SABIC has announced plans to streamline parts of its global chemicals portfolio through the divestment of selected business units, as the company seeks to strengthen long-term growth and capital efficiency.
The Saudi-based chemicals producer confirmed that it has signed agreements to sell its European petrochemicals business to investment firm AEQUITA and its engineering thermoplastics business to investment company Mutares SE & Co.. According to SABIC, the two transactions together represent an enterprise value of approximately US$950 million.
The divestments form part of a portfolio optimisation programme launched by SABIC in 2022 aimed at concentrating investments in business areas where the company expects stronger returns and long-term growth opportunities.
The European petrochemicals business includes production assets in several countries, including the United Kingdom, Germany, the Netherlands and Belgium. These operations produce a range of petrochemical products such as ethylene, propylene, polyethylene and polypropylene compounds used in multiple industrial sectors, including packaging and consumer goods manufacturing.
The engineering thermoplastics business produces specialty polymers including polycarbonate, polybutylene terephthalate (PBT) and acrylonitrile butadiene styrene (ABS). These materials are widely used in industries such as automotive, electronics, construction and packaging components.
SABIC stated that the divestments are intended to support a more focused portfolio structure while enabling the company to redeploy capital into areas aligned with its strategic priorities.
Industry analysts note that major petrochemical producers have increasingly been reviewing their portfolios in response to shifting market conditions, evolving sustainability requirements and the need to prioritise investments in higher-margin chemical segments.
SABIC is among the world’s largest diversified chemical manufacturers and supplies polymer and chemical materials used across sectors including packaging, transportation, construction and consumer products.