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Sabic ... tapping the huge Chinese market

Sabic ... tapping the huge Chinese market

Sabic signs MoU with Chinese major Innovo


Sabic, a global leader in diversified chemicals, has signed a Memorandum of Understanding (MoU) with Innovo Packaging (Shanghai) Co, Ltd., a major manufacturer of packaging products in China, to collaborate in innovation to meet the ever-growing demand for packaging solutions in China’s booming e-commerce sector.

Under the agreement, Sabic will pool its expertise in foams with Innovo’s R&D strength and market insights to jointly develop innovative foamed packaging solutions for parcels which are lightweight, more rigid and durable. Innovo’s customers such as delivery services providers will also take part in these joint research and development (R&D) activities. The new solutions are expected to help parcel delivery companies cut logistics costs and boost their competitiveness.

"Sabic’s dedicated global foam team takes pride in inviting customers and value chain partners to work with us and conduct material validation and processing tests together, to develop even better innovative solutions to address the future needs of the foam and light weighting industry. Cooperation with Innovo is a perfect example of such efforts. That’s what we at Sabic call ‘Chemistry That Matters’," said Ahmed Al-Musfer, director, Marketing & IS Global, Performance Polymers & Industry Solutions, Sabic.

Sabic’s intensified focus on foams covers the entire value chain. The company boasts a dedicated global foam business and marketing team, enabling the focused and fast implementation of solutions to meet the needs of its global customers and partners. Close cooperation with its customers and partners has enabled Sabic to build up a large bank of knowledge on various foaming processes, and to develop a dedicated, diverse foam portfolio, which is applicable in almost all end applications.

Among Sabic’s other ventures in China, the major plans to build a polycarbonate plant with Chinese state oil firm Sinopec are moving ahead in China, where 70 per cent of demand for the product is expected to be.

Yousef Al Benyan, Sabic vice chairman and CEO plans to travel to China by the end of this year to finalise arrangements for both that project and a coal-to-chemicals venture with Shenhua Ningxia Coal Industry Group.

Sabic posted its biggest profit since the second quarter of 2015 this quarter, as a recovery in crude prices buoyed earnings.

The company’s outlook for the rest of the year and into 2018 was stable.

"The fast-growing e-commerce sector is resulting in surging demand for packaging solutions in terms of both volume and diversity. Sabic is a well-established global leader in polyolefins based foam solutions. We are looking forward to working together with Sabic to drive innovative solutions and ultimately create more value for our customers in the e-commerce sector, while promoting environmentally-friendly packaging," said Chen Gang, CEO of Innovo.

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