Sabic seeks top management changes at three units

24 May 2016

Company recommends changes at affiliates including one which experienced deadly fire

Saudi Basic Industries Corporation (Sabic), Saudi Arabia’s petrochemicals giant has proposed appointing new presidents at three of its affiliates,

The new appointments at the units include one subsidiary which experienced a fire last month, according to news agency Reuters, which cited industry sources familiar with the situation. The sources gave no reasons for changes in the top management of the companies, which are all located in Jubail, the kingdom’s biggest industrial city on eastern coast. Sabic declined to comment to the news agency.

Sabic has recommended to the board of United Petrochemical Company to appoint Abdullah al-Shamrani as its new president. In April, 12 workers were killed and 11 were injured after a fire broke out during routine maintenance at the company, which is 75 per cent owned by Sabic. Although, the fire at the plant was small, smoke inhalation caused the deaths, The cause of the fire remains unclear, however, Saudi Arabia been under pressure regarding health and safety standards at petrochemcial plants. 

United is currently diversifying its sources of finance and expects export credit agencies (ECAs), Islamic finance and capital markets to play a larger role in its plans for the future.

Apart from appointment of Shamrani, who was president of Al-bayroni Al-Jubail Fertilizer Company, a number of United’s general managers are also being replaced.

The other changes being recommended include the appointment of Mansour al-Qsoumi as president of Arabian Petrochemical Company, known as Petrokemya. Khalid al-Elyani is replacing him as president of Saudi European Petrochemical Company known as Ibn Zahr.

Elyani is currently general manager of operations at Sabic’s Sadaf joint venture with a unit of Royal Dutch Shell, according to Reuters.

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