Health; Quality Assurance & Analytical Technology;
and Business Development, Management,
a wealth of
Quality Systems, and Information Technology. professional
The collaborative spirit of STIM has been talents to draw
evident at the several preparatory meetings
held over the past months. On October 1, the
from, and we
affiliate focal points met at the SABIC Technology are assured
Center in Jubail for a drill down session on of the strong
innovation, success story nominations and
the importance of keeping confidentiality.
commitment of
Dr. Joachim Von Heimburg, General Manager, the organizing
Innovation & Corporate Programs and member of teams as well
the STIM Innovation Committee, shared SABIC’s
strategy to make Innovation the key to attaining
as full support
business growth and strengthen competitiveness in from SABIC
the global industry. management”
Dr. Abdullah Al Refaie, of the innovation team, Ernesto Occhiello, SABIC’s
explained to the participants the new trend in Executive Vice President,
STIM-10 of making room for success stories from Technology and Innovation
As part of SABIC’s Sustainability Program, the Metals the extent of greenhouse gases emitted and the
Strategic Business Unit (SBU) has completed a energy used at each stage of a product’s life.
rigorous Life Cycle Assessment (LCA) of the 10 main Typically LCAs start with raw material extraction
product lines at the HADEED (Saudi Iron and Steel and continue through materials processing
Company) complex. Environmental data collected and manufacture. The LCA also may continue
from all key processes indicate that SABIC’s steel through the distribution, use phase, disposal or
products have lesser carbon dioxide emission recycling. The Metals SBU’s LCA was conducted
and energy consumption, compared with similar for the raw material extraction phase through
products manufactured using alternative routes. to delivery of the products to the distributor.
After completing the analysis earlier this year, the Hamad Al-Tassan, General Manager - Technology
Metals SBU will now obtain third-party verification Management (Metals SBU), explains: “This was
and certification of their results, in accordance a real team effort involving representatives
with ISO guidelines. The third party verification is from diverse functions such as the Metals
expected to be completed by the end of 2011. SBU Technology Management, Sustainability
The company’s business teams will also Core Team at HADEED and SABIC Technology
share these results with customers who are Centers of Jubail and Bangalore, completing
keen to advance sustainability goals, making extensive work to measure every key process
way to forge strong partnerships to work and analyzing the sustainability impact to
together on improving the sustainability calculate the total environmental footprint.
performance of products and businesses. “We also completed a thorough competitive
LCA is a rigorous process used to measure the study. The results were very positive. We found that
environmental footprint of products including our manufacturing processes – which make the
“We now
can see our
results that
show SABIC
steel products
can meet the
sustainability
solution and
we are able
to produce
greener steel”
Hamad Al-Tassan, General
Manager - Technology
Management (Metals SBU)
SABIC’s Supply Chain Polymers Europe division newer and more modern ways of managing
is responsible for the logistics handling of several business, expanding the scope of closer cooperation.
millions of tons of polymers, mainly polyethylenes At the time, transportation was mostly planned on
(PE) and polypropylenes (PP). Four European a reactive basis and often resulted in an imbalance
production plants, imports from SABIC’s plants in between the desired customer service and low-cost
Saudi Arabia and a network of distribution sites are provision of logistics services.
involved in meeting customer demand. Around two- The administration involved in transport
thirds of the volume is transported in bulk, while the necessitated a great deal of manual work, both for
remaining third is packed in bags on pallets. SABIC and the logistics service providers. This meant
Thus transportation is a key factor in logistics, that the workforce needed to grow in line with the
both in terms of imports and the dispatch of transport volumes. Besides, transportation costs
products to customers from European production kept rising in a shrinking transport market.
sites and distribution centers. The majority of the Says Kessels : “ADS process was conceived
products have a low value density, with transport to guarantee transport capacity to meet the
costs representing a large proportion of the total anticipated increase in the volume of European
cost. For economic reasons, products are therefore orders. The central idea was to create a system that
only delivered by road transport to customers within would proactively inform hauliers about expected
a radius of approximately 600 km (also on account transport requirements over a period of time,
of the short lead times to customers). ensuring that 80 percent of the order stream is
executed without interruption.”
