SINGAPORE – A Saudi petrochemicals giant officially opened a new $220 million resin manufacturing facility here on Nov 7.
The nine-storey plant in Pioneer – Saudi Basic Industries Corporation’s (Sabic) second factory in Singapore – will produce a type of high-strength resin used in industries such as aerospace, healthcare and electric vehicles (EVs).
The facility, which began operating in October 2023, already produces 8,000 tonnes of resin and is expected to eventually increase Sabic’s total output by more than 50 per cent. The resin, known as Ultem, is also made at Sabic’s facility in Indiana, in the US.
Sabic declined to reveal the new facility’s headcount but said that it has plans to expand its total Singapore workforce of more than 300, adding roles such as engineers, scientists and chemists.
Chief executive Abdulrahman Al-Fageeh said the new plant aims to meet the growing demand for high-quality thermoplastics from high-tech and manufacturing industries in the Asia-Pacific region.
“The new facility fits very well with the high-tech manufacturing that is taking place on Singapore’s land, contributing to the country’s economy,” he added.
“(It also) reinforces Singapore’s central role with extensive trade agreements across the region.”
Senior Minister of State for Trade and Industry Low Yen Ling told the opening ceremony that the manufacturing industry has been the cornerstone of Singapore’s economy.
Ms Low noted that the energy and chemicals sector contributes 3 per cent to gross domestic product, and is the second-largest contributor to manufacturing output.
Chemicals comprised the largest share of Singapore’s total fixed asset investment commitments, totalling $4.5 billion in the 2023 financial year.
“Looking ahead, rapid urbanisation in Asia and increasing demand for high-tech products like EVs present significant growth opportunities,” said Ms Low.
“Companies like Sabic, whose products serve these markets, are well-positioned to expand... The opening of Sabic’s new facility underscores Singapore’s role as a gateway to Asia and a leading hub for the chemicals industry.”
Sabic, which is based in the Saudi capital Riyadh, employs 31,000 people worldwide and has customers in more than 140 countries. The firm specialises in the production of chemicals, commodity and high-performance plastics, as well as fertilisers.
Sabic reported a net profit of 1 billion riyals (S$354 million) for the three months to Sept 30, reversing a loss of 2.87 billion riyals for the same period in 2023.
Correction note: In an earlier version of the story, we said that the energy and chemicals sector is the second-largest contributor to overall GDP. This is incorrect. The sector is the second-largest contributor to manufacturing output.
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