Weekly MENA Newsletter will be delivered to your email in PDF format every Friday (52 Issues per Year).
Saudi middleweight petrochemicals firms Sipchem and Sahara have postponed a planned merger as sector heavyweight SABIC faces competition in its own arena from upstream and refining giant Saudi Aramco.
With Saudi petrochemicals firms increasing both the quantity and sophistication of their products, state-owned firms SABIC and Aramco are pursuing different strategies for further expansion.
Sipchem and Sahara, with their own expansions under way, saw a merger bringing “significant synergies” in operations and creating a stronger platform for growth. But their plans are dwarfed by those of SABIC and Aramco. First Aramco launched two of the biggest petrochemicals projects in the world: Sadara and Petro Rabigh-2. SABIC countered with a plan for a world-beating oil-to-chemicals project. Now there is speculation that Aramco plans an acquisition to bulk up chemicals capacity. (CONTINUED - 554 WORDS)