Key drivers
SABIC’s transportation strategy is built on several Four elements
principles: safety, security (guaranteed transport ADS consists of four basic elements that have
capacity), reliability (full compliance with the added tremendously to the efficiency of the supply
agreements made with customers), competitive chain: tendering on an annual basis, tendering in
pricing and sustainability (intermodal transport for the interim on the basis of Transport Requirements
longer distances). Erik Kessels, Manager Sourcing & Planning, Loading monitor and xRFQ, which is an
Contracting Supply Chain Polymers Europe explains e-bidding tool for ad hoc sourcing.
why ADS was developed: “In 2005, several factors Communication between all the functions in
prompted SABIC to introduce ADS. These included ADS takes place entirely via a web portal. Nearly
the transformation of the company’s supply chain 90 percent of the volume is shipped via a System
from a network into a more sophisticated model to to System (S2S) connection. The portal serves as
manage larger volumes, the prospect of a doubling a back-up should the S2S connection fail, and also
of demand and the corresponding increase in for the remaining 10 percent of the mostly smaller
transportation costs and the rise in imports.” hauliers for whom an S2S connection has currently
There were other reasons too. Logistics service not yet been implemented.
providers were rapidly growing in size and adopting The processes for planning, transport orders,
loading and unloading sites, up-to-date loading and The jury noted that by organizing so-called
unloading information (track and trace), transported ‘haulier days’, SABIC actively involves service
weights and invoicing are carried out in a paperless providers in finding solutions for key issues such
and contact-less manner. In 2011, ADS included the as safety, sustainability, loading and unloading,
entire plan-do-check-act cycle. preventing empty kilometres and capacity planning.
Raf Bemelmans, Director Supply Chain In its final report, the jury concluded: “Supplying
Polymers Europe at SABIC, says that the unique products promptly and most of all at low costs is
advantage of ADS is that it integrates the planning one of the success factors for the chemical sector.
process for sales, production and transportation SABIC shows how this can be realized in practice.
into one magnified process. “There is no other Supply chain management has clearly been taken
integrated and automated system with this end- to a higher level at SABIC and makes a strategic
to-end scope as far as we know. Under this system, contribution to the company’s success.
we integrate our planning with hauliers’ planning “Summarising, the combination of the four
incorporating all stages of the supply chain process elements of Adaptive Dynamic Sourcing in
including customer orders and shipments,” he European distribution (tendering on an annual basis,
explains. “It is of utmost importance that we tendering in the interim on the basis of Transport
organize order entry and shipment call-off hand-in- Requirements Planning, Loading monitor and xRFQ)
hand with transport contracting.” is of immense added value for SABIC. SABIC has
achieved demonstrable benefits; lower costs and a
Jury’s praise higher level of service.”
In its award citation, the jury described ADS Says Bemelmans: “This award is not only “This award
as an inspiring example of mutually successful recognition of our state-of-the-art sourcing is not only
collaboration between a shipper and logistics process for transportation, but also of 10 years of
service providers, during which planning information process optimization and automation. It allows us
recognition of
is shared proactively and operational processes to guarantee high service levels to customers by our state-of-
are paperless and controlled. It said the project securing transportation in a volatile market.” the-art sourcing
sets an example for transport-intensive businesses The Dutch Logistics Award, a silver sculpture
in the chemical sector, but also applicable for with certificate, was presented by the Chairman
process for
construction products, foods, container transport of the Jury, Walther Ploos van Amstel Esq., in transportation,
and agro-logistics. Amsterdam on November 3. The annual award but also of 10
During the assessment process, the jury spoke is given by the country’s Logistics Management
to some of the logistics service providers involved. Association to honor innovative projects and
years of process
These service providers were unanimous in their extraordinary performance in logistics. The optimization and
enthusiasm for the project and their collaboration Association aims to encourage innovation and automation”
with SABIC. They cited proactive capacity planning professionalism, and says the awarded business Raf Bemelmans,
based on predictions, and paperless processes as must be a source of inspiration and serve as an Director Supply Chain
key advantages. example to other businesses. Polymers Europe at SABIC
Nurturing
talent,
grooming
leaders
The SABIC Academy adds new meaning
to the corporate emphasis on leveraging global
Learning and Development to support talent
acquisition and retention
H
Above Mohamed Al-Mady, SABIC Vice Chairman and CEO, poses with the SABIC Academy team and participants at the launch of the first
Executive MBA program at the Academy
this, and global L&D will play an important and BUSINESS NEEDS
integral role in enabling businesses by bringing While people are at the center of L&D’s vision and
in the most appropriate people development activities, it must be remembered that its strategy
and training programs,” says Al-Benyan. and program content are driven by business
“Leadership development is of course one needs. The ultimate aim of the L&D function is
important objective, but the Academy and L&D to create and sustain a learning organization
are much more than that. Our emphasis is on within SABIC that will strengthen the business
equipping the businesses with the talent, skills and competitiveness and performance of the company.
