Sahara International Petrochemical Company (Sipchem), one of the leading companies in the global petrochemical sector, has announced that it is firmly on track to achieve the financial and operational goals set out when the newly merged company was created in May 2019.
During the two and a half years since the merger of Saudi International Petrochemical Company and Sahara Petrochemicals Company to form Sipchem, the company has accomplished many significant milestones throughout its integration journey.
As per the Sipchem estimates, In 2019, the company committed to delivering a synergy value of 175-225 million SAR in recurrent EBITDA impact within three years of the merger deal. This target has already been surpassed six months ahead of schedule to reach a synergy value of SAR 298 million, a remarkable achievement that has been driven by increases in efficiency and productivity.
Guided by a robust strategic rationale, Sipchem has succeeded in strengthening its portfolio, increasing the scale and resilience of its operations, and building on competitive advantages.
As per the firm’s reports, 70% of its products are marketed through its subsidiaries in Singapore and Switzerland. The firm also claims that it has further built on its strength and marketing capabilities, which helped achieve its integration objectives while taking advantage of Sipchem’s strong presence in global markets and close proximity to demand centers, customers, and consumers around the world.
Since 2019, the company has made significant progress in several key areas. Sipchem created added value by reviewing its business portfolio and following up on costs, with a strong focus on completing all merger procedures, unifying all policies and procedures, and reviewing the company’s organizational structure.
Sipchem’s focused efforts for effective decision steering and agility also drove increased efficiencies across core administrative functions, achieving improved accountability and talent retention throughout the organization.
Eng. Abdullah S. Al-Saadoon, CEO of Sipchem stated: “From the beginning, we have successfully delivered added value for our customers and shareholders by adopting a rigorous approach to Post-Merger Integration and maintaining our resolute focus on business continuity.”
He also commented: “Thanks to our combined resources, we succeeded in leveraging our diversified portfolio, which has enabled us to reach our targets much earlier than anticipated and achieve annual growth in share value of 145%. This remarkable achievement represents top-quartile value relative to other historical deals in the same industry globally, and places us in a very strong position to attain further growth in the future.”
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