knowledge that they need on an ongoing basis to Salah Suood Al-Eissa, SABIC’s Global Learning
remain globally competitive,” adds Al-Benyan. Manager, Technical, Learning & Development CoE,
Al-Benyan asserts that today’s SABIC L&D is an says the L&D provides guidance, the necessary
agile and adaptive organization whose objective is tools and support for staff to strengthen their
to serve all four regions of global SABIC: Asia Pacific, learning and capabilities. The department strives
Middle East and Africa, Europe and Americas. The to remain knowledgeable and up-to-date about
organization consists of Regional Learning Leaders SABIC’s businesses and industry management
(RLLs) and functional Learning Product Leaders (LPLs) trends so that it can effectively respond to current
who work closely to respond to each region’s needs. and emerging competency needs of the people
who are involved in running those businesses.
THE ACADEMY COMPLEX “We offer an integrated, interactive and
The SABIC Academy is a state-of-the-art education progressive learning system. By integrated, we
and training complex located at the headquarters mean that L&D enables comprehensive learning
in Riyadh. The complex boasts a mix of large using multiple channels and formats. It is interactive
conference rooms, small breakout rooms, medium and progressive because our programs are
and small-size class rooms and discussion rooms. It constantly evolving and improving in content,
is equipped with advanced video conferencing and and we are committed to implementing positive
‘live’ meeting facilities, computer lab and interactive changes over time to respond to the needs
white boards. The Academy building will host the of the organization and business,” he says.
offices of over 25 staff who make up the L&D.
The Academy building will be primarily L&D PROGRAMS
used for a wide variety of learning programs SABIC has a come a long way in building a
including assessments, workshops, collaborative and internationally effective L&D
“Leadership summits and training classes. program. With major acquisitions happening
Abdullah S Al-Alweet is SABIC’s Chief Learning in different parts of the world over the past
development Officer (CLO), Learning & Development Center of decade (DSM, Huntsman and GE Plastics),
is of course Excellence (CoE). He says SABIC L&D is focused on the organization’s learning, training and
one important providing competence-based learning to enable development scenario had to undergo significant
leadership development. “Our vision and programs churning to produce a new structure and
objective, but are geared to supporting employee learning and new sets of guidelines for global SABIC.
the Academy development at both functional and leadership When eventually the SABIC Leadership and
and L&D are levels. We care about developing SABIC people’s Core Business Skills programs were rolled out
capabilities and skills and we want to help them worldwide in late 2009, it involved internal and
much more grow and achieve their ambitions,” he explains. external partners who brought the necessary
than that. Our Al-Alweet says that the Academy and L&D expertise. Internally, the program relies on experts
emphasis is on CoE will play a key role in promoting learning from various functions while externally, it partners
across SABIC global, and strengthen the with leading international business schools.
equipping the company further as a learning organization. The renowned global institutions that
businesses with “We intend to achieve all these objectives by SABIC L&D has partnered with include the
the talent, skills bringing in best-in-class practices and learning to London Business School, Babson Executive
the SABIC Academy, which will play a vital role in Education, Center for Creative Leadership and
and knowledge managing the concept of learning intervention Thunderbird School of Global Management.
that they to enhance business objectives. A top-quality SABIC has already begun running learning and
need on an L&D program will go a long way in attracting development programs with these institutions.
and retaining talent,” adds Al-Alweet. The global curriculum guide lists dozens of
ongoing basis to SABIC L&D also aims to open its doors to help courses that are currently organized in five
remain globally with national leadership development goals. distinct portfolios: Executive, Leadership, Core
competitive” This would be done by inviting government Business Skills, Technical, Sales and Marketing,
Yousef Al-Benyan, leaders to attend selected SABIC L&D programs and Supply Chain. The curriculum and programs
EVP, Human Resources that are relevant for the wider community. are drawn up in a way that helps SABIC people
at all levels in all businesses sharpen their skills “We care about way communication. Eventually, the portal will
and knowledge to grow within the company. developing become a hub of collaborative informal learning
Culture Matters, Looking Glass, Leading A Team for SABIC staff around the world. The portal will
and Experienced Leaders are examples of effective SABIC people’s support the L&D’s “SABIC teach SABIC” approach
programs that are being implemented by SABIC capabilities and that encourages knowledge sharing among
L&D. Culture Matters is an initiative to build on skills and we experienced managers and professionals. The
global SABIC’s cultural diversity while recognizing programs also include effective e-learning modules
cultural differences; the other three are leadership want to help that supplement face-to-face instructor-led sessions.
development programs that are designed for them grow and L&D will effectively use technology – mobile, wiki
an international workforce. The programs are achieve their and blogs – to allow staff worldwide to learn from
conceived and structured in a way that enables anywhere and everywhere according to their needs.
incorporation of feedback from participants ambitions” Al-Alweet explains that SABIC’s is a truly global
Abdullah S Al-Alweet,
as well as global networking opportunities and SABIC’s Chief Learning
Learning Management System that enables the
cross-functional and cross-cultural learning. Officer (CLO), Learning & whole organization to have access to a common
The Global Corporate Leadership Curriculum Development Center of knowledge pool and harmonize the process of
is now implemented across all regions to ensure Excellence (CoE) learning across the world. The system is equipped
consistency and uniformity of learning content to constantly make adjustments and improvements,
and delivery. The programs are not limited to and redefine programs based either on participant
management, but extend to technical and highly feedback or on new information and technology
specialized fields. For example, the Process that become available every now and then.
Engineering Development program enabled The SABIC Academy symbolizes SABIC’s total
over 350 professionals in SABIC strengthen commitment to grooming talent and skills. According
their technical competencies. Similarly, Finance to management consultancy firm McKinsey, “the
simulation, a finance training program using new war for talent” among global companies is far
technology and conducted entirely online has from over. As the ‘knowledge worker’ continues
also enabled SABIC professionals to share their to hold the key to competitiveness, and as long
knowledge and strengthen professional skills. as there are not enough of talent for competing
companies around the world, that ‘war’ will
LEARNING PORTAL continue. SABIC leaders are hoping that the
Internal collaboration is a key element in the Academy and L&D, along with the host of other
L&D strategy, which has developed a Web corporate programs and policies, will provide SABIC
2.0-based learning portal that facilitates two- the vital edge in acquiring and retaining talent.
Above Prince Sultan with Prince Saud, Al-Mady and other SABIC executives at the
check handover ceremony
‘Pay Every Month’ for Above Prince Saud receives a memento from the ADHD Support Society
If there is one product that has made waves helped to make our complicated product look
recently in Europe’s modern furniture market, it is simple. This material was the most important factor
the Flux® Chair. The foldable and easily portable in the successful commercialization of our design.
chair, which has taken the design world by storm Also, the local assistance that SABIC provided was
and won several awards, bases its simplicity on a invaluable. Not only did the SABIC representative
single-part, single-material approach. And that personally deliver trial samples the next day, but a
single material is SABIC’s polypropylene (PP). technical expert worked with our injection molder
Flux Furniture B.V. selected the SABIC® PP PHC to optimize the tool and processing parameters for
series of impact block copolymers to mold the this very large and tricky part. Based on the success
complex, hinged part that unfolds from a flat of the original Flux Chair, we are creating a child’s
package into an attractive, comfortable and version that also uses SABIC polypropylene.”
highly practical chair. The Flux chair design was “It was a great experience for us to work with an
inspired by origami, the traditional Japanese art innovative design team on this award-winning chair,
of paper folding, which transforms a flat sheet and we look forward to continuing our collaboration
of material into a finished sculpture primarily with Flux,” said Paul Wanrooij, Technical Marketing
through folding and sculpting techniques. Engineer SABIC. “The Flux Chair epitomizes the
The company chose SABIC PP PHC series to creative use of our polypropylene technology and
make the chair because the high-performance shows what can be achieved with a single, versatile
material not only meets the demanding plastic. SABIC continues to develop its SABIC PP PHC
usability and aesthetic requirements of the Flux block copolymer series so that customers like Flux can
Chair, but also supports environmental goals find solutions to their most challenging projects.”
of easy recyclability and weight reduction. Designers Douwe Jacobs & Tom Schouten,
The SABIC PP PHC series of impact block having graduated in 2008 from the TU Delft,
copolymers, featuring high impact strength, high The Netherlands, won in 2009 both the New “The Flux Chair
stiffness and good flow, were the solution to a Venture entrepreneurs competition and the Philips epitomizes
dilemma: how to produce a chair that combines Innovation Award. The Flux Chair is the fruition
flexibility for easy folding and unfolding, excellent of Douwe Jacobs’ graduation project. In search the creative
strength (supporting up to 140 kg/300 lbs) and of inspiration for a line of folding furniture, he use of our
stiffness for stability. The materials offer an ideal blend became fascinated by the art of paper folding. polypropylene
of properties that allow thin hinges to be incorporated Driven by the possibility of creating elegant
into the thicker, rigid chair body. Other attributes shapes with curved fold lines and a single flat sheet, technology and
of the SABIC resin include custom colorability and the miniature scale models quickly found the shows what can
an excellent surface finish for luxury aesthetics. chair’s unique form. Together with fellow student be achieved
The Flux Chair is offered in eight stylish colors: jet Tom Schouten, Douwe formed the company Flux
black, anthracite grey, classic red, bright orange, Furniture. This partnership enabled them to launch with a single,
lemon lime, pebble grey, ice blue, and pure white. the innovative product that was already patented versatile plastic”
The product was launched at the international and ready to be mass produced. Flux Furniture is Paul Wanrooij, Technical
lifestyle fair at Maison & Objet in Paris and the located in Marcel Wanders’ Westerhuis, Amsterdam. Marketing Engineer SABIC
Tendence in Frankfurt in August-September 2010,
targeted at worldwide design chair markets.
Sales of the chair have been rocketing since.
Flux has won significant design Awards such
as Grand Designs Product of the Year, Excellent
in Product Design Award and Philips Innovation
Award; earlier it had won the New Venture Award.
The Flux Chair is also used in promotion campaigns
partnering Mini Cooper, the Amsterdam Dance
Event, British Next Top Model and SABIC.
Although primarily the Flux Chair is a design chair,
it is also very practical: easily foldable, easy to carry
and store, easy to clean and comfortable feel. For
example, 121 Flux Chairs can fit in a Mini Cooper
Clubman. Thanks to the tough SABIC PP material
the Flux Chair has a high durability. It can easily
be folded more then 1000 times. It combines
design excellence with environmental responsibility
because the ease of bulk transportation helps to
reduce carbon emissions and fuel consumption.
According to Douwe Jacobs, co-founder and lead
designer for Flux Furniture, “SABIC polypropylene
Unique process
SABIC is not the only company looking at
improving processes. “However, I’d say that
the way we do it is pretty unique,” emphasizes
Reinaldos. “Normally, producers have to rely on
suppliers to plan projects like this. SABIC is running
the process itself in collaboration with internal
functions from the Manufacturing Center of
Excellence, Global Procurement, Engineering
and Project Management, Technology and
Innovation, Area Manufacturing Services, as well Above Process engineers
as with external organizations and suppliers. This in discussions in the
control room
means we are determining when and how to Left Agustín Reinaldos, Process
proceed to achieve the best results possible.” Automation Domain Manager
Welcome to the
world of 3D
Single screen movie theaters gave way
to multiplexes; 2D movies came with
unbeatable picture quality and Dolby
sound. Just when one thought the movie
experience could not get any better, 3D has
become all the rage for aficionados
Water is life. And a clean, fresh, sustainable supply helps communities thrive.
At SABIC our vision of safe water for all drives our polymer innovation. And it’s
why we work with materials engineers to develop solutions for the world’s
expanding water networks. It’s the collaborative approach that has made us
a global leader not only in polymers, but also in chemicals, highly engineered
thermoplastics, metals and fertilizers. For more refreshing thinking, visit sabic